Lining Sports Encountered Bottlenecks In Development: &Nbsp; Brand Positioning Is Very Confused.

In June 2nd, the past few years witnessed the rapid development of China's sporting goods industry. The annual compound growth rate of over 35% of the industry has made every enterprise develop rapidly. brand Both achieved remarkable achievements, and Lining also won them. market A share of second. Entering the 2010, the growth rate of China's sporting goods market has dropped to 15%, and the growth path of opening up stores has been difficult to achieve.

At the same time, as world-class sports resources have been dominated by international brands, the way to imitate overseas light asset development mode has also encountered bottlenecks. Last year, Lining repositioned his brand and began to internationalize, identified the development path of multiple brands, and began to integrate channels. However, these major adjustments were not only criticized by the outside world, but also not recognized by the capital market, and the share price was also greatly frustrated. Lining's change in the past year is essentially to break through the bottleneck, but the lack of method is also the collective confusion faced by Lining and the entire sporting goods industry.

Lining's current market share in China has gone beyond the mere change of brand positioning. Adidas However, its brand value and positioning lag behind the international first-line brand. Judging from the three or four principles of the strategy, the top three in the market undoubtedly have a competitive advantage. Although Lining's sales rank at second, its brand appeal is lower than Nike, Adidas and Kappa. Even though sales are ahead of Adidas and Anta, the growth rate of Anta is amazing, and the weak gap with Adidas is easily reversed.

Compared with the main competitors, Lining did not occupy a favorable position. At the same time, the main sports brands in China take different positioning strategies: Anta is positioned in the comprehensive sports equipment, Hongxing Erke is positioned in tennis, PEAK is positioned in professional basketball equipment, and Kappa relies on the precise market positioning of sports and fashion, rapidly rising in the national sports brand, and competitive advantage is obvious in the market segmentation. Nike and Adidas are facing such a competitive situation. Under the premise of domestic brands' full education for consumers in the two or three line market, they are ready to launch mid-range price products. Once Nike and Adidas enter the two or three line market, they will make a big impact on Lining, Anta and other brands.

In this competitive situation, forcing the brand positioning closer to the main competitors seems to meet the needs of competition. The key to the problem lies in the reluctance of the Li Ning Co from inside to outside, without thinking about changing the implementation path of brand positioning. It is only the change of logo and the positioning of the crowd in the post-90s consumers. It is expected that the new consumers will recognize Lining as the international first-line brand. From the perspective of Chinese brands instead of international brands, this kind of substitution is usually achieved by product upgrading and market expansion. Generally speaking, it is upgrading of technology or upgrading of core competence instead of simply changing brand positioning under the pressure of competition.

Is the light asset model really applicable?

Enterprise strategic positioning determines the brand positioning of enterprises, brand positioning will also restrict the formulation of enterprise strategy, and there is a process of repeated revision between them. The Li Ning Co has established the strategic goal of "China first" very early, and has determined that imitation is beyond this development path, and the key point of this path lies in the brand. From this perspective, Lining's fascination with brand superiority and changing brand positioning is understandable. However, when Nike and Adidas are moving towards the light asset model, they have set up a model barrier for the latecomers. This barrier is to support the brand's sports resources and media resources. When a few big international brands control the global sports resources and advertising resources, the later people want to achieve transcendence through these ways, which will be impossible tasks.

When imitating the transcendence of market leaders, Lining paid too much attention to the "present mode" of leaders, but neglected the growth path and stage of leaders. The growth process of market leaders has the following two characteristics.

First, because of the manufacturing links in China's Jinjiang plate, they did not blindly imitate Nike and Adidas's light asset model. Anta even took up the whole industry chain coverage mode. Nike and Adidas's previous mode was also a vertically integrated whole industry chain coverage mode. Light assets are not the development mode of international brands at the initial stage of development. They are the choices after their internationalization, industrial chain management and brand appeal. {page_break}

Second, brand growth is also starting from specialization. Through specialization, sports resources of different market segments are gradually controlled, and brand value is continuously promoted through media communication. If we stare at mass sports resources, we will find that there are few opportunities. If we keep looking for specialized market segments, chances will still be widespread. This is also the initial idea of Hongxing Erke positioning in tennis and PEAK positioning in professional basketball equipment.

When Lining's imitation goes beyond the end, if we simply locate the crowd after 90, or close to the international brand on the price, and the product and brand itself do not support this transformation, then Lining can not only find the brand positioning interval, so as to separate the Jinjiang plate and narrow the gap with the international first-line brand. It will also risk the strategic risk of losing the old customers due to the confusion of location.

In the sporting goods industry, the core of achieving strategic positioning is not just one brand. If we are going beyond the brand influence, then only the mode barriers and brand barriers will be waiting for competitors because of the brand strategy of leading brands.

The way to attack leading brands

The author believes that there are two ways to attack leading brands.

First, the single brand is progressive.

According to Lining's 2010 earnings report, the sales revenue of Lining's main brand accounted for 92%, while the rest of the products made little contribution to sales performance. In the sporting goods market, Lining did not dare to create a more high-end brand to directly compete in the competition. Instead, he only contended with the international first-line brand through Lotto. After feeling the effect was poor, he wanted to directly enhance the positioning of Lining's main brand and participate in the competition of the international first-line brand.

Single brand is also a way to be implemented. The integration of later channels, brands and funds is easier than the multiple brand models. The key lies in how to gradually enhance the positioning of Lining's main brand.

First of all, do not imagine that there is a positioning gap between Lining and Nike. Lining was originally slightly higher than the price of the domestic Jinjiang plate, half a bit lower than Nike, and it is difficult to distinguish the more detailed price range between the middle and high price and high-end. The gradual change of brand positioning by gradual price increase is not accepted by the market. From the second quarter of 2011, the order of Lining sports shoes brand products can also be seen. The order amount calculated according to the retail price tag is the same as that of the same period last year. The average retail price of clothing products and shoes rose by more than 8%, but the order quantity decreased by 7% and 8% respectively. At the same time, as the company adjusted the wholesale discount rate to dealers in 2011, the order volume decreased by about 6% compared with the same period last year, and the customer reduction may be even larger.

Secondly, we can maintain our original brand positioning and promote ourselves through category breakthroughs. Specific measures: first, through internal resource analysis and external market segmentation opportunities, we can find breakthroughs in the category, provide high-end brand positioning products for this category, and take the lead in price increases. For example, find a breakthrough badminton product, after sponsoring the Chinese badminton team to obtain scarce sports resources, around the needs of badminton sports, research and development and production of specialized products, matching the appropriate media resources to achieve the high-end positioning of this category. Two, we should gradually occupy several sports activities that Chinese people enjoy in the market segments, such as badminton, table tennis, football and basketball, and expand the viscosity of these loyal consumers to the public products. The three is the breakthrough and promotion of the whole series through the breakthrough of individual products, such as the development of running shoes with the latest technology, through professional sports resources and entertainment resources, making it a high-end product of this category.

Second, multi brand nibbling.

From the perspective of product coverage, Lining's product line covers the fields of high-end outdoor sports, professional tennis, professional basketball, sports equipment, sports and fashion. From the product positioning, Lining's products have completed the Pyramid layout of three high consumption, middle and low consumption classes (see Table 2). But this can not completely solve the problem of upgrading the main brand of Lining, and the sales situation is not ideal. {page_break}

First of all, we should build a multi brand layout around Lining's brand positioning. Lining's strategic goal should not be only the first in the sales volume of the financial statements, but the first of the brand positioning and the appealing force, and the first of the profit level. At this stage, Lining's multi brand is a bit confusing, and more is to seize market opportunities. In order to get the sales growth of financial statements, because the poor execution has become the burden of Lining, the most important thing is that many brands do not form brand synergy and consumer stickiness, and too little help to the main brand.

Secondly, under the premise of full preparation, timely launch the high-end private brand under Lining's main brand. From the perspective of specialization, we should not only acquire consumer identity through homogeneous products and advertising resources. To locate the brand that provides sports goods for high-end professionals, you can publicize yourself through the already known sports resources, such as the badminton team of China using Lining badminton rackets and professional costumes, cross border resources if necessary, and docking with the enthusiasts sports fans of entertainment stars, so that more people can accept the professional positioning of Lining's high-end brands. Further, we can gradually transition to comprehensive training and fashion life through the customer stickiness generated by the loyalty of high-end professionals, and finally enter the largest brand market of fashion life, and complete the transcendence of high-end brands on Nike and Adidas.

Thirdly, multi brand layout needs to provide professional support for high-end products, and can curb the attack of low-end brands to high-end products. First, high-end professional subbrands provide support for high-end brands, and make supporting products for them to form a strategic interaction between the two. The two is to provide casual sports clothing for more ordinary people through middle and low end products, reduce the threat of the main competitors to the main brand of Lining, and gradually cultivate the loyalty of consumers in the two or three line market, waiting for these consumers to identify with the main brand of Lining, and gradually convert these consumers into Lining's main brand or high-end brand users.

Building capacity support for brand promotion

In order to support the transformation of brand positioning, it is necessary for enterprises to build up their core competitiveness and ability support, which is the guarantee for the transformation and upgrading of brand positioning.

First of all, from the strategic height to brand positioning to enhance the core competitiveness.

Sports brand can imitate the light assets mode of Nike and Adidas, but it can also take advantage of vertical integration mode to build the whole industrial chain. The author believes that building cost advantages, product research and development advantages, material innovation advantages and professional service advantages can provide opportunities for local brands to surpass the international first-line brands.

First, build the whole industrial chain. To enhance the overall profitability of enterprises, not just limited to the brand link, so that Lining can get more funds to support the high-end brand professional development and international expansion.

The two is to invest money into research and development. We should break through the disciplines of materials science, ergonomics and biomechanics, and provide more powerful R & D support for product innovation, such as providing innovative technology for sports shoes such as fitting, lightweight, breathable, shock absorption, energy recovery and so on.

Three is to strengthen the innovation of clothing materials. Innovating textile technology, dyeing technology, clothing design technology, improving the technological content of the whole industry, and even providing different types of material selection for each professional clothing, and getting rid of the status quo of product homogenization. Take the UnderArmour, a sports equipment brand created by a rugby player in the United States as an example. The fabric of the brand takes the sweat absorbent polyester yarn as the material, creating the trend of sports equipment. In the segmentation market, its brand name even covered Nike and Adidas.

The four is to provide differentiated high-end professional services for high-end professionals.

Secondly, we should innovate the advantages of sports resources.

Sports resources are mostly monopolized by brands such as Nike and Adidas, especially the international high quality sports resources. Chinese brands want to break through, they can innovate in combination with China's national conditions, highlight the advantages of China's sports resources, such as badminton and table tennis. It can also tap the use of entertainment resources in sports products, such as star football team, star badminton team and so on. {page_break}

Third, shape management advantages.

If Chinese enterprises want to surpass management, they should also enhance their brand operation, single shop profitability and channel management capabilities.

In 2005, Adidas acquired Reebok, Nike bought CONVERSE in 2007, and the world sporting goods industry was gradually oligarched. In contrast, Lining, after giving up the Kappa, Kappa rapidly emerged from the precise market positioning of sports and fashion. Therefore, Lining's multi brand management ability is not strong enough. The most important thing is how to form interactive ability among multiple brands, and the building of this capability needs to be considered in conjunction with the enterprise strategy.

The key to improving the profitability of a single store is the standardization of the operation mode, that is, not only by placing orders to the distributors or franchised stores. Brand owners need to improve the profitability of their single stores as the most important part of the sales process. They need to organize special people to carry out research, implementation and continuous revision and promotion of the work.

Because multi brand expansion may involve channel sharing and conflict of interests, the disorderly expansion of channels will inevitably reduce the enthusiasm of franchised stores, affect the endogenous driving force of the franchised stores, and even cultivate the distribution channels for competitors. At the same time, in the process of multi brand promotion, it is necessary to integrate the layout of the channels in a targeted way, so that each brand marketing work can have both channel support and the synergy effect of the channel.

In the process of international brand competition, Chinese sporting goods enterprises have become a common puzzle after the initial competition. Simply upgrading or changing the brand positioning will fall into the trap of the leader's presupposition. It is the best choice to complete the two ways through single brand gradual development and multi brand encroachment.