Lining: Lost Transformation Strategy

Lining brand, once regarded as the symbol of the rise of China's sports industry, is now in an awkward position. Investment banks have been reduced, profits have stagnated, and prices have been continuously raised. Lining, who has been changing, seems to have lost himself.

　 predicament

On the 11 and 12 th of this month, Li Ning Co CEO Zhang Zhiyong and CFO Zhong Yiqi also increased their stake in the company, involving an amount of 1 million 219 thousand yuan. It is generally believed that Lining Executives are reluctant to increase their holdings. The aim is to deal with the reduction of investment banks. According to the stock exchange data of the stock exchange, JP Morgan and the Federal Bank of Australia have previously reduced Li Ning Co shares by 206 million 700 thousand yuan.

Li Ning Co stocks, once favored by investment banks, were abandoned and had no bearing on the company's situation. On the 7 th of this month, Li Ning Co issued a profit warning, according to the current order price, the overall sales revenue in 2011 will drop by 5% compared to the same period. At the same time, because of the efforts to increase channel reform and speed up inventory clearance, it is estimated that the net profit margin in the first half of this year will decrease from 12.9% in the same period last year to 6%-7%. With the news, its share price plummeted 15.77%, a 27 month low. As early as May this year, the original COO Guo Jianxin and some key employees also left the Li Ning Co.

Of course, Zhang Zhiyong will not be able to see the complexity behind these figures and personnel changes. There were giants such as Nike, Adidas, and Anta and 360 degrees. Lining has been in the twining of the two ends for a long time.

"As a company CEO, I am sure I know the development of the company in the next six or seven months, but I am willing to take this responsibility at this critical stage." Zhang Zhiyong, in an interview with the media, once defined the current state of Li Ning Co as "the most critical juncture of transformation".

　 The throes of transformation

In July 7th, after the earnings warning report was released, Lining, the founder of the company, sent a "letter to employees" from Hongkong. In his letter, he stressed that "the board and management have reached a consensus on the goal of active change, and fully support CEO and management's implementation plan for achieving the goal of change."

Lining's brand transformation has a long history. In 2005, Lining hired professional agencies to investigate. brand Present situation. The survey showed that consumers accounted for 50% of consumers aged 35-45. In order to win the favor of young consumers and expand the consumption crowd, Lining changed advertising slogans, signs and repositioned them in the three quarter of last year, locking the consumers into "post-90s".

Lining represents a period of sports in China. brilliant It was also pursued like a national hero. But for the "post-90s", Lining's peak is too far away from them. Lu Yiqi, a marketing expert, points out that the brand role of Lining as a sports star is negligible for the post-90s generation. In this way, Lining brand will not form a brand conjunction with "post-90s". In addition, some experts believe that Li Ning Co's price positioning is not suitable for "post-90s". As we all know, the price of Lining products is slightly lower than that of foreign brands such as Nike and Adidas, but higher than that of Anta, XTEP and other domestic brands. Wang Zhiqiang, an independent financial observer, said that most of the "post-90s" consumer groups did not have a stable economic source, but they pursued a new high-end. They either can't afford to buy Lining or simply choose foreign brands such as Adidas and Nike.

The problem now facing Lining is how to get the identity of the "post-90s" consumer group. Xu Yunfeng, a brand analyst, points out that it is useless to shout slogans. Lining brand must increase the degree of integration and contact with the "post-90s". By sponsoring some "post-90s" participation in public welfare activities to increase the recognition of "post-90s", this will be acceptable to young groups.

　　 Swing positioning

At the beginning of its founding, Lining's position was a professional sport. motion The clothing brand, however, today's Lining is somewhat unpredictable, and keeps waving between professional and fashion. This can be seen from the spokesman of Lining's image. O'neal, Lin Dan, Wu Minxia, Powell, Isinbayeva, China badminton team and Chinese diving team, Lining also signed Lin Chiling in March this year as his new spokesman. Lining appears greedy, not only involves the whole product of sports, but also makes himself like a fashion brand.

The result is that if you ask Li Ning Co what sports products are most prominent, the answer is No. Wang Zhiqiang thinks that what kind of route the Lining brand should take is fashionable or professional, not very clear. Lining's choice of image endorser can not convey clear demands to consumers. The image of the international brand giant Nike is quite numerous, but it is relatively concentrated in the field of basketball. Nike's professionalism of basketball equipment is also conveyed to consumers. {page_break}

Lu Yiqi also pointed out that in the field of marketing, a brand usually grasped a bit and then carried out unlimited extension, which is the core competitiveness of the brand. The building of a brand must not be achieved. It must be willing to give up. "If Lining brand wants to expand consumer groups, it can develop sub brands, so that sub brands will have a prominent performance in a category, while Lining brand must be specialized, whether it is fashionable or sports. If we want to clear the brand positioning, otherwise it will not be conducive to brand development."

Lining, a Chinese sports hero who was born in 1963, is close to "knowing destiny". His "Lining" is also anxious about his destiny.

Lining once said: do not become China's Nike, be the world's Lining. Of course, it is admirable, but it is imperative to do well in China's Lining.

　 Lining obviously can not expect to have the Beijing Olympic Games every year.

In 2008, it benefited from the huge celebrity effect of "Ling Bo's micro step" over the "bird's nest". Lining's net profit increased by 52% over the same period last year; the growth rate slowed down to 31% in 2009; the figure dropped to 17% in 2010; in 2011, Li Ning Co had little good news. Thus, "one elder brother's status is not guaranteed", "facing unprecedented difficulties" and "being" surpassed by the "Fujian Department". There are more and more evaluations of Lining's future.

As a brand, Lining has just faced a crisis of middle age. He wanted to jump in the air and become a young man's "Lining", but he never wanted to lose his head and become the most familiar stranger after 70.

The Li Ning Co set up in 1990 is almost the same as the "post-80s generation". It is also the "first generation" of Lining after the 1980s. For those who are in the middle school, the "80 after" children, Nike, ADI Shang luxury, Anta, XTEP is unknown. Lining may not be the only choice, but it is the most appropriate choice. In fact, Lining has a very good start, because the memories embedded in the youth of the flower season are a lucky brand.

Under the sanction of "lucky", Lining has been successful as a company for 20 years. But as a brand, he can not compare with Nike and Adidas. Because Lining has never found his own personality, just like Nike's basketball shoes best, ADI's football shoes best, but Lining what best, people can not agree. Is Lining really stylish or professional? Is it high-end or universal?

Everyone knows that Lining needs to change, including Lining himself. The brand needs a substantial upgrade to make brand profits instead of making profits. But Lining's change is far more daring than we thought. "90 after Lining", a brand new position, said goodbye to the "70 after" which was born, and crossed the 80's with its growth, and went all the way to the "post-90s". The once mainstay consumer group has now become an abandoned generation. "After 80" inevitably boycott, and "after 90"? They were still ignorant of Lining.

Maybe you can steal Adidas and divide the product line with three bars and clover. But Lining turned his whole career to the post 90s, but he could not help but say that it was a loss of emotion. Turn around too fast to stagger. This kind of stagnation is even more fatal in a low end market that is firmly controlled by foreign capital giants in the "made in Jinjiang (sports brand producer)". A deeply rooted "local best sports brand", how to break through is obviously not to please the "post-90s".