Interpretation: What Is The Goal Of Lining'S Future Development?

July 26th guide read: different people look at Lining, have different interpretations.

Some people say it is slow, some say it is atmospheric, some say it is changeable, others say it is reserved.

And in front of the public, it was once "everything is possible" bend overtaking.

For Lining, the biggest sportswear company in China, 2011 may be a turning point.

Thanks to the Olympic Games,

The 2010 annual report shows that although Li Ning Co's turnover of HK $9 billion 479 million was ahead of HK $7 billion 408 million of Anta sports, Anta's HK $1 billion 551 million was far more than that of Lining's HK $7 billion 408 million, while Anta's 23.4% was also higher than that of Lining's 16.3%. In terms of measuring operational efficiency, average turnover days, average receivable turnover days and average accounts payable turnover days were Anta, 36, 19 and 36 respectively, while Lining was 52, 52 and 52.

In terms of market value, Anta is about HK $35 billion 800 million, and Lining is currently about HK $15 billion 800 million, which is more than two times that of the latter.

Ten years ago, when Lining had become the most famous brand in the country, Anta was only a representative of Fujian's grassroots clothing.

Worse news comes from the market. In the same period of the overall market growth of nearly 20% of the environment, Lining set the domestic sports brand in the second quarter of 2011, the worst record of orders, the total value of orders fell by about 6% year-on-year according to the wholesale shipment, the order growth in the domestic sports brand listed companies in the last place, and market organizations also do not optimistic about the two quarter growth prospects.

In 2011, Lining expects to increase the number of stores to 8500, while Anta plans to achieve the scale of "10000 stores".

The capital market seems to be losing confidence in the future performance of Li Ning Co.

In December 20, 2010, Li Ning Co's share price plummeted due to a sharp reduction in its trading volume, falling 23% in one day and evaporating nearly 4 billion 500 million Hong Kong dollars in market value.

This is the worst day of the Li Ning Co's experience in the capital market since it was listed in 2004.

Among them, JP Morgan dropped 12 million 883 thousand shares at HK $18.24 per share and reduced the target share price of Li Ning Co by 23%.

On March 17, 2011, at Li Ning Co's 2010 performance briefing, CEO Zhang Zhiyong predicted that the average cost of Li Ning Co will rise by 20% in 2011, and the price of products will increase by two digits.

Lining's stock price fell for another 3 days, or nearly 15%.

As of May 18, 2011, Li Ning Co's stock price was 14.96 yuan, and less than a year ago, Lining's stock price had approached HK $30.

What's wrong with Lining?

Despite the fact that many dealers, former executives and people in the industry were interviewed, they almost agreed that Lining was an excellent company. Its brand accumulation, strategic planning, system operation and even strict standards of the company were more suited to the Chinese people's appetite than rival Nike and Adidas in the same period, and also more obvious than the "Fujian Gang" of the later pursuers.

But on the other hand, the interviewees all agree that the messy pace, the swaying of the brand, and the incongenitally inadequate marketing are all giving people a sigh of regret and anger.

Lining himself is also contradictory. On the one hand, it was born and grew up in the mainland, and was deeply rooted in national sentiment by the Chinese people. On the other hand, it has been trying to get rid of the constraints of this regional brand and is committed to creating an international sports brand image, which is an endless glory for the dream of internation oriented Chinese enterprises.

However, when it frequently adjusts the way of take-off and tries to leap the internationalized Longmen, we find that this enterprise always seems to be difficult to sustain. The great strategy is often suspended in the air.

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Over the past two months, interviewed Li Ning Co distributors, former executives, sports brand peers and many others, trying to start from different angles to restore a real and still on the road of Lining.

"I hope the people of the Li Ning Co can give me a statement whether to do or not?" in May 15, 2011, Xu Tailin, general manager of Guangdong Hongda sports company, Lining distributor, told reporters that Xu Tailin was still resentful.

Xu Tailin's resentment began at the end of 2010 by Lining.

In 2010, before the second quarter of 2011, the Li Ning Co once revealed to the media that the company decided to shut down 500~600 stores with poor performance because of the company's decision to implement a strategic adjustment to "value consumption".

However, this information was quickly interpreted as "the Li Ning Co is not well managed and is forced to close its stores".

There is no doubt that Li Ningzheng, one of the leading companies in China's local sports brand market, has been faced with the biggest challenge since its establishment.

The pressure on the distributor to Xu Tailin is more of a suffering.

This pressure is manifold: in June 2010, Lining launched the bid change, which was not a success for him because the sales of Lining's products decreased by about 30% from 2011.

Xu Tailin belongs to the distributor of Li Ning Co integration.

Since 2001, Lining has been selling to Maoming. In the past 10 years, the sales volume of Hongda sports has exceeded 16 million yuan, which is almost second to none in the city of Hong Kong.

Lining products account for about 1/4 of the company's total sales.

Xu Tailin's affection for Lining has been around for a long time.

In those days, he only opened a small shop with an area of less than 70 square meters, which could sell 300 thousand yuan to 400 thousand yuan a year, which helped him complete the original accumulation.

So far, he has 6 stores in Maoming, and each shop has an area of more than 100 square meters.

He missed the state at that time.

The goods are issued by Lining headquarters. Every other stage, headquarters will have information about the special products, and the people who are responsible for the market docking will look very young, but very friendly.

One of Xu Tailin's impressive things was that he bought more than 10000 yuan a year, and he tentatively sought help from Lining headquarters.

Later, when the goods arrive, the money will be in debt.

He felt that Li Ning Co was very kind and wanted to set up Lining with him all his life.

But in the next few years, he didn't feel well.

As a company that established the market position very early, Lining adopted the exclusive distribution of products, that is, distributors will not set up "Lining" brand specialized shops, and can sell other brand products at the same time.

After years of deep ploughing, Lining has more than 129 distributors and over 2000 distributors throughout the country, and has more than more than 7000 outlets nationwide.

In 2006, Li Ning Co was determined to carry out channel reform.

This year, Li Ning Co set up several large areas in the country.

Soon, Southern China district distributor Guangzhou speeding company ran to Maoming to open a store, and Xu Tailin protested.

Lining, manager of Southern China District, came to convene the two sides to coordinate. The final result was that the speeding company promised not to open shop in Maoming. However, the cost of pre opening shop preparation was 110 thousand yuan, which was borne by Xu Tailin.

Xu thought, but still paid, "keeping the market is more important than anything else".

The next 4 years were safe.

But Xu Tailin thought it was not easy to run Lining's products.

As a distributor, he can only pick up the goods on the hand of the dealer at the upper level.

Dealers are very strong. They usually increase their prices by about 8% to 10%.

Selling products, distributors usually sell in their stores, and many times, he can not get goods, can only watch the dealer make money.

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Because of the high price, Xu Tailin did not dare to sell at all. He usually sold only about 70% of the price at a price, while the remaining 30% was his own profit.

But often the goods were not sold out, and Lining's new models came on stream.

After that, they will be asked to clear the warehouse quickly.

Dealers will soon reduce their prices. As the next distributor, Xu Tailin will be caught in a dilemma. No price cuts will be violated by the rules that Li Ning Co must deal with secondhand goods. If the distributors fail to meet the requirements, the distributors will be cut down.

Even so, information is asymmetric.

Almost all his products and information come from distributors.

Products sell well and sell badly. They are stuck at dealers.

Almost everything he wants to sell or not is decided by the distributor.

In September 2010, the dealer Guangzhou speeding company once again came to Maoming to open a shop.

Xu Tailin found Lining Southern China District Office, hoping to get a fair answer. The answer is that dealers have the right to open shop.

Xu refused to take it. He found someone blocking the door.

On the day of the opening of a store, dozens of policemen ran into a confrontation.

In November, Xu Tailin arrived in Beijing, hoping to go to Lining headquarters to ask for a view. However, for a long time at the Li Ning Co gate, he didn't let him in. He felt a bit sad. "After 10 years of Lining, in the end, he found that there was no emotion."

The pattern now is that just one street in his Lining shop has opened 3 Lining stores, and the other two are dealers.

In the past 3 months, the sales volume of his Hongda Company has dropped by 30%.

The clerk of the other side often says, "Hongda's goods are taken from us."

This made Xu Tailin very excited.

Xu Tailin did not want to offend the Li Ning Co. He had a very complex feeling about the brand he had always accompanied with him.

On the other hand, Li Ning Co's "connivance" to dealers is hard to understand. "We can not talk with Li Ning Co at all. Do not know if people at headquarters know the following situation?"

Xu Tailin's idea now is to get rid of the hundreds of thousands of Yuan stock Lining products before the exchange.

"We are also a member of Lining, but we have been ignored."

He felt that he could not find anyone who was responsible for himself.