Where Is The Li Ning Co Wrong?

Before and after the 2008 Olympic Games, the development of Li Ning Co has reached its peak. Since then, it seems that it has begun to go back to the word, and problems are repeated: the decline of performance, the fall of share prices and the departure of core personnel.

Not only does the new target customer "90 generation" do not buy it at all, even the original "70 after" and "80 generation"

Based on years of management consulting experience and years of tracking and understanding of China's manufacturing industry, the author believes that there are three main reasons:

1, the law of enterprise development

When enterprises develop to a certain stage, there will be some crises, such as "leadership crisis", "autonomy crisis", "control crisis", "big business disease", "development crisis" and so on.

This is normal from the law of the development of enterprises, including some very excellent enterprises, such as Lenovo Group, in the early 90s, there was a crisis of autonomy. At that time, a number of main branches of the company, under the direction of Sun Hongbin, put forward independent demands.

Later, under the strong pressure of Liu Chuanzhi, the rebellion was put to rest, and the rebel leader Sun Hongbin was sent to prison.

Li Ning Co has been out of the boat for 20 years, and it can not escape the natural law and crisis.

This crisis should belong to the "development crisis".

This is a serious situation in the process of enterprise development. Generally, it is a difficult situation caused by larger problems in the development strategy of enterprises.

HUAWEI, Lenovo and TCL have had similar experiences.

In the face of this situation, we should first understand that it is a natural law. Then we should set our mind to consider and review ourselves through the help of ourselves or external forces, find the root of the problem, and find out the way to solve the problem.

As long as the problem is identified and solved, it is not impossible to tide over the difficulties of enterprise development.

2.

The brand positioning of Li Ning Co gives people the impression that ups and downs are wobble.

For example, in the sports brand, positioning itself in the high-end market or the middle and low end market? Lining obviously wants to position himself in the high-end. However, the positioning of high-end must directly face the police officer from the international brand. When the accumulation and strength of the company have a big gap with their competitors, the risk of direct competition will become very high.

In terms of customer positioning, there are similar problems.

Through a variety of surveys and actual operation results, Li Ning Co's customer base is mainly 70- 80 after generation of people, but Li Ning Co can not recognize this, we must strive for a new generation of post-90s generation, and to spare no effort to change the standard, but unfortunately, it has not been recognized by the market.

Brand positioning is a crucial link for consumer goods enterprises.

The practice of the general enterprise is extremely prudent, once the location is fixed, it will remain unchanged.

Like the international brand Nike and Adidas, they are always positioned in the high-end market, and Anta is very much positioned in the middle and low end.

Such relatively stable market positioning has played a great role in their market success.

According to our research on customer market segmentation, American Pulte companies are exemplary in this respect.

As a real estate company, the company divides customers into first home buyers, single Ding Ke, double Ding Ke, baby couples, single parent families, empty nest families, active elderly people and so on.

With such meticulous research as the basis, the products developed in a targeted manner will certainly bring the success of the market.

These excellent market positioning research methods are especially worth learning and learning from Chinese enterprises.

In contrast to these cases, Li Ning Co is obviously a lot more rough.

On the one hand, it wants to locate in the high-end; on the other hand, it does not come up with a series of high-end positioning practices.

These are perhaps the most important issues in Lining's brand positioning.

3, channel problem

Channel is another important pillar of consumer goods enterprises.

International large traders or brand manufacturers have different strategies in this regard.

The traditional way of outsourcing is to distribute the sales links to the channel managers by way of distribution.

But in recent years, some big brands began to establish their own marketing channels, and even some of the brand manufacturers originally did large stores. After controlling a large number of sales terminals, they turned around to make brands.

The core issue is how to look at the sales link in the industrial value.

Li Ning Co chose outsourcing on this point.

This choice is one of their judgments. At the moment, it seems that there is no right or wrong.

But even if outsourcing is done, the distribution strategy should be carefully formulated, rather than swaying.

In this regard, the Li Ning Co's practice is worth reviewing.

For example, how to balance and coordinate interests between distributors and distributors, Li Ning Co dealt with relatively rough, so that some of the original highly loyal distributors sad: "after 10 years of Lining, in the end, I found that there was no emotion."

Compared with the Li Ning Co's more confused distribution strategy, Anta's main competitor, in this regard, appears to be very disciplined and well prepared.

In order to build its own channel in the future, Anta invested and established the Shanghai frontline limited company in 2006, and entered the sporting goods retail industry in an all-round way.

At present, Shanghai frontline Co., Ltd. has set up 5 wholly owned subsidiaries in Xiamen, Suzhou, Beijing, Harbin and Guangzhou to operate Adidas, Reebok and Kappa products.

Anta's move is designed to adjust its business model, and its strategic intention is to pform from traditional production enterprises to retail channels.

Anta used 37 distributors as its core to spread its network to the two or three market.

Now Anta hopes to build its own distribution channel with some high-end brands, its ultimate goal is to build a sports city network, and further integrate its resources through these networks in the future.

We must say that this strategy is very strategic.

They can take such a big turn to invest in building marketing companies, sell high-end products of others, establish brand images among consumers, and then consider selling their products.

At this point, Li Ning Co loses more than just a little bit.