Lining Of China'S Nike World

Nike, with the prestige of the world's first sporting goods brand, dropped its shelves and chose the Indigenization of localization when it entered China. Lining held the brand interest of the national hero, but quietly started his own international journey when the world's top rivals gathered in China.

In January 1993, when a small Nike dealer opened a shop in Shanghai, hundreds of people began to queue up from dawn to see that they were the first lucky ones to have such an American star product. At this time, the 3 year old Li Ning Co had only a seemingly successful starting point relying on the unique personal charm of the founder and the patriotic passion of the country.

In 2004, the growth rate of Nike in the Chinese market reached 66%, and more and more Chinese put on Nike. In the same year, the turnover of Lining also increased steadily, reaching 1 billion 878 million yuan.

Over the past 10 years, Nike has made efforts to promote its localization strategy in the Chinese market, starting from the most basic target consumer group. Despite many setbacks, it is still unyielding. After more than 10 years of development, Lining became the first sporting goods brand in China, but began to brand internationalization in full swing.

One is China's local boss, one is the world's oldest, and two enterprises of different orders of magnitude are locked in the Chinese market, and they all want to win.

But the fire between the two eldest did not happen, instead of an unexpected safety car.

Grass root penetration and dress dream: Nike: Grassroots penetration of international brands. Sports crowd has a rule. At the top of Pyramid is a national sports team, followed by professional athletes, then sports enthusiasts, and the bottom is ordinary consumers.

In accordance with this rule, Nike has established a Pyramid promotion mode, whose core is "to stimulate the mass market with professional sporting goods market".

Nike founder Peter knight has a dream: "China has 2 billion feet, we want them to wear Nike!"

To this end, Nike dressed itself as a lifestyle promoter.

In other words, Nike does not sell shoes, only marketing emotions.

Nike donated money to many secondary schools in Shanghai so that students could play basketball in school playground after school.

Such moves quickly got the Chinese response: Nike's sales increased by 60% in a year.

With the rise of the middle class in China, the Chinese people's desire for freedom and individuality is becoming more and more intense.

Nike, who sells culture and marketing sentiment, just takes the lead.

In 2004, Nike's sales in China increased by 66%, or about US $300 million.

In addition, Nike stores expand in the Chinese market at a rate of 1.5 per day.

However, in the Chinese market, Nike still encountered an unavoidable embarrassment: its main sales performance came from the economically developed areas in the East.

For Nike, it is a matter for them to consider how to play a good "infiltration" in the economically underdeveloped areas of the central and western regions.

Lining: local hero's dream of dress dream, Li Ning Co has a good start in Chinese market.

In the early stage of its business, its annual growth rate remained above 100% for a long time. In 2001, when its annual sales volume reached 700 million yuan, Nike only had 300 million yuan, while Adidas only had 100 million yuan.

From 1997 to 2002, Lining kept China's market share for the first time in 6 years.

Under the background of economic globalization, the competition in the Chinese market is becoming more and more intense. The Li Ning Co has realized that if we want to become the number one in China, we must become an international brand.

To this end, Li Ning Co has identified internationalization and specialization as its strategic goals, and has formulated strategies for internationalization of the brand and internationalization of the market.

In order to cooperate with the brand internationalization strategy, in the second half of 2003, Li Ning Co resolutely shifted its brand promotion axis to the high-end professional sporting goods market, and the brand promotion target eye also turned to the national sports team.

This undoubtedly puts forward higher requirements for its specialization.

In fact, Li Ning Co has already embarked on the road of specialization: in 1998, the company established the first product design and Development Center for clothing and shoes of local companies, and became the first Chinese sporting goods company to develop independently. In 1999, it co operated with SAP company to introduce AFS clothing and footwear solutions, becoming the first sporting goods enterprise in China to implement ERP.

Since 2004, Li Ning Co has launched a series of professional football, basketball, tennis, running and other products. According to the evaluation results of Chinese University Hong Kong, these professional products in various technical indicators, compared with the top international brand products, and even many key indicators even better than the top international brand products, so it has been widely recognized and welcomed by professional athletes and consumers.

In the spring of 2005, the RunFree series super light running shoes, which have just been launched, have been selling well all over the country.

The professionalization of the international brand image will undoubtedly further enhance the competitiveness of Lining's products.

In 2004, the annual sales of Lining series products reached 1 billion 878 million yuan.

At the same time, its authorized stores have reached more than 1000 stores, with nearly 3000 sales outlets.

In 2004, Li Ning Co was officially listed on the stock exchange of Hongkong. It is the first sporting goods company in China to carry out IPO.

After listing successfully, Li Ning Co can no doubt be more firm and more relaxed on the road of specialization and internationalization.

Comment: if you want to be an international brand, you can not achieve this dream only by "made in China" product image.

Lining, who entered the high-end market, did not feel obvious "acclimatized". Its "Nike style" promotion tactics successfully suppressed the rapid development momentum of Nike and Adidas in the high-end market, and also took advantage of the second tier "stubborn" forces such as Anta and Reebok.

Obviously, this beautiful "kite turned over" is remembered by investors.

Lining came from the aura and fog of sports star company, but it was difficult to reach maturity.

The essence of competition between local sports stars vs international team and enterprises and enterprises is, from a certain angle, the competition between people.

The difference between Nike and Lining in employing principles is the real reason for the different styles of the two enterprises.

Nike: sports fans, sports business executives, 40% of Nike employees are less than 30 years old, and their day's work is arranged at noon: they spend 2 hours in the sports and leisure center on campus, and then work till evening.

Nike's location, like campus, has forests, jogging paths, lakes and soccer fields.

The founder of Nike, Nate, hopes to create a peaceful working environment. He thinks the world is chaotic enough. Working hours should be as free as home.

When he talked about his employment principle, he said: first of all, love sports, and then break the rules of business practices.

It is the use of many employees who really love sports, so Nike can accurately understand and understand the laws and opportunities of the development of sports industry, thus making a lot of products and publicity positioning that will affect consumers.

According to custom, Nike has hired many retired professional athletes as professional managers in China to provide professional services for athletes.

Li Tong is such a typical example.

As the first athlete to sign Nike in China in 1981, he is now the manager of Nike marketing department, which is responsible for the association between the company and the national track and Field Association.

Nike's successful signing of Liu Xiang and its use as an advertising spokesperson is a great effort to introduce Li Tong to his eyes.

Nike's advertising film with Liu Xiang tells all Chinese people: "Nike knows what you are proud of!"

This should be the best summary of the localization strategy of Nike.

Lining: international pformation of the team, as a fast growing local company, in the past 15 years, Lining has not only enjoyed the rapid development of happiness, but also experienced various pains.

Being restricted by the slow development of China's sports economy, there is a serious shortage of talents who are familiar with the industry and familiar with the profession.

Therefore, the introduction of mature professional managers through international baptism has become the only choice of Li Ning Co.

In the Li Ning Co, there are strong professional managers from Coca-Cola's channel construction and terminal construction. There are professional managers from Baleno's store management and mature retail formats.

In the field of finance, human resources and so on, Li Ning Co has also invited 4 executive level cadres with over a million salaries from abroad. They come from different sectors.

In addition, Li Ning Co also actively collaborated with international companies in various fields: hiring the world famous Leo Bnna company to help draft a new brand recognition plan; hiring PWC, the world's largest professional service organization, to make the overall strategic plan of the company, focusing on how to prepare Li Ning Co in 2008; introducing international investment companies including Singapore national investment company to promote the company's international management thinking; and employing France Paris Peregrine as a financial adviser.

Since then, media reports that Li Ning Co is making up 186 million pounds (2 billion 650 million yuan) for its acquisition of UMBRO, an old British sporting goods company.

So far, Li Ning Co has basically completed the formation of an international combat vehicle.

Comment: Ma Yun of Alibaba also acted like Lining. Later, he described himself as putting the Boeing 747 engine on the tractor. As a result, the tractor almost collapsed.

Fortunately, Li Ning Co did not produce such a result.

Nike can rely on one's own efforts to promote the localization of the Chinese market. However, the Li Ning Co, which is under tremendous pressure of survival, must realize its internationalization by means of various external forces.

Education background: Bachelor of business administration, University of Oregon; Bachelor degree in business administration; Stanford University; MBA; Peking University; law school; Peking University, 1964; the establishment of blue ribbon sports company in 1964; renamed Nike in 1990; establishment of Lining brand; 2004 2004 business income of $13 billion 700 million (Chinese market $300 million); listing time of 1980; 2004 1980; advertising theme JustdoitIcan; everything is possible to develop vision; business income surpass 20 billion US dollars; become the world's leading sports brand; enter into the 5 place of global sporting goods; the largest sports brand in the world; China's largest sports brand leader, the leader of the world's largest sports brand, wants to defeat Nike, and the only way to overcome Nike is to imitate us in a comprehensive and accurate way, and then find out different points to break down one by one. JustdoitIcan Philip, Li Ning Co founder, Nike NAT Lining, before the start of the business.

Although Nike is the number one in the world, it is not necessary for us to develop according to its mode.

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