Lining Was Trapped In "Low Tide" &Nbsp; Anta Wanted To Be A Local Sporting Goods Boss.

The sporting goods industry, which has been in a state of rapid growth, is facing an ordeal. The reason is that over expansion in recent years has led to a slowdown in growth, a large number of stocks and profits, which is the plight of Nike and Adidas in the Chinese market.

But it's also hard to explain why investors are more distrusted. Lining 。 Usually when a disaster comes, investors will be more convinced of those experienced teams, and Li Ning Co, which has been established for more than 20 years, should have provided more security to investors.

It seems that Lining has taken a similar strategy with other sporting goods brands in the past few years: boosting revenue growth through an expanding sales network. By the end of 2010, five sporting goods brands listed in Hongkong had more than 7000 retail outlets.

Why did Lining get more questions? The most direct answer is that the company has never had a good answer on a series of basic strategic issues.

Who am I? Although the Lining brand has a history of 20 years, brand The more famous one is the famous founder. Besides, the brand is hard to give a strong sense of belonging. Lining's earliest brand interpretation is Everything is Possible, which seems to be another version of Adidas's "Nothing is Impossible". Last year, Lining launched the new slogan "Make the Change", which looks more like a company's own appeal than a consumer.

To whom. Lining's initial target consumer group was the 70 group in China. Last year, Lining positioned the target consumers in the post-90s crowd. This is a radical strategy, which directly discarded the 70 and post 80s crowd. But after 90, it seems that they did not buy it. Moreover, Lining's pricing is not clear. The price of its products is 20% to 30% lower than that of Nike, Adidas and other international brands, but it is 35% to 45% higher than that of domestic brands. Do consumers want to buy a product that is neither the cheapest nor the best quality?

What to sell? Last month, I met with a radical Internet entrepreneur. His words about products impressed me: This is an era of products, so long as the products are done well enough, word of mouth can be passed. New technology makes information flow and sharing so fast and convenient. The popularity of SNS website also makes word of mouth become a truly important marketing way. Compared with Nike's legendary series and Adidas's Clover series, Lining never seems to have a classic. In addition, Lining also abandoned football and basketball products as the core and avoided the future in badminton.

How to sell. Retail store is Lining's core channel, but Lining has not distinguished himself from competitors in terms of channel management quality. Morgan Stanley expects Lining to spend only 1 billion 448 million yuan on inventory repurchases in the coming years. Lining claims to have completed the integration of 256 inefficient stores, and by the end of the year will complete the integration of 400 stores, but the company did not change the traditional expansion mode driven by the new store, its strategy is to increase the retail store from about 8000 to 10 thousand in three years.

It is hard to believe that a company with a history of 20 years and two digit growth over the past few years has a series of basic strategic issues. But this is the truth, and the problem of covering up this series is a sober Chinese market. The chief culprit of strategic problems is usually CEO.

But the bigger root of the problem is the founder Lining. He seems to be unable to turn a company that has not reached maturity to a professional manager, Zhang Zhiyong, who is a financial man. CFO background CEO is not uncommon, but the financial origin CEO is more suitable for mature enterprises - brands, products and channels are very stable. At this time, the growth of business performance is more dependent on management, especially financial management capabilities, receivables, and even mergers and acquisitions and capital operation. For Lining, it is obvious that it is in a cycle dominated by products and channels, and can not solve main problems by management and finance. Instead, it requires dreamers to break through all kinds of bottlenecks.

The sporting goods industry has always been extremely competitive. Li Ning Co's inventory decline is still lingering in the wind and waves. This gives Anta an excellent opportunity to catch up.
 

　　 Anta 8 announced the first half results, turnover grew 28.9% to 4 billion 450 million yuan. If annual growth can be maintained for the first half of the year, it is expected that Anta will exceed Li Ning Co this year for the first time to sit on the top of the domestic sporting goods industry.

For the first half of the performance, Anta stakeholders told reporters that although the performance of some individual companies slowed down, but the sporting goods industry still has many opportunities, Nike and Adidas's rapid growth in recent performance has proved this point.

In 2010, Li Ning Co revenue of 9 billion 479 million yuan, such as 2011 income decreased by 5%, will be about 9 billion yuan. Anta's turnover in 2010 is 7 billion 410 million yuan. If the growth rate is 28.9% in the first half of the year, the total revenue in 2011 will exceed Li Ning Co, reaching 9 billion 500 million yuan.

However, Anta is also under some pressure, including cost pressures. In order to reduce the impact of labor costs and other factors, Anta has opened new factories in Anhui, Henan and other places. Half year report shows that in the first half of this year, the cost of Anta production was 2 billion 546 million yuan, compared with 1 billion 943 million yuan in the same period last year, an increase of 31% over the same period last year. By the above factors, the gross profit margin of Anta products was 42.8%, compared with the same period last year, a decrease of 0.9%.

There was a rumor that a large factory in Dongguan, Guangdong, was forced to close down due to tight funding chains. The people concerned were not familiar with the situation of the factory. Besides, Anta's cash flow was no problem, and it would not default on the money of the foundries. The semi annual report shows that Anta's trade and other payables amounted to 1 billion 192 million yuan, an increase of about 120 million yuan compared with 1 billion 71 million yuan in the same period last year. In addition, Anta's cash and bank balances in the first half of this year were 4 billion 373 million yuan, an increase of about 160 million yuan compared with 4 billion 214 million yuan in the same period last year.

The number of Anta brand stores has slowed down. In the first half of this year, the number of Anta brand stores increased by 295 to 7844, and the number of stores increased by 461 in the same period last year. The reduction in the number of stores may slow Anta's performance.

According to industry sources, from Anta's latest quarterly order meeting, the revenue of this quarter increased by 15%, of which 5% came from the growth of sales volume, and the other 10% came from the improvement of unit price. The sustained growth of performance is not a smooth road, including how to enhance the performance of FILA.

According to the introduction, Anta brand is mainly for the consumers of the two or three tier cities in China. Anta also hopes to build its own high-end brand, and it can take a firm foothold in the first tier cities, and the FILA brand has undertaken this task. As of June 30, 2011, FILA has opened nearly 200 stores in the first and second tier cities nationwide, and Anta's annual goal is to open 300 stores.