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    Brand Remodeling Is Wrong &Nbsp; Lining Expects 400 Stores To Be Closed Throughout The Year.

    2011/8/29 17:38:00 42

    Reshaping Lining

    Li Ning Co is subject to inventory.

    Rebranding

    In the first half of this year, revenue fell by 5%, due to factors such as mistakes and falling into fashion poison.

    "Li Ning Co must pform and hope to give me a little more time."

    Li Ning Co CEO Zhang Zhiyong said so recently.


    In the first quarter of 2012, the order of Lining brand new products was over, the order amount increased by one digit year-on-year, and higher than that of the fourth quarter of 2011.


    Zhang Zhiyong said that after the three consecutive quarterly decline, the volume of orders in the first quarter of 2012 has achieved positive growth. This is a good sign that the reform initiatives taken by Li Ning Co are progressively achieving results.

    He expects that the number of orders will continue to grow in the second quarter of 2012.


    Mistakes in brand remodeling


    At the end of June 2010, Li Ning Co announced that the brand should be rebuilt.

    strategy

    New logo and slogan are released.

    A year later, Zhang Zhiyong admitted that there were some mistakes in the implementation of the brand remolding. For example, the advertising creativity of "post-90s Lining" did not take care of the original consumers. On the other hand, it did not play enough role in attracting the new generation of consumers. The Li Ning Co board of directors was not satisfied with the current results.


    Before the brand remolding strategy was launched, the Li Ning Co consumer survey showed that there was a certain deviation between the actual consumption group of Lining brand and the target consumer group, showing the characteristics of older age. Over 50% of 35~40 years old people, some of them were more sensitive to the price. It was not the best target consumer group for Li Ning Co who wanted to enhance the brand positioning and close the gap between multinational brands such as Nike and Adidas. Therefore, in the new advertising film, Li Ning Co emphasized the concept of "post-90s".


    A senior member of the clothing industry commented on the above practices of Li Ning Co. "Every day, after 80 or 90 years of age, is equal to saying no after 70, so many consumers' hearts are hurt."


    These people believe that the Lining brand has been deposited in China for many years and still has a strong influence. Li Ning Co pformation is carried out in the form of incremental reform. He said: "the old do not move, the brand needs long-term assets.

    In the pformation of the brand, we can precipitate the front and some solidified elements, and at the same time do a series of Li Ningxin products to meet the needs of young generation. "


    These people also said that Li Ning Co currently has "red double happiness", "Lotto" and "Kason" sub brands besides the "Lining" brand. These sub brands should undertake the trial task of brand pformation, and the risk is smaller than that of the "Lining" brand.


    Multi direction adjustment


    Since last year, many sports brands including Lining have increased their prices.

    Insiders said that Nike now has almost 300~400 yuan products in almost every new product, which is almost the same as the price of Lining brand after the price rises, or even lower than that of Lining's.


    In order to regain the price advantage, Li Ning Co began to increase the proportion of low and medium price products in the first quarter of 2012, and increased support for these products in R & D and design links.

    Zhang Zhiyong said that Li Ning Co will enhance the price performance of products from many aspects.


    In addition, Li Ning Co has been adjusting since last year.

    channel

    We should integrate some small and inefficient dealers.

    At present, Li Ning Co has more than 2000 dealers, of which about 1700 dealers, on average, each dealer has only opened 1 stores, many of which are husband and wife shops plus a salesperson. Such a distributor structure leads to a larger deviation in Li Ning Co's policy implementation, further increasing the inventory pressure faced by Li Ning Co.


    As of the end of June, the number of Lining shops was 8163, and 256 were closed in the first half of the year. It is estimated that the total number will be 8300 to 400 in the whole year.

    The company will reduce its store opening plan in the next two years. It is estimated that there will be 8650 in the end of 2012, and 9000 in 2013.

    Factory stores will reach 240 by the end of the year. Factory stores accounted for 10% of total revenue in the first half of the year, and rose to 11% in July, accounting for 15%.


    Li Ning Co has integrated the stores opened by 256 dealers. Recently, the sports brand drug-related case again pushed Lining sporting goods to Feng Tien Lang mouth.

    Lining enterprises predict that by the end of this year, the total number of integrated distributors will reach 400, helping Li Ning Co to restore the stock to normal level in 2012.


     
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