China'S Sports Footwear Brand Is Very Olympic.

Domestic famous sports brands continue to accelerate the pace of integration. Why did Li Ning Co share price rise?

Last Wednesday, sitting in the office of the Huangpu River, Li Ning Co CEO Zhang Zhiyong faced the problem raised by our reporter.

Just a few days ago, Li Ning Co Ltd (2331.HK) just announced that it would buy 57.5% stake in Shanghai red double happiness Limited by Share Ltd with 305 million yuan.

Under the background of the 2008 Beijing Olympic Games, the acquisition of Li Ning Co is considered to be a struggle for the domestic sports brand.

Zhang Zhiyong smiled when he heard the question.

Also smiling, Huang Yongwu, chairman of Shanghai red double happiness, and his assistant Lou Shihe.

Last Thursday, when it came to the acquisition of 57.5% of the shares, Huang Yongwu said with a loud voice: "because both red double happiness and Lining want to build a world brand!"

Dao Dao Dao, extraordinary Dao.

The Olympic Games of China's sports brands have opened up a lot of scenes.

1 Lining's stock performance is quite calm. The pace of Beijing Olympic Games is getting closer and closer.

When Adidas fully took over the Beijing Olympics, Li Ning Co was a bit embarrassed.

In the industry, competitors have been watching to see what actions Li Ning Co has.

The news of the acquisition of Shanghai's red double happiness immediately shook the Quartet.

Merrill Lynch, Morgan Stanley and other international investment banks have been optimistic about this paction, think it will stimulate Lining stock rise.

Da Mo said, maintaining Lining's "holding" investment rating.

In 2006, the sales volume of red double happiness was 269 million yuan, and the net assets yield was 16%. The acquisition helped expand its product mix and brought cross selling opportunities to ping pong equipment and footwear products. It was expected that the red double happiness would benefit Lining's strong market network and platform.

Merrill Lynch maintains that Lining's "buy" rating is maintained.

Merrill Lynch believes that the acquisition of red double happiness although the profit only contributed 5%, but the introduction of well-known brands in the mainland, will be conducive to Lining's strategic development.

As Lining still has up to 500 million yuan in cash on hand, it is expected that similar acquisitions will take place in the company.

However, under the positive stimulation, Lining stock did not rise sharply, and even appeared "lose the market" situation.

In this regard, Zhang Zhiyong believes that Li Ning Co shares belong to "risk aversion" stocks.

"When we have good news, we will not go up, step by step..."

2, what should we take to combat Nike Adidas's massive entry into the Chinese market in Nike, Adidas and other international brands? Investors are cautiously optimistic about the prospect of cooperation between Li Ning Co and Hong Kong and Shanghai.

But Zhang Zhiyong is still optimistic about the acquisition.

"The key is complementary resources.

Li Ning Co produces sportswear, and red double happiness is the leading table tennis equipment manufacturer in China.

In Chinese sports consumption, table tennis is ranked fourth.

If Lining does not cooperate with red double happiness, it will be more difficult to restart in the field of table tennis.

Under the siege of Nike, Adidas and other brands, the strategy of Li Ning Co in the past 5 years is "rural encircling the city".

Zhang Zhiyong said that when he became a Li Ning Co CEO 5 years ago, he wanted to understand this problem. In such a big place in China, there must be a local sports brand.

"We must promote the local brand culture with the vision of the world.

Nike and Adidas can take the first tier cities, but they may not be able to reach the prefecture level and county-level cities, which will give Lining brand a firm foothold.

Huang Yongwu has jokingly told Zhang Zhiyong that cooperation with Shanghai's red double happiness is one of the signs of Li Ning Co's "re entering the city".

In this regard, Zhang Zhiyong agreed.

In the context of the Beijing Olympic Games, Li Ning Co and the opening ceremony director Zhang Yimou are facing the same problem: how to use the Chinese "food" to make world class "taste".

3 "Lining + Red Double Happiness" joint means to talk about red double happiness, domestic table tennis fans almost nobody knows.

Since 1961, red double happiness has been approved by the International Table Tennis Federation as an international competition ball.

In 2000, the International Table Tennis Federation declared that the standard of red double happiness should be adopted as the international standard through the reform of the table tennis ball, and the red double happiness 40 millimeter table tennis ball was used for the first time in the October World Cup.

As a result, red double happiness has established a leading position in the world table tennis industry.

Zhang Zhiyong said that the two sides are "like-minded" in acquiring shares of red double happiness.

"In China, table tennis is a national sport, the most favorite sport for Chinese people, and the best place for local culture."

According to the plan of cooperation between the two sides, by April next year, a clear strategy of "Lining + Red Double Happiness" brand will be launched.

During the Olympic Games, Lining will sell the products of red double happiness in the flagship stores of 6 Olympic cities.

In some cities, there will be a caravan tour between Lining and the red double happiness brand.

In addition, Wang Liqin, Wang Hao, Ma Lin, Wang Nan, Xia Xuanze, Gong Ruina and other star resources under the red double happiness will contribute to Lining brand.

After the Beijing Olympic Games, the two sides will have a strategic plan for 5 years.

4 red double happiness goes to battle lightly, so why is red double happiness?

Why is the red double happy willing to become the Li Ning Co's "indirect non - wholly owned Affiliated Companies"?

Zhang Zhiyong said that Li Ning Co spent 305 million yuan, "half bought brands, and the other half is optimistic about the experience and maturity of the red double happiness management team. I believe that through cooperation, we can truly internationalize table tennis."

Huang Yongwu's assistant Lou Shihe disclosed the details of the acquisition to reporters.

Li Ning Co bought 57.5% of the shares of red double happiness, which originally belonged to private financial investment enterprises participating in Limited by Share Ltd.

"This means that the brand of" double happiness "is not as vanished as some people think.

On the contrary, red double happiness goes all the way to better develop high-end market products and strive for more specialized equipment suppliers.

Huang Yongwu said the sale of shares was a landmark capital operation in the history of red double happiness.

"Over the years, red double happiness has always wanted to build world-class brands.

As a domestic brand and facing the Olympic Games, if we do not move, we will probably lag behind and be beaten. "

"Red double happiness must go out of its own way, truly create international sports equipment brand.

In Beijing Olympic Games, red double happiness is the Olympic designated equipment supplier of table tennis, badminton and weightlifting 3 items.

This advantage is surely what Li Ning Co sees. "

Red double happiness revealed that next step, Li Ning Co will provide 1400 of its more than 4000 stores as the sales terminal of the brand.

Prior to that, all sales outlets for red double happiness were just over 700.

1 times the number of terminals at a time, the sales volume of red double happiness is worth looking forward to.

As the leader of red double happiness, Huang Yongwu made clear the development trend of "double happiness" after the acquisition.

"First, the brand of red double happiness will become bigger and bigger; second, we must maintain the share of the high-end market and ensure that the degree of specialization is ahead of the world."

News background red double happiness and Lining's resource athletes and sports resources: red double happiness is the International Table Tennis Federation (ITTF) partner, long-term for the Chinese table tennis team, China Youth Badminton Team, China weightlifting team to provide comprehensive professional sports equipment and services, brand representative people including ping-pong and badminton super class athletes, such as Wang Liqin, Ma Lin, Wang Hao, Wang Nan, Xia Xuan TSE, Gong Ruina.

Competition resources include the world table tennis championships, World Weightlifting Championships, badminton world cup and 2008 Olympic Games.

Lining is a partner of the international men's Professional Tennis Federation (ATP) and the Olympic team of Spain and Sweden. He sponsored China's national gymnastics team, diving team, table tennis team and shooting team. It provided sports equipment for the 2008 Olympic Games for Argentina, Spain national basketball team, Tanzania national athletics team, and so on. The brand spokesperson included O'neal and other sports stars.

Product resources: the products of red double happiness belong to sports equipment, table tennis, badminton and weightlifting are three pillars, including foot basket volleyball and so on.

Lining products belong to sportswear and footwear.

Sales market resources: Lining has more than 4000 retail outlets in China, and more than 700 pairs of red double happiness, many of which are not retail stores.

Red double happiness overseas market is relatively mature, Europe, Japan, Southeast Asia and the Americas are traditional stable market, overseas market accounts for nearly 25% of the total sales, Lining overseas market is small, yet to be developed.

Related link red double happiness investment evolution roadmap 1995 Shanghai table tennis factory, Shanghai table tennis factory, Shanghai sports equipment factory, Shanghai sports equipment three factory 4 enterprises merger, set up Shanghai red double happiness sporting goods General Factory, registered capital is about 20000000 yuan, book profit 570 thousand yuan, at the end of 1995, established the Sino foreign cooperation Shanghai Shanghai double happiness Guandu sporting goods Co., Ltd., foreign capital accounted for 30%, state assets accounted for 70%, net assets 64 million yuan, net assets yield 0.9%.

In 2005 8, the Ministry of Commerce approved the establishment of the Shanghai red double happiness Limited by Share Ltd, which accounted for 33% of state assets and 67% of private enterprises.

Red double happiness has successfully implemented the "shareholding system" pformation, with net assets of 128 million yuan and net assets yield of 14.7%.

In November 2007, Li Ning Co invested 305 million yuan to become the largest shareholder of holding 57.5% of red double happiness group.