What Is Lining'S Next Step?

On the stock side, as China's most famous sportswear brand, Li Ning Co is still the largest local sport apparel brand with the largest market share.

However, from an incremental perspective, in the past three years, the performance of Li Ning Co has been inferior to that of other companies in the industry. Following the crowd in Jinjiang's competitors, the development strategy has gradually become clearer. (Anta has taken the professional integrated sportswear clothing brand line, PEAK has taken the professional basketball route, Hongxing Erke specializes in tennis products), and Lining has begun to play the combined boxing. It is worth noting that in the past two years, under the "multi brand strategy" principle of Lining, Li Ning Co has repeatedly made moves, on the one hand, the market has been downwards extended; on the other hand, it has acquired or joint ventures to carry out multi brand operation.

Up there are Nike and Adi, down, the Jinjiang department is expanding, how will Lining go next?? what is the strategic consideration of Lining's acquisition of red double happiness? Guo Jianxin: 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.

The company is a leading industry in the field of table tennis. Its market share is the first, management level, product technology is first class in China, and has a high reputation in the world. It is a partner of the International Table Tennis Federation (ITTF) and will provide most of the equipment for the 2008 Olympic table tennis competition.

The goal of this acquisition is to make Li Ning Co a leader in global table tennis and indoor sports, and to achieve faster growth and greater sales revenue as China's economy develops.

Table tennis has great market potential in China, and the market capacity (including equipment, clothing and shoes) is more than 3 billion 500 million. It is estimated that the annual growth rate of the table tennis market will remain at around 15% in the future.

For the acquisition, Morgan Stanley issued a report that Li Ning Co spent 305 million yuan on the acquisition of table tennis supplier red double happiness. The sales volume of red double happiness in 2006 was 320 million yuan. The acquisition will help to expand its product mix and bring cross selling opportunities to table tennis and footwear products. It is expected that red double happiness will benefit Lining's strong market network and platform.

Merrill Lynch said that although the acquisition of red double happiness made only 5% of its profits, it would be beneficial to Lining's strategic development to bring the famous brands into the bag.

In April of this year, Lining launched the brand of "new movement" which took the supermarket channel. The latter aimed at the middle and low end market. What is Lining's plan for the downward extension of the market? What is the current situation of the "new movement" business? Guo Jianxin: the launch of the "new movement" is mainly due to the consideration of market segmentation.

China's regional differentiation is very big, and consumers' demand for brands and products is quite different in different regions; therefore, we will provide a wealth of product line combinations to meet diversified needs.

"New action" is aimed at supermarket stores. Now it has entered 20 supermarkets, such as Carrefour, Jingkelong, Shanghai Lianhua and Lianhua, and the retail price is between 100 and 300 yuan.

"New move" has exceeded our expectations after listing.

We plan to have 200 sales points this year.

Involving shoes and clothing, and accessories.

This is somewhat different from Lining's brand positioning. So what is Lining's brand positioning at present? Guo Jianxin: at present, we aim to be a high-end professional sports brand.

"Lining" is a brand of sports, a fashionable brand and an Oriental brand. These positioning can fully demonstrate the professional characteristics of "Lining". Among them, "oriental characteristics" is the biggest advantage that distinguishes us from competitors.

In the future, we will do more work on the connotation of these three brands.

The "Lining" core consumer group is 14 to 23 years old: how do you view the current market competition, including the pursuit of latecomers such as the Jinjiang department? Guo Jianxin: we are glad to see a number of domestic brands developing together in this mature market in China. But we are quite different in brand segmentation and market positioning, and the market will be more subdivided.

For Lining brand, we will continue to strengthen our core competitiveness.

At present, we aim to be a high-end professional sports brand.

"Lining" is a sport, fashion and Oriental brand. These positioning can fully demonstrate the professional characteristics of "Lining". Among them, "oriental characteristics" is the biggest advantage that distinguishes us from competitors.

In one book, Lining's "virtual production" mode is mentioned, which enables Lining to be flexible and familiar with market demand and to a certain extent "light assets" operation.

When does this kind of "virtual production" start? How do you implement it? Guo Jianxin: it can be said that "Lining" has been using "light assets" from the day of birth.

Like other famous international sports brands, Li Ning Co now fully adopts the form of production outsourcing, at present, it does not consider its own production.

We have outsourced production to YY2, the world's largest shoemaking company, focusing on areas where products are best - product design, brand marketing, product distribution, and efficient management capabilities, so that investors can see the future value of profits - not simply by reducing the cost, but by enhancing brand value.

In the absence of self production capacity, if we encounter a sudden blowout of a clothing demand or personalized customization, how can we coordinate with the production plant? Will the elasticity of production be weaker? Guo Jianxin: we will advance the coordination of personalized production needs, such as the limited edition.

Internationalization is one of Lining's development strategies.

But according to the 2006 earnings report, Lining's international market turnover accounted for only 0.9% of the total turnover.

At that time, why did such a strategy be formulated and how are its implementation steps? What is Lining's strategic goal in the next stage? Guo Jianxin: sports without borders, if we want to become bigger and stronger in the sports industry, we must show ourselves in the international sports arena and get recognition.

Therefore, since its inception, Li Ning Co has been actively participating in international sports events, and has launched the brand's international sports marketing and display after its strength has been strengthened.

Of course, the exploration of internationalization is also divided into different steps.

Li Ning Co takes the road of first brand internationalization and market internationalization.

At present, we have formulated three strategic stages: the first stage ends in 2008, and the second stage is 2009-2013 years.

In these two stages, Li Ning Co will take the Chinese market as the most important strategic market and predict that the turnover will remain at 35%-40% growth every year.

The 2013-2018 year is the third phase, when Li Ning Co will become the world's top 5 Sports Brand Company.

But China is a highly internationalized market. To a certain extent, China is the world, and the local market is always our most important market.