The Development Of Sports Shoes Industry Should Be "Specialized" And "Bo".

Winning the "red double happiness" has double meanings for Li Ning Co. First, for the needs of Olympic strategy, the two is the need of specialization. "Double happiness" is the top table tennis equipment supplier, while "Lining" is a comprehensive sports brand. "Red double happiness" and "Lining" are the representatives of the two development trends of Chinese sports brand at present. The combination of the two sides is related to the transformation of the sporting goods industry in China. In mid November, the Chinese sports brand Li Ning Co Ltd announced that it had reached an agreement with four sellers at a total cost of RMB 305 million yuan to acquire a total 57.5% stake in the famous table tennis brand "red double happiness". As a sporting goods company listed in Hongkong, Li Ning Co's products have always been known as "Bo", from sports shoes, clothes to equipment, almost everything. However, in the field of subdivision, the fame of "Lining" is not loud. For example, table tennis is not as good as red double happiness, badminton is not as good as yonix, and football and basketball are not as good as Nike and Adidas. On the contrary, red double happiness is already the top equipment manufacturer in the table tennis field, but there are not many others in it. Therefore, when it comes to the acquisition, Lining, chairman of the Lining group, spoke out frankly: "red double happiness has been known for many years for its high quality table tennis products. The acquisition of red double happiness not only shows our strategic goal of becoming a multi brand carrier, but also effectively strengthens the position of Lining group in fast-growing table tennis, badminton and other indoor sports products market. In view of the fact that China has been among the top of the world table tennis and badminton events, the 2008 Olympic Games will further stimulate the Chinese people's love for these two sports. This brings great opportunities to the group. " Lining said that he will seize the new opportunities to make the two well-known brands achieve synergy in various aspects such as brand marketing, marketing, sponsorship, channel optimization and company management, so as to create a synergy effect. In fact, Lining did not explicitly say that the Li Ning Co failed in the struggle for Olympic sponsorship for Adidas, which made the Olympic Games held at its doorstep a stage for competitors. In order to make a breakthrough in Olympic strategy, Lining holding red double happiness is the best choice. To infiltrate professionalism as early as 1961, red double happiness was 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. When the world cup was held in October, the red double happiness 40 mm table tennis ball was used for the first time. As a result, red double happiness has established the leading position in the world table tennis field. Li Ning Co CEO 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, chairman of Shanghai red double happiness, said that 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 may lag behind, and we will be beaten behind. " "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. " According to the disclosure, 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. Double the number of terminals, the sales volume of red double happiness is worth looking forward to. The industry is generally optimistic about the acquisition of the red double happiness, "first, the red double happiness brand will become bigger and bigger; second, maintain the high-end market share, and ensure that the degree of specialization in the world leader." Not only should we be more extensive but also more profound. The footsteps of the Beijing Olympic Games are getting closer and closer. However, Lining, who had been favored before, failed to compete with Adidas for Olympic sponsorship, which made Li Ning Co somewhat embarrassed. The industry has been expecting Lining to fight back. The acquisition of red double happiness is the first step for Lining to fight back. Internationally renowned investment bank Merrill Lynch said that because Lining still has up to 500 million yuan in cash on hand, it is expected that the company will have similar acquisitions in succession. Analysts believe that Lining's acquisition of red double happiness is not only a consideration of Olympic business opportunities, but also a careful calculation after the comprehensive analysis of competitors. As Lining's rival, Adidas and Nike are renowned for their professionalism in all areas they are involved in. Take running shoes as an example. Nike has made running shoes as an art. The traditional fabric and quality are no longer the most important factor for Nike. It is about how to adapt to the feet, terrain, how to protect runners' footsteps and how to improve their speed. This specialization is exactly what Lining lacks, or is in urgent need of improvement. "Mainly complementarity of resources, production of sportswear by Li Ning Co, and so on, 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. Zhang Zhiyong's words confirm Lining's strategy to move forward professionally on a broad basis. The important transformation in the development process has been besieged by brands such as Nike and Adidas. In the past 5 years, the strategy of Li Ning Co is "rural encircling the city". Zhang Zhiyong said: "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 joked that cooperation with Shanghai's red double happiness is one of the signs of Li Ning Co's "re entering the city". Lining has more than 4000 retail outlets in China, and more than 700 of them have many retail outlets. The overseas markets of red double happiness are relatively mature. Europe, Japan, Southeast Asia and the Americas are their traditional stable markets. Overseas markets account for nearly 25%% of total sales, while Lining's overseas market is small and yet to be developed. 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. After the Beijing Olympic Games, the two sides will have a strategic plan for 5 years. Experts say that the success of Lining's "Bo" and the "special" of red double happiness is not only an important turning point of the two enterprises, but also a transformation of the sporting goods industry in China.