Lining Launches Online Sales In The US And Takes The High-End Line Without Regard To Sales Volume.

In February 2010, the first American retail store of Chinese brand "Lining" was officially opened in Portland, Oregon.

It is reported that in the case of a declining share of the market and the failure of the "one brother" in the country, the Li Ning Co not only did not save money, but made a big surprise -- to open shop in the United States.

According to reports, Li Ning Co is already in.

Before, Lining's pace of internationalization has been everywhere in Europe and the United States. Lining not only sponsored Spain's national basketball team, but also conducted in-depth cooperation with the US NBA superstar O'neal, in order to strengthen the Americans to Lining.

It is said that these shoes are not really cheap.

According to the introduction, a pair of ordinary Lining brand men's sports shoes are about 80 dollars, similar to the price of Adidas and Nike shoes.

Other people are shrinking the front line, but Lining is doing the opposite. Why is it? A pair of 80 dollars sports shoes has no advantage compared with the famous foreign brands. Why does Lining insist on the high price line abroad? The doubts make many people who care about Lining feel confused.

"World company" reporter tried to contact Li Ning Co for an interview, Li Ning Co in reply to "world company" mail, said Li Ning Co's overseas market strategy has not changed.

According to Li Ning Co's strategic plan, Li Ning Co is still exploring and accumulating experience in overseas market expansion.

Through the "digital Lining" company opened e-commerce business in the United States, aims to further explore the United States market and accumulate experience in overseas markets, while Li Ning Co's cost is not high, risk controllable.

Internationalization is Lining's pursuit.

The international standard set by Li Ning Co CEO Zhang Zhiyong to Lining is that overseas parts earn more than 20%, and the internationalization of Lining can be regarded as a success. At present, Lining's overseas contribution rate is less than 5%.

For Lining's international route, sports brand expert Zhang Qing believes that Lining's international route has actually failed.

As far as the United States is concerned, despite the signing of numerous NBA stars, Lining's influence in the US market is still very limited.

Zhang Qing: in 2001, when Zhang Zhiyong just started CEO, he proposed to promote Lining's internationalization. One of the important indicators is that the overseas market's revenue should account for 20% of the total revenue.

The development of this area has not yet been achieved for 10 years.

Some overseas countries can still, but in the United States and Europe, the market is still relatively low.

He signed some big stars, but objectively speaking, he pushed the domestic market more vigorously.

Zhang Qing believes that the establishment of an online shopping mall in the United States of America may not care much about the sales volume, but also mainly set up a sales platform to break through the restrictions on sales channels under the US line.

Zhang Qing: in the United States and Europe, brand marketing channels are relatively standardized.

A new brand wants to enter the market. On the one hand, it has obstacles from ADI, Nike and local brands. On the other hand, most of the local channels are mastered by these brands.

Lining wants to enter, perhaps through the Internet, can break the boundaries of the region and increase a way of distribution.

If it was 3 years ago, the Li Ning Co's wanton expansion would probably win a great deal; but Lining now has to question the correctness of its overseas expansion.

According to its first half financial report, although Li Ning Co's turnover of HK $9 billion 400 million was ahead of HK $7 billion 400 million of Anta sports, Anta's HK $1 billion 550 million was far more than Lining's HK $1 billion 100 million in terms of group profits, and the position of "one brother" in Lining was replaced by Anta.

In fact, Lining's first half performance decline is not unexpected.

Since last year's drastic strategic pformation, Lining has been undergoing severe tests, such as declining orders, falling stock prices, resignation of senior executives, and company earnings warning.

It is no exaggeration to say that Li Ning Co has hardly heard good news since 2011.

In recent years, sports brand competition has long been hot.

The "Fujian Gang" headed by Anta, XTEP and PEAK suddenly rose. They quickly completed the coverage of the important two or three line market of Lining in the way of franchised stores with the spirit of grass roots swept by the autumn wind (micro-blog).

Anta and other stores operate flexibly and take footwear as an example. Their prices are usually below 250 yuan, and most stores are directly managed by headquarters. They can react quickly to the market. Lining's shoes cost about 35% more than that of ANN.

In the first tier cities, under the strong pressure of Nike and Adidas, Lining can not avoid a positive battle.

Lining's price is usually about 10% lower than that of Adidas and Nike. In the first tier cities, Lining's brand influence and the price difference of 10% are usually an awkward limit.

Against this background, Lining still goes his own way to increase investment in overseas markets. Will the long growth distance leave Lining in a dilemma of domestic failure and internationalization?