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    Lining "Sea" Campaign Network Market Odds Geometry?

    2012/1/6 9:59:00 27

    In recent years, Lining, one of the most embarrassing Chinese sports brands in the domestic market, has begun to expand overseas.


    A few days ago, Lining formally launched the Internet in the United States. Sale Business. Although the company has repeatedly stressed that the development of e-commerce in the hairdressing show has nothing to do with the decline in performance, Lining's business is recovering. However, the industry generally believes that Lining's overseas strategy is still forced by the loss of the domestic market. More noteworthy is, with the implementation of the internationalization strategy, Lining's brand nation. color It is likely to fade away gradually. Despite the fact that many Americans do not know Lining's Chinese brand, they are determined to go abroad. A few days ago, Lining's Digital Corporation began to launch online sales business in the United States, mainly selling basketball sportswear, sportswear and women's wear. Running shoes 。 Statistics show that Digital Corporation is a joint venture between Li Ning Co and a brand consultancy and private equity firm in Chicago. In the new company, Li Ningzhan has a 20% share. For sale online in the United States, Lining stressed that the move is just a trial run, and the joint venture company will not be able to invest too much. "Lining's overseas expansion strategy has not changed, and the markets of other countries have not yet begun, but the future will gradually penetrate." Lining, President of Digital Corporation George, said he had hired 20 employees to design a new image for Li Ning Co, aiming to make Americans understand the eastern culture.


    Today, on the Li Ning Co website, a pair of men's running shoes, priced at $80, are made of mesh materials and can "adapt to natural gait". The lotus pattern yoga pants are priced at $55 and are suitable for making "accurate posture." Internationalization strategy has a long history, in fact, in China's domestic sports brands, Li Ning Co has been actively developing overseas "model", especially after the 2008 Beijing Olympic Games, Lining was once defined by the global sports giant as a challenger from China. Lining set up a headquarters in the United States, opened a retail store in Poland, and bought Italy brand lotto. This time, Lining also made careful planning in the US test. According to George's plan, American consumers will be able to contact Lining brand in O'neal's community activities and sporting goods stores. For Lining's electricity supplier strategy, China Consulting Co., Ltd. clothing industry analyst Liang Venlo believes that the electricity supplier network takes into account brand and sales, "cost performance" relative to domestic brands in the NBA "hit" advertising is high. However, there are different opinions in the industry. It is too early for Lining to take this step.


    Internationalization will reduce national color. Many people still remember that in the mid 90s of last century, the image of Li Ning Co was the national team of sportswear, sponsoring many competitions such as gymnastics, diving, shooting, table tennis and so on. In fact, this positioning is also very precise, because at that stage, the national sentiment was unprecedentedly high, and Lining's personal influence was still there. Too many people placed a national feeling on Lining. Lining represents virtually the image of a country. In 1997 and 1998, Li Ning Co's sales volume was close to 1 billion yuan. At that time, the giants such as Adidas and Nike were still quietly laying a foundation and feeling in the Chinese market. Since then, the rising Fujian sports brands are only the grass-roots products that are not too high on the streets. In 2000, Chen Yihong, then general manager of Li Ning Co, put forward the goal of "internationalization". In his view, Lining wandered for years because of the lack of brand appeal, and "need to go out and play a bigger role". Marketing expert Lu Yiqi said that Lining represents the glory of Chinese sports for a time and has been pursued like a national hero. But at the moment, Lining's peak is too far away from consumers. Therefore, even if internationalization has made the brand lose its national color, its advantages outweigh its disadvantages.


    Why did it lose its domestic market? Last July, Li Ning Co suddenly issued a profit warning. According to the current order price, the total sales revenue of the whole year will drop by about 5% compared to the same period last year. At the same time, because of the efforts to increase channel reform and speed up inventory clearance, the net profit margin in the first half of this year will be reduced from 12.9% in the same period last year to 6%-7%. With the news, its share price plummeted 15.77%, a 27 month low. As early as last May, the original COO Guo Jianxin and some key employees also left the Li Ning Co. For a time, the bottleneck of internal development and the external media were condemned. Lining was caught in a crisis. After the earnings warning report was released, Lining, the founder of the company, sent an "employee letter" from Hongkong, China. In his letter, he stressed that "the board and management have reached a consensus on the goal of active change, and fully support CEO and management's implementation plan for achieving the goal of change." Many people in the industry believe that the Li Ning Co crisis is closely related to its brand transformation. In 2005, Lining hired professional agencies to investigate the brand status quo. The survey showed that consumers accounted for 50% of consumers aged 35-45. In order to win the favor of young consumers and expand the consumption crowd, in the third quarter of 2010, Lining positioned the brand consumer group as "after 90". At that time, some experts believe that Li Ning Co's price positioning is not suitable for "post-90s".


    As we all know, the price of Lining products is slightly lower than that of foreign brands such as Nike and Adidas, but higher than that of Anta, XTEP and other domestic brands. Wang Zhiqiang, an independent financial observer, said that most of the "post-90s" consumer groups did not have a stable economic source, but they pursued a new high-end. They either can't afford to buy Lining or simply choose foreign brands such as Adidas and Nike. In addition, at the beginning of its establishment, Lining's position was a professional sportswear clothing brand. However, today's Lining is somewhat unpredictable and keeps swaying between professional and fashion. This can be seen from the spokesperson of Lining's image: O'neal, Lin Dan, Wu Minxia, Powell, Isinbayeva, China badminton team and Chinese diving team. Last March, Lining signed Lin Chiling as his new spokesman. Lining appears greedy, not only to get involved in sports products, but also to build himself into a fashion brand. The result is that if you ask Li Ning Co what products are most prominent, the answer is No. Li Ning Co now admits tactically mistakes in tactics. Lining spokesman Li Wei said: "as the first national brand to eat crab, Li Ning Co has accumulated more experience in its exploration. In spite of setbacks in a short time, initiative growth is always better than passive. "

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