Layoffs And Pformation, &Nbsp; Brand Experts Recommend Li Ning Co Four Breakthrough.

Since early 2012, it was reported that

Under the influence of layoffs, more attention was focused on Lining and his sporting goods.

Reduce performance

In January 19th, Lining released the 2011 performance forecast. After explaining the communication between the group and the capital market over the past year, the situation faced by China's sporting goods industry and the phased challenges of the growth of the group business, it was concluded that the group's finances will be affected in the short term.

The most direct cause is the weak growth of orders and the recovery of some dealers' inventory, which will reduce the annual revenue by about 6-7%.

In fact, the information provided by this performance notice is more than that. The Li Ning Co said that the gross margin was reduced by about 1-1.5% from 47.3% in the previous year, due to the new wholesale discount rate policy and the increase in production costs. The overall cost rate is expected to increase by about 7-8% over the same period last year due to the group's continued or further increase in investment in brand and product human resources. In addition, the subsidy granted by the government will also decrease during the same period.

China

Brand upgrading is already in the firing line.

To this end, in 2010, Li Ning Co began to position its consumers as the post-90s to start the brand pformation.

Transformation is difficult to ensure smooth sailing. In this process, Lining's top management team fluctuated. "Finally, let Lining get into a situation of internal and external difficulties."

Wang Hanwu said, "in addition, the competition pattern has also changed, especially before and after 2008, Anta, which has increased its brand investment, has won the sponsorship of the Chinese delegation in 2012 London Olympic Games. It seems that the change of the clothing LOGO is actually a change in the industry pattern."

Four ways to break through

In order to prepare for the 2012 business opportunities, many companies have thrown out plans. In a public report, Li Ning Co said that in 2012, it will focus on core business, enhance operational efficiency, and carry out organizational change to reduce other expenses other than brand marketing and product research and development expenses, especially lowering daily expenses and improving labor efficiency, so as to improve the net profit margin level.

At the same time, Li Ning Co will also adjust product structure to control procurement costs and increase gross margin.

We should continue to push forward the channel reform, enhance the retail efficiency of the two to four line market, further clean up the retail stock and speed up the cash turnover, so as to "seize the market opportunity of the London Olympic Games and enhance the brand image."

However, Anta, who has achieved sales surpass Lining, is also unwilling to give up the store. It plans to break through 10000 stores by the end of 2011, and is ready to welcome the coming brand upsurge.

The market, peers around the attack, Lining how to highlight the tight encirclement, anxiety breeds rebirth, Wang Hanwu think is not without opportunities, "every field because of competitors, outstanding brand will be more prominent, this is a brand to purify the highest state."

Wang Hanwu believes that, in the first place, Lining should start from four aspects: "the image of brand internationalization should be increased, so that we can get rid of the pace of pursuers.