After The Crazy Expansion, The Local Sports Brand Is Facing A New Cycle.

　　 Lining The company, once the eldest of the sporting goods industry in China, has been the sponsor of the Chinese sports team and sporting goods for a time in China because of the special relationship between its founder Lining and national sports. industry In the position of the boss, he has trained a group of loyal fans.

At the opening ceremony of the 2008 Beijing Olympic Games, Lining, as the last torch bearer, personally lit the main torch on the bird's nest. The burning Olympic flame also pushed the performance of the Li Ning Co to a new height, and it also ignited people's sports to China. brand Sprint the hope of the whole world.

However, over the past 3 years, the performance of Li Ning Co has not improved significantly, but the slide has gradually emerged. At the beginning of this year, Li Ning Co was not only sold by Anta, another domestic company, but also a number of its top executives resigned. The company had to lay off workers in order to save costs.

　 Layoffs storm

The brilliance of the Olympic flame in Beijing is still vivid, but for the Li Ning Co, it is still experiencing various difficulties. Just after the Spring Festival, Li Ning Co announced layoffs to reduce staff costs.

According to Li Ning Co, in order to improve operational efficiency and improve net profit margin, some non core business departments, such as sub intelligence departments of sub brands, should be optimized by way of organizational structure to reduce personnel costs and invest resources into the core business of the group. In addition to streamlining personnel, integrating resources and motivating excellent employees is also an important way for the company to improve operational efficiency. In addition, Lining also stressed that the direction of its strategic development will not be changed due to the structural adjustment of sub organizations.

The adjustment of general staff is unavoidable, and the top executives of Li Ning Co are also in turmoil. In the short span of two months, Li Ning Co's human resources, information technology, strategic development, and international market The departmental general managers have left one after another. It is reported that the company CMO Chen Jijun has also left. Chen is the third chief marketing officer of Li Ning Co. Since last year's personnel shock, Li Ning Co executives have left at least 5 people.

Personnel adjustment is only one of the big actions of Li Ning Co, and other actions of the company are quite interesting. Layoffs Before the release of information, 750 million yuan strategic investment was announced. For this series of actions, Li Ning Co's response is: active change strategy step.

Changes have to be carried out as soon as possible. According to Li Ning Co's performance forecast, group revenue in 2011 is expected to decline by 6% to 7% compared with 2010.

In addition to earnings warning, Lining has to face both internal and external environmental pressures. On the one hand, there is a large stock phenomenon of domestic sports brands. Dealers have revealed that after a new quarter of 2012, the inventory will be the focus of 2012, and the proportion of the brand's channel inventory will continue to rise in the fourth quarter of 2011.

The stock of Li Ning Co in the first half of 2011 was 992 million yuan, while the stock amount at the end of 2010 was 806 million yuan, and the stock amount increased by about 200 million yuan.

On the other hand, the pace of international brand sinking and the price of Pro democracy has not been relaxed. In the stores of Nike and Adidas, the price of 300~400 yuan is very common, and the selling price is even cheaper in online stores. They gradually occupy the share of domestic sports brands such as Lining in the low-end market, and also push the domestic brands such as Lining and Anta to have to make changes. {page_break}

　 Change unbecoming first

"Lining should have foreseen the bad market environment for 2012." Shoes and clothing industry expert Ma Gang pointed out that Lining's measures are more to cope with the difficulties of 2012.

In fact, in order to achieve further development, as early as 2010, the Li Ning Co began to brew and implement changes.

In order to cooperate with the global market expansion, Li Ning Co began to replace the new LOGO in the third quarter of 2010. The product involved all the product lines of Lining sports shoes, clothing, accessories and ball games. At the same time, the global Lining store and enterprise VI will use the new logo.

The purpose of Li Ning Co is to change its image in the eyes of consumers, and gradually move closer to the high-end sports brands such as Nike and Adidas, and get rid of the image of the middle and low end. After all, in 2009, Li Ning Co's sales revenue of nearly 8 billion 300 million yuan ranked second in China's sporting goods industry. For the first time, it surpassed Adidas and became Nike after a slight disadvantage.

The growth of market share and the pursuit of China's other sports brands such as Anta have made Li Ning Co more vigilant in times of danger and implemented reforms at its peak. However, some people in the industry still believe that Li Ning Co's reliance on the traditional extensive operation mode of "store" is difficult to change rapidly. It can be maintained for a while when the funds are abundant and the competitors are few. Once the economic situation is bad and the competitors increase, then the road will no longer be maintained.

The situation of Li Ning Co is only a typical representative of Chinese sporting goods enterprises. In China's sporting goods industry, it is not just Li Ning Co, but PEAK, XTEP, 31st, Anta and other domestic sports brands are also facing similar problems.

According to the insiders, the expansion track of domestic sports brands can be summed up, not only by the east wind of the Beijing Olympic Games but also by a wave of Hong Kong listing, and sufficient capital is even more powerful for enterprises. However, behind the crazy expansion, there are many problems, such as scale growth decline, high market concentration, high inventory and so on. Li Guangdou, a Brand Strategist, said: "at present, the predicament faced by local brands is that" there are strong enemies before, and then there are soldiers. "In the case of severe homogenization of products, local brands did not grow well after the Beijing Olympic Games.

The pressure of cost also makes the domestic sports brands have to consider the price increase: on the one hand, the unavoidable cost factors; on the other hand, enterprises are gradually replaced by "open shop + raise price" by the simple extension way of the original development channel, and the profit driven mode will also be changed from the original "volume and price increase" to "price increase".

According to the industry analysis, sports brand enterprises are facing not only the homogenization competition pressure of the same industry, but also the extrusion of the leisure industry market. "The Li Ning Co announced that it was only the first Domino to start layoffs, and the layoffs of other sports brands will start." Domestic clothing consulting experts Shao Ligang said.

The industry generally believes that after the crazy expansion of the local sports brand is now facing a new cycle. The two giants, Nike and Adidas, which are high premium brands, firmly control the high-end market of domestic sports brands. How to deal with the tendency of "brand foreign consumption" by local brands and break through in the white hot competition pattern is a proposition for enterprises to think about.

　　 Mirror inspection of domestic brands

In regard to the recent personnel organization adjustment of the company, Zhang Zhiyong, chief executive officer of Lining group, believes that in the process of facing the transformation of China's sporting goods industry and the initiative of the group, in order to cooperate with the group's transformation and strategy implementation, it is a necessary step for the group to make continuous organizational changes and personnel adjustment.

Deutsche Bank's research report believes that the adjustment will help to enhance the long-term competitiveness of Li Ning Co. Under the current low net profit margin, the cost optimization of staff will help to improve the net profit in the future.

Compared with the rapid change strategy of Li Ning Co and personnel adjustment, many other sporting goods companies such as Anta, PEAK, and other people's sporting goods companies will also encounter difficulties encountered by Li Ning Co. For them, early preparation for market needs can be paid at a lower price than that required at night. "Lining is the leading brand in the industry, and in some respects he is the trial and error man and Pathfinder of the industry, which can make the latecomers avoid some similar mistakes." Shoes and clothing industry expert Ma Gang said in an interview with the media.

Some people in the industry believe that at present, there are many sports goods companies in China, and homogenization is serious. If we want to survive and develop, we must find our reasonable position and avoid others' advantages so that we can avoid failure.