Lining Was Accused Of Reducing The Cost Of &Nbsp By Selling Shares And Closing Prices To ADI And Nike.

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　　 Lining Can't wait any longer.

Crazy growth brings bad results.

In February 3, 2012, Lining announced layoffs. It was only a spring festival holiday when Lining had sold 750 million of convertible bonds to TPG (Private Equity Fund). According to Lining's official statement: through organizational restructuring, personnel reduction and cost reduction, business efficiency will be improved.

Lose industry First, why did Lining adjust the pace of operation until this year? Can layoffs solve Lining's comprehensive problems? Is it better than other local sports brands in the days of Lining?

　 The price of madness

After being pulled down by Anta last year, Lining tried. brand Remodeling and channel reform, but no actual results. It is estimated that revenue in 2011 will decline by 6% to 7% compared with 2010, and inventories will increase by 200 million yuan over the end of 2010. It can be seen that Lining expanded the risk of inventory.

But through layoffs alone, Lining can not help solve the core problem. For Lining, the most common view is that, because of the early change of bid, the 70 of the former main consumer group and the 80's are replaced by the 90 generation that has not yet formed the climate. But this is not the core issue. The key is Lining's extensive expansion model from 2008 to 2011.

In 2008, with the help of Lining in the Beijing Olympic Games shocked the global ignition ceremony, Lining surpassed Adidas in the year to become an industry champion. This wave of "policy trend" continued to support Lining until 2009. But after the end of the fiscal year of 2010, Lining was more than 600 million yuan in the profits of Anta. So in 2011, Lining tried to save the situation by two rounds of different price rises, and the price was close to Adidas and Nike. The rise in prices did not bring any good to Lining.

The sale and layoffs at the beginning of this year can be seen as Lining can not "open source", can only choose "throttling", but the future is still unknown.

　　 Embarrassing situation to be solved

There is no coincidence. The current situation of Lining and local brands can not be explained by the concept of "embarrassing" created by Lining. Anta's orders for the two quarter of this year will be reduced by 9%. The number of stores in the whole year will be reduced from 7800 to 8000 in the planned 8200. XTEP's orders for the two quarter of this year will be reduced by 10%, and the annual stores will be reduced to 400 from the planned 1000. PEAK's orders for the quarter of this year will be reduced to 9.5%, and the number of stores will be cut from the planned 9.5% to the 9.5%. Like Lining, the local sports brand is added to the "embarrassment" of shrinking scale without exception.

Although Lining's operation in the past four years has been puzzled after changing the bid, its extensive and large-scale development mode is also reflected in most domestic sports brands. From 2007 to 2009, there were 20 thousand new local sports brands listed in the country, of which the number of terminals increased by nearly two times at the end of 2009 compared with the end of 2006. After the growth of the crazy scale, the industry has been highly competitive and market concentrated. Since then, the whole industry has tried to use the leverage of raising prices to cope with the dilemma. But this way of drinking poison and quench thirst has dampened the consumer market, and ultimately intensified the collective de stocking risks and profits. Where is the way out?

Learn from Inamori Kazuo's approach. When JAL was in a mess, Inamori Kazuo thought it was necessary to convey simple values to all staff, that is, to love others, to create two kinds of material and spiritual wealth for the employees, and to pay no effort after all. This resulted in JPY, which lost 2 trillion yen, won 188 billion yen in the first year after Inamori Kazuo took over.

For local sports brands, what is most needed now is to be a dwarf in front of consumers, squatting to listen to their market feedback on price, quality and brand, which is far more effective than layoffs.