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Lining Successfully Introduced The US Private Equity Fund TPG

2012/4/1 8:53:00 28

Introduction Of Clothing Shoes Enterprises

Lining's best news recently is the successful introduction of TPG, the US private equity fund, as its strategic investor.

From the response of the capital market, TPG's strategic investment played a role in Kyushin Pills for Kyushin Pills.

After the news came out, Li Ning Co's stock jumped 21% in the two trading days.

The introduction of experienced and willing to participate in the management of strategic investors to enter the board of directors, will help to further improve the company's corporate governance structure, and promote the company's strategic change.

It is reported that TPG has been in China for 17 years.

Investment

Experience has strong resources in both consumer and retail industries.

One of the most deserving mentioning is that in 2009, TPG helped Taiwan's shoe vendor daphn/ 'target=' _blank '> Daphne succeed in its pformation.

Therefore, there is a general hope that the legend of a successful pformation of Daphne will replay in Lining.

In addition, investors such as TPG and GIC will bring 750 million yuan of funds to Lining, and also provide financial support for further changes of Li Ning Co.

"TPG and GIC become investors of Li Ning Co, adding more flexibility and flexibility to Li Ning Co in terms of investment, bringing us a sum of money to invest in deepening the pformation of enterprises, developing brands, continuing to develop and have more sports resources, improving product R & D design capabilities, promoting material innovation and pushing the sixth generation of market competitiveness to a large scale.

market

Lining CEO Zhang Zhiyong said that by the end of 2012, Lining will have 1500 sixth generation stores in China, which accounts for about 18% of the 8300 retail outlets in the country.

2012 is the "Olympic year" that brought luck to Lining. It is also a hurdle for Chinese sports brands to overcome.

In 2011, domestic sports brands collectively appeared "big inventory" phenomenon, in 2012, the pressure of shipment and new orders will appear on the major brands.

In the domestic market, a series of powerful brands such as Nike, Adidas, Anta, PEAK, 360 degree, XTEP and so on are eyeing Lining. With TPG, Lining has brought confidence and capital to Lining, which is expected to change the fate of Lining's decline.

In fact, the story of Lining's growth reflects the plight of the whole Chinese manufacturing industry.

brand

After reconstructing the failure, the problem is also the dilemma faced by the whole industry in China: the core value of the brand itself is not improved, the homogenization phenomenon is serious, and there is no irreplaceable nature.

Analysis of the industry, when the major brands in the form of low price discount to clean up inventory, local sports brand competition will be more intense, the brand is not very high reputation will be more difficult.

In addition, in recent years, branding shops have pushed up retail store rents and operating costs, and even those with financing channels can ease the pressure of capital chain.

In this sense, although pformation is risky, it is imperative.