Lining, Spain'S Authorized Dealer, Bankruptcy Internationalization Road Blocked

House leakage and rainy night

Under the pressure of inventory pressure and the turnover of executives, the largest sporting goods provider in China

The company seems to have gone through some unexpected twists and turns.

Recently, media reports reported that Lining's Spanish Company had declared bankruptcy. This incident even led to many sports clubs in Spain unable to get sports equipment to cope with the next season.

However, Lining's official rumor said that the rumour was not consistent with the facts after being verified with the company's international market department.

Meanwhile, according to the reporter's understanding, the occurrence of capital chain breakage is actually Lining's authorized business in Spain, which undoubtedly impedes Lining's ambitious international route from another side.

International business accounts for only 1%

According to Spanish media reports, Lining's authorized business bankruptcy has prevented many sports clubs in Spain from getting match equipment to deal with the next season.

The main injuries were football clubs such as Saragossa, Las Parma, celA Viggo and Vilva, as well as basketball clubs such as Malaga, the United States, and so on.

The local media even quipped that the players of these clubs needed to prepare for the nude debut.

However, in response to the term "authorized business", Li Ning Co responded that it was not a local branch of Li Ning Co in Spain, but a local partner. The name is LNPLU SIBERO A M ERICA S.L..

"They signed the sponsorship of some clubs in their own name, not directly related to Lining headquarters.

As for the local basketball association of Spain, because it is a direct agreement with the Li Ning Co, it will not be affected.

Since more than two years ago, after marking the new logo and setting up a new route, internationalization has also become a new goal of Li Ning Co.

However, after years of development, from the perspective of public information, Li Ning Co's overseas business accounts for only about 1% of its total revenue, and the vast majority of its business is still in China.

The European economic downturn has crushed the last straw.

However, even these 1% also carry Lining's dream of going abroad.

In the process, Spain has more benchmarking significance.

It is understood that 11 years ago, Lining's first overseas brand image shop opened in Spain.

In 2007, Lining signed a contract with the Spanish Olympic Committee and the Spanish basketball team to become a clothing sponsor.

As a result, the bankruptcy of the Spanish authorized business, to a large extent, represents Lining's "sea going dream".

In accordance with the international vision announced by Li Ning Co, the first quarter of 2009-2013 is mainly for internationalization, and 2014-2018 years for internationalization.

But from now on, Lining of the "preparatory period" has not been able to do so, and the domestic price raising and mark changing have failed to achieve the desired result.

On the other hand, in China consulting.

Analyst Liang Venlo looks like Lining still lacks some "luck". "Spain can not walk out of the depressed European economy, which is a major reason for the disruption of the authorized business funds of Lining. This is not Lining's subjective decision."

It is expected to solve inventory problems in 6-12 months.

At this point, Lining's internationalization can only be slowed down.

Lining official also said that more experience will be spent in the domestic market.

Last week, Li Ning Co just announced that the original C E O Zhang Zhiyong retired to the second line, and the founder Lining was responsible for the company's overall work.

And Lining immediately said, the domestic two or three line market still has great room for growth, and will focus on reducing inventory in the near future.

Although this argument is more than two years ago, Li Ning Co decided to go to big cities with Nike.

Compared to the positive competition, just like the one hundred and eighty degree turn, it has obviously won the support of the two level market. On the day of the replacement of C EO, Lining's share price rose by more than 7%.

On the details of inventory clearance, Lining, executive director of C E O, told a conference call with investors that it is expected that stocks will return to normal in the next 6-12 months. Mr. Jin Zhenjun said

Before that, it is necessary to reform the sales network and structure, otherwise it will be difficult to carry out more large-scale changes.

The whole process of change is expected to take 3 years to complete.