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    Lining PK Jinjiang Gang, Competition Between Shoe Enterprises

    2012/7/11 10:13:00 63

    LiningJinjiangShoesBasketball Shoes.

    "Why?

    Jinjiang brand

    We can catch up with us in two or three years? Where are our advantages now? Where are the problems? What should we do? "Lining asked at a board meeting in early June.


    Most of the enterprises such as Anta and PEAK originated in Jinjiang, so they were collectively referred to as the "Jinjiang Gang".

    These enterprises are mostly from the foundry enterprises, at the low end of the industrial chain, and after the strong financial strength, they began to apply for a brand themselves, then find a bunch of stars, advertise in the CCTV, develop agents, and gradually grow.

    This is a form of pure enterprise, which is characterized by what they earn, and family business is more serious.


    "The management mode of franchisees in Jinjiang enterprises sometimes makes me feel like returning to the small peasant economy, clan, village and so on. As for Anta's joint venture mode, it does not exclude a direction of development, but now it looks a bit like shifting risk."

    Anonymous sports industry insiders said, "Lining's DNA is different from Jinjiang's enterprises. Whether it's the founders and enterprises, or the blood flowing through sports, you see that no one in the world's ADI and Nike is hanging on the head of a sheep to sell dog meat. All of them have a deep understanding of sports."


    But now Jinjiang is helping the enterprises to start a new force and has encircled and suppressed Lining.

    In 2010, Lining's profit was overtaken by Anta, and Anta was also named after Anta by Chinese CBA.


    It is hard for investors to believe that Nike challengers, who have been growing at a compound growth rate of over 35% over the past few years, would have fallen so badly.

    The 2010 annual report is not as good as expected.

    Lining's revenue growth is only 13%, although the turnover of 9 billion 479 million Hong Kong dollars continues to be ahead of the main chaser Anta's HK $7 billion 408 million, but in terms of profitability, Anta's HK $1 billion 551 million is far more than that of Lining's 1 billion 108 million Hong Kong dollar.


    Give Way

    Lining

    I am concerned that Anta's market value (HK $35 billion) is not only far more than that of Lining (HK $14 billion), but it is 2.5 times that of the latter.


    Lining always thinks he is a sports Brand Company with great ideals. They despise Jinjiang shoe enterprises that only sell shoes. But in recent years, the performance of these competitors who had once been their young brothers has been progresses by leaps and bounds, and even more than their own time.

    Unfortunately, their management team failed to win the battle.


    "The most important thing we should do now is to let consumers find pronoun.

    For example, basketball and NBA are Nike, football and European major league matches are ADI.

    And Lining has to find his pronoun.

    The insider, who declined to be named, said.


    How to find pronoun is to return to the sport itself and return to the domestic market. Marketing should continue to highlight Lining's advantages, such as ball games, gymnastics and running.


    In short, it is LINING, not Lining, that mentions Lining.

    As for channels, goods, marketing, operation and so on, they are all interlocking.


    "Lining's promotion is actually much easier than that of Jinjiang and Anta. But in 2006, Lining began to expand, leaving many people inside the company out of the market. Now Lining needs to return."

    The insider, who declined to be named, said.


    Lining's missed opportunities


    An old staff member of Lining told reporters that from the 1992 Barcelona Olympic Games, Lining was the partner of the Chinese Olympic Committee. The Chinese players' winning clothes have the symbol of Lining, and the Olympic Games are of little significance to the Li Ning Co.

    In the field of football and basketball with the largest number of participants and the biggest influence, the chances of China becoming the world champion are very small. The biggest possibility for Chinese to stand on top of the world's highest podium is the Olympic Games, so the award dress is therefore a battleground for the military. But Lining lost to Adidas in 2008 and lost to Anta in 2012. If the pnational sports giants such as Adidas were excused, the Li Ning Co lost to the "little boy" Anta, not the lack of ability, but the willpower not firm.


    The missing opportunity for Li Ning Co is not just that.

    In June this year, Li Ning Co announced that it will sponsor the five China Men's basketball professional league (CBA) from the start of the 2012/2013 season.

    After the defeat of countless Chinese people in China's soccer game, basketball has become the most popular sport in China. It has countless fans. At that time, the Li Ning Co only won the sponsorship of CBA. It is really late.


    In fact, as early as 2004, Li Ning Co has launched a rebound and mitigation function.

    Basketball shoes

    Li Ning Co is also the first Chinese sporting goods company to sign the NBA as spokesperson, but Lining didn't stick to his original attempt.


    In the field of football, the Li Ning Co signed a contract with the then national team star Li Tie in 2003, and provided the market with "iron series" football shoes and match suits, but the football game and the development of star resources were all over.


    Sponsoring top competitions and signing star athletes is the core of the "real skills" of all sporting goods companies. Lining's old staff regrets that if the leadership of the company can be more ruthless, the will will be more resolute, not swaying or hesitating, Li Ning Co may be another look today.

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