The Bankruptcy Of Authorized Dealers Reflects Lining'S "Internationalization" Has Been Severely Defeated.

It seems that the Li Ning Co, the biggest sporting goods company in China, has had some unexpected twists and turns.

Recently, media broke out, Lining's Spanish Company declared bankruptcy, resulting in many sports clubs in Spain can not get sports equipment to deal with the next season.

But then Lining official rumor said that this rumor is inconsistent with the facts.

However, according to the reporter, the occurrence of capital chain breakage is actually Lining's authorized business in Spain, which undoubtedly impedes Lining's ambitious strategy of "taking the 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.

But after years of development, from public information,

The company's overseas business accounts for only about 1% of its total revenue, and the vast majority of its business is still in China.

Economic downturn overwhelms the line of Defense

However, even these 1% also carry the dream of Lining, a local sports brand, to go 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, Lining, a garment analyst at Wah Jie, seems to lack some "luck" in Venlo. "Spain can not walk out of the depressed European economy. This is a major reason for the disruption of the authorized business of Lining. This is not Lining's subjective decision."

Plan to solve inventory problems

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, the Li Ning Co just announced that the original CEO Zhang Zhiyong was relegated to the second line, and the founder Lining was responsible for the company's overall work.

Lining himself also said that the domestic two or three line market still has a lot of room for growth, and will focus on the recent focus on reducing the price of inventory.

Although this argument is more than two years ago, Li Ning Co decided to work in big cities.

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Compared to the positive competition, just like the one hundred and eighty degree turn, but obviously won the support of the two level market to replace C EO, Lining shares rose more than 7%.

On the details of inventory clearance, Lining, executive director of CEO shared with Mr. Jin Zhenjun, said in a conference call with investors that the stock is expected to return to normal in the next 6-12 months.

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.