To The National Shoe And Clothing Enterprise Lining, To Be Honest, We Need To Take The Time To Remedy The Situation.

If we want to select the best marketing advertisement in China in recent years, Lining, a sports brand, will definitely be admitted to the top three. At the opening ceremony of the Beijing Olympic Games, Lining, a legendary athlete, ran around the field in the air and lit the scene of the main torch, which left a deep impression on the hearts of countless Chinese people. However, a brilliant image can not support the entire company. Four years later, Li Ning Co encountered a lot of trouble.

Listed in Hongkong Shoes and clothing Sporting goods manufacturer Li Ning Co Ltd announced in July 5th that Zhang Zhiyong, the chief executive of the company, has been out of office for ten years. The management of the company has been taken over by the founder Lining and executive vice president Jin Zhenjun. It is widely speculated that the main reason for Zhang Zhiyong's departure is the deteriorating management of Li Ning Co in recent years.

Last year, Lining's sales revenue fell 5.8% compared with the same period last year, net profit dropped by 65.16%, and the inventory value increased by more than 40% over the same period last year. The Li Ning Co issued an early warning in June 12th this year, calling the company's annual orders showing a decline in high unit numbers, and expects to see a sharp fall in the first half of this year and annual profits. For the performance of Lining, the industry is not surprised.

The 08 year is the peak of China's sports industry. After this peak, we should pay attention to the adjustment period, because we can see that China's sporting goods enterprises are crazy to expand stores in recent years. We can see a commercial street, a sporting goods company may have two shops. At that time, the Li Ning Co CEO Zhang Zhiyong team did not realize this in time.

Zero forward strategy Zou Jing, director of brand communication department: Lining is in a rather uncomfortable state and is rather embarrassed. Compared with international brands, such as ADI Nike, the price will be lower than others 20%-30%, but also more expensive than the local brand 35%-45%.

In the industry view, Li Ning Co is in a predicament and can not get away from its failed brand building and channel reform.

Its brand remolding and channel reform are going on at the same time, and the problems it faces are very serious. Its brand remolding has been relatively unsuccessful, which has hurt a group of consumers, called "post-90s". Then the channel reform causes the pressure of the inventory of the channel traders, and then some old products still exist. So, how to solve this inventory is not a good plan before, and it also hurts the interests of the channel partners and their partners.

Internationalization is the main strategy of Li Ning Co in recent years. It has signed the Spanish Olympic Committee, sponsoring the basketball team of Spain and Argentina, so that people seem to see the shadow of Nike and Adidas. But Lining's internationalization has not brought substantial benefits to the company. The company's authorized company in Spain has filed for bankruptcy recently due to poor management and capital flow.

If we want to internationalize, we must first stabilize the local market. Why did Lenovo get the most words in 2009 when Liu Chuanzhi came out of the mountains? We need to stabilize the Chinese market. This is our base camp. When we stabilize the Chinese market, we have the time and energy to do the international market. In fact, Lining's operation efficiency has been on the low side, and Lining is a light asset company. It is a company that mimics Nike and ADI's light assets. They are all acting factories, resulting in relatively high manufactured products. In terms of operating costs, compared with local companies, our operating costs are very high. Because Lining began to mention internationalization in 06 years, so the internationalization is the internationalization of talents and the internationalization of services. In terms of talents, the agencies and service companies used are 4A, and the talents are also internationalized talents.

Lining, who has been out of business for a long time, has returned to the mountains, announcing the introduction of private placement fund for the company, and has released a "three step" plan to improve the business situation: cleaning up inventory, improving supply chain and adjusting profit structure. But this revival plan is easier said than done.

Their entire supply chain management is very poor. We can see that their profit margins are very poor, including their inventory turnover and recovery accounts, which are much worse than Anta's. This is the key for enterprises to compete, because marketing is relative to front-end, and the whole supply chain is the core. If supply chain management is not good, profits should come from this. Therefore, from 2013 to 2014, it needs to improve the supply chain. I think a year's time is facing great problems, including their channel transformation.

The biggest problem is brand positioning and brand planning. If this problem is not solved, marketing includes second stages of marketing experience, but if it does not even answer the question of consumers, what value can be given to consumers, and no answer is given, other marketing or channels are more difficult to do. Lining should consider adopting multi brand strategy to compare with international brands, and at the same time establish a relatively low-end brand to compete with local brands.

Lining himself is going back to the mountain at the critical moment. He is undoubtedly going to give the company top and bottom investors a reassurance. But he and the management team really want to turn the tide.