Letu, The Brand Of Li Ning, Is Now Closing Its Stores On A Large Scale

Li Ning, who holds high the road of "internationalization", is now in an awkward situation. Senior officials have left successively, and the sales of offline stores continue to decline as a whole. In the afternoon of August 2, the former Letu staff disclosed to the reporter that the brand Letu under Li Ning was closing its stores on a large scale, and it was expected that all stores in Shanghai would be closed by the end of August.

According to the employee, at the beginning of this year, Letu officially began to close its stores from March on the relevant plans. "There are 16 stores in Shanghai, and there are still 5 left." The employee said that in terms of employee placement, he could choose to transfer to Li Ning. "But this is also geographical. The transferred employees are assigned to remote locations, and many people are unwilling to go." According to the employee's guess, this may be the company's disguised way to let employees leave.

This employee revealed to the reporter that there are about 4-5 people in each store of Lotu. "As far as I know, only one of the four employees in a store chose to transfer to Li Ning to work, and the other four had signed a resignation agreement this afternoon." The employee also said that the employees who went to Li Ning also faced problems in terms of contracts and treatment. It is understood that the main reason for the store closing is the continuous decline in store sales. "I had the experience of only one or two thousand yuan in sales a week."

In addition, the employee also disclosed that Letu is negotiating with other companies on acquisition matters, and there is no progress at present.

Letu is a sports fashion brand from Italy. In 2008, Li Ning signed a contract with Lotto and obtained the exclusive franchise of Lotto trademark for 20 years, which can develop, manufacture, market, publicize, promote, distribute and retail Lotto licensed products in China. For this reason, Li Ning has paid an average of 19.69 million yuan every year since 2008.

Some senior Internet personages believe that the decline is not only from Letu, but also from Li Ning's brand strategy. In tradition Footwear While enterprises still have doubts about online sales, Li Ning is one of the traditional enterprises that decided to launch online earlier. Li Ning, Aigao, Hongshuangxi, Lotu and Xindong have formed the main brand structure. In 2010, Li Ning launched flagship stores of Hongshuangxi, Letu and other brands on Taobao, which increased the demand for online shopping of clothing. In addition to its high popularity, Li Ning has unique advantages in online business.

However, Li Ning's O2O model can hardly hide a series of embarrassments behind its brilliance.

The store closing disturbance of Li Ning Company dates back to the end of 2010. At that time, an analysis said that Li Ning would close 500 to 600 stores, but Li Ning immediately clarified that it was only integrating about 500 to 600 inefficient distributors, rather than closing stores. But the fact is that the number of new stores has begun to decline.

Although clothing brands can shorten the supply chain and save a lot of intermediate costs by taking advantage of e-commerce mode, according to the observation of insiders, too many e-commerce enterprises once wanted to do O2O mode.

Take the early e-commerce website 2688 as an example. In 2003, 2688 started to operate in all categories, and in 2006, 2688 started to set up purchase agency for online and offline integration. "2688 is the earliest pioneer of online and offline integration in China, and is still moving forward. It is an alternative in e-commerce." Miao Yurui, deputy general manager of Beijing Wooqi Xin'an Network Technology Co., Ltd., believes that the O2O model has huge investment and slow effect, but once the system is formed, its value is greater than that of traditional e-commerce.

Another example is the golden egg that has disappeared from the e-commerce camp, which is also the O2O model, focusing on the third tier cities. Miao Yurui believed that the management did not recognize this model, which led to the eventual demise of Golden Egg.

McCullin, who is known as the first member of e-commerce, also joined the O2O camp to create the Ten Thousand Store Plan, but this made its simple e-commerce model heavier, and the final result was unsatisfactory. Lai Yifen also planned to use offline stores as e-commerce distribution points, but it has little effect at present.

"The simpler the business model, the faster the results will be. However, the O2O model is too complex, and any link or short board on the entrepreneurial path may kill it." The above analyst said: "This may be the performance that dreams cannot live up to reality.