Lining'S Mainland Business Development Hindered Internationalization Is Not A Priority Option.

In September 11th, Lining told the media that the company's Hongkong Tsim Sha Tsui branch was closed early this month, and the company will focus on the development of the mainland business.

In response, there are people in the industry who say Lining's overseas market expansion is not easy. It is difficult to manage, consume demand differences and the strong market control of overseas domestic brands.

Lining, founder of sports Consulting Co., Ltd., Zhang Qing, also said that internationalization is no longer a priority option when mainland business is blocked.

Company: overseas business is still in the exploratory stage.

It is reported that the branch is the only branch of the company in Hongkong, settled in October 2009, then signed for 2 years.

Media reports reported that the company had renewed its lease after the lease expired last year, and the rent increased to more than HK $700 thousand, but it did not renew the contract. The owner or tenant would be allowed to leave for 2 months notice period.

In this regard,

In a reply to reporters, the company said that the overseas market business, including Hongkong, is still an exploratory stage, and it should be carried out in a controllable risk and cost controllable manner.

At present, the company's strategy is to focus on the development of the mainland market.

Regarding whether the company mentioned by reporters will continue to pay attention to and explore overseas markets in the future, the company said,

After all, there are many situations that are different from the mainland market. The company is in the exploratory stage, and it is also a learning process. It will be explored in the way of controllable risk and controllable cost.

Insiders believe that Lining's move and

It matters.

Due to the poor performance and low profitability of many shops, Li Ning Co has shut down 952 branches in the first half of this year.

Zhang Qing told reporters that over the past few years, Lining has been too optimistic about the development trend of the industry, and the overall business strategy tends to be diversified.

Zhang Qing also pointed out that in the case of Lining's impeding business development in the mainland, the so-called internationalization is not a priority option.

Experts: many reasons hindered overseas development.

For Lining, Hongkong's Tsim Sha Tsui branch, which was closed early this month, a long-term investor who concerns Lining said that it is not Lining who does not want to do overseas market, but the reality forced the company to change strategy.

The reasons for Lining's frustration in overseas markets are that the reasons are manifold.

The independent competition commentator Ma Gang believes that the competition in the overseas market is different from that in the mainland. "The sporting goods market in the mainland is in an upward trend, and the market in developed regions like Europe and the United States is very mature. It is very difficult to sell in a mature market.

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Zhang Qing also told reporters that "sporting goods market in Europe and North America has been quite mature," Nike, ADI and so on have been expanding for many years, leaving the market for local brand development is quite small.

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Apart from the above reasons, the differences between domestic and foreign cultures have led to the fact that consumers' habits and needs have also affected Lining's overseas market expansion.

Not Lining's family, Zhang Qing told reporters that mainland brands are not doing very well in developing overseas markets, while sports brands want to develop, so they have to connect with some mainstream sports. "But there is not much accumulation of local brands, so it is difficult to have core competitiveness to enter the European and American markets.

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After passing the store and shifting the focus of the business, can Lining's future development turn around? Ma Gang believes that for now, "if the inventory is not improving, it is difficult to judge his subsequent improvement."

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