Lining'S Comeback To Save Li Ning Co

Lining, who is about to enter the year of knowing destiny, once again returned to the public view, but was the founder of the Li Ning Co to rescue the crisis.

"Prince" comeback to boost the capital market, but it is not easy to diagnose the difficult problems of Chinese sports brand, solve the problem of company expansion and relieve the pressure of inventory.

Under Lining's banner

The Tsim Sha Tsui branch was closed early this month.

Does this mean that the internationalization strategy of Lining brand is aborted?

Lining himself announced his comeback in July of this year to reorganize the power of the company.

But the road before him is not so easy.

Recently, Merrill Lynch Merrill Lynch estimated that Li Ning Co's annual loss in 2012 will be around 226 million yuan.

This is definitely a nightmare for the comeback Lining.

In the sixth World Cup Gymnastics Competition in 1982, Lining won 6 Championships in the 7 games and created the unprecedented myth in the history of world gymnastics.

Since then, the name of the "Prince of gymnastics" is well known.

This is the famous sports brand Lining.

In 1988, Lining finally retired from the Olympic Games in Seoul.

After that, the brand name of the domestic sports brand named after Lining has been given many years of painstaking efforts.

In 1995, Li Ning Co became China.

The leader was not broken until 2003.

In August 2008, Lining lit the Olympic torch as the torch bearer of the Beijing Olympic Games. This once again let Lining brand sing the world stage.

However, at present, Lining's nightmare is following: closing stores, executives leaving, inventory backlog, market value of 4 years down to 76%, and declining orders.

Almost all the miscellaneous diseases that a sports brand can meet are placed before Lining.

The brand is in deep mire.

The 2008 Olympic Games is a brilliant achievement for China and a brilliant achievement for Lining and his company.

That year, "flying man" Lining lit the Olympic torch.

At the same time, there are also his company brand.

This move has brought the eyes of the world to Lining. Such a huge advertising campaign has also sent Li Ning Co to its peak.

Unfortunately, the height is not cold.

After the glorious summit, Li Ning Co slowly fell into a continuous decline.

Some data about Li Ning Co can not help but worry about the brand leader of the former Chinese movement.

In May 2010, the volume of Li Ning Co's new product orders declined significantly.

The stock market value fell by 4 billion 500 million yuan.

In 2011, the company's sales fell sharply. From 1 to June, only 3 billion 880 million yuan was recorded. The net profit also dropped from 1 billion 547 million yuan in 2010 to 630 million yuan in 2011.

Moreover, the company issued a warning that the fourth quarter of 2012, the total amount of orders has a double-digit decline, annual revenue and profits will be negative growth.

On the other hand, the company has lost half of its employees in the design center of Portland this year. Up to now, it has closed 1200 stores.

Such data, it sounds hard to make people shudder.

For Lining, it is also a great crisis and warning.

Where is the problem of Li Ning Co? The appearance of nightmares may not be accidental.

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"I think this is very much related to the massive expansion of Li Ning Co in the domestic and foreign markets, as well as the launch of new brands."

Mr. Lin, an insider, pointed out to the Weekend reporter of the rule of law.

"Now the entire sports apparel industry is facing the same predicament after the 2008 expansion and the current overall economic downturn."

A person close to Lining Wang told reporters, "of course, Lining needs urgent solution, as well as inventory problems."

Massive expansion is an important incentive for Li Ning Co to get into trouble, especially its overseas expansion.

Recently, a Li Ning Co spokesman told the media that Lining's sports clothing store in Hongkong, the only branch of Jinlun Road, Tsim Sha Tsui, was closed early this month.

Previously, this October 2009 store in Tsim Sha Tsui, Hongkong, which has an area of about 1900 square feet, has carried too many Lining's dream of large-scale internationalization.

Li Ning Co officials claimed that by 2018 Lining will become one of the five major sports brands in the world, when Lining will have more than 20% of its revenue from overseas markets.

However, over the past 3 years, Li Ning Co has encountered unprecedented resistance in various overseas businesses.

Although overseas market share is small, a company's investment in overseas markets is far higher than its domestic cost, which is virtually a heavy burden on the development of the company.

High inventory is another major obstacle to the development of Li Ning Co. It is also a derivative of the previous company's expansion strategy.

In 2008, Li Ning Co's 146 dealers were chief executives at that time.

Under the command of the company, the pace of expansion has been accelerating, and its net growth has reached 1012 new stores, setting a new record for opening stores.

Although it has won the aura of surpassing Adidas's return to the Chinese market by second, it has led directly to the emergence of high inventory.

With the rapid cooling of the consumer market after the Beijing Olympics, the number of Li Ning Co's stock is getting bigger and bigger like snowballs.

According to the results of the report, Lining's inventory in the first half of this year has increased to more than 1 billion 138 million yuan last year.

Coupled with the decline of the economic situation, under the double pressure of high storage pressure and the reduction of company orders, Lining had to break his arm to survive.

In order to control the cost and efficiency of new stores, Li Ning Co's "closing shop tide" naturally began.

In addition, how the company reconsidered the audience positioning after 90, as well as human resources, decision-making management and other aspects, but also let Lining headache.

Such adverse news will greatly affect the direction of the company's stock market.

It is reported that in from December 20 to 21, 2010, within two days of from December 20 to 21, 2010, the stock price of the Li Ning Co plunged more than 20%, and the market value evaporated more than HK $4 billion 500 million.

In such a vicious circle, it is not surprising that Lining's nightmare continues to happen.

What can Lining bring?

Before the Li Ning Co was founded, Lining was already a legend.

As a sports athlete, Lining has won numerous impressive achievements.

He created the myth of World Gymnastics history. He won 14 World Championships and won more than 100 gold medals.

The reputation of the "Prince of gymnastics" has been widely circulated.

But in 1988, Lining was defeated in the Seoul Olympic Games, and in the face of great pressure, he finally chose to retire from business.

He created Lining brand with his own name.

Lining said: "if you want to be a Chinese brand, you will do the Lining card."

Lining is relying on his superiority in sports and celebrity effect. He has made great progress in the Li Ning Co.

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At the 1992 Barcelona Olympic Games, the Chinese Olympic sports delegation wore Lining cards.

Appeared in the opening ceremony.

He recalled: "at that moment, I felt the greatest honor of my life, which was more than the sum of all the medals I had won before."

In 1996, Lining moved the company's headquarters from Guangdong to Beijing according to the experts' recommendation, officially renaming it as Lining sportswear company.

In June 28, 2004, the Lining group was listed on the Hongkong joint stock exchange.

The Lining family controls 46% of the company's shares, and Lining's family is up to 1 billion 600 million yuan.

During this period, Lining has always been a leader in China's sporting goods industry.

But now, when the Lining brand is at stake, the prince chooses to return.

Previously, Lining himself has been behind the company's operation.

Lining didn't want Lining to start with Lining and Lining.

So for many years, he insisted on the logic of "management release".

His strategy of governance is fading out.

This is also closely related to Lining's personal accomplishment over the years.

A foreign reporter clearly remembered that when other competitors were eager to make preparations for the 1984 Olympic Games in Losangeles, a contestant practiced calligraphy in the warm-up field.

When the referee whistled, he threw away his pen and jumped up.

This player is Lining.

Lining has a mature and steady personality.

He dares to empower, empower, and be able to enjoy the happiness of career and life calmly.

However, this time facing the nightmare that followed, Lining was finally unable to sit still.

In this way, the prince returns to the mall again.

Lining returned to the stage. Zhang Zhiyong, who served the Li Ning Co for 20 years, resigned as chief executive officer (CEO), while TPG partner Jin Zhenjun of the company was pferred as executive director and executive vice president.

It is worth mentioning that, although in the management of Li Ning Co, Lining adopted a management approach that is almost "govern by doing nothing", but he is very good at commercial operation.

An old thing can be seen.

Back to the 1990 Beijing Asian Games torch relay competition, Lining spent 2 million 500 thousand yuan eventually to buy it off.

The pferable right was priced at $3 million at that time, and large companies such as Fuji and Samsung also expressed interest.

This really makes Lining feel guilty. It is the so-called "smart woman who can't cook for a rice without straw".

Finally, Lining played the banner of "patriotism". He found the director of the torch office, talked about the original intention of his own clothes, and talked about the stigma of the podium wearing foreign cards.

Finally, even the first American who turned the Olympics into a business, Ueberroth, once left the Olympic torch relay to his own business.

"In the face of patriotism, are we still not equal to Ueberroth?" so it was said that the director's voice was choked with emotion. That's why Lining's brand was so impressive at the Asian Games.

This episode is also enough to show that Lining has an extraordinary business sense.

His coming out of the mountain will bring new vitality to Li Ning Co.

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In addition, Lining's deeply rooted relationship with the sports industry and celebrity effect will naturally add bonus points to the company's stock market image.

"Li Ning Co after the personnel adjustment, Lining is responsible for maintaining external affairs and relations, and will play a more important role and devote more energy" in the future. Jin Zhenjun is responsible for the development and operation of the company's internal affairs.

A source close to the source told the weekend of the rule of law.

The Li Ning Co has also introduced 3 stages of reform blueprint, including the reform objectives and development orientation in different periods, and has also added certain morale to the company.

At this point, the new move has brought some positive news for Li Ning Co. The recent two rise in Lining's stock price rose by 21% and 7.25% respectively.

But even so, the future of Lining's brand is still not very clear.

The excessive expansion of the pace before the contraction and the solution of high inventory became the problem that Lining had to solve after returning to the company.

"In the past, now and in the future, I will pay for the Lining brand, and will always be the major shareholder of the company."

For the first time in 5 years, Lining was deeply involved in the press conference.

It can be seen that Lining's brand is a pursuit and hope that Lining himself can never put aside.