Does Lining'S Big Hand Pen Fail To Turn The Tables?

Lining's heavy money to "flash man" can increase performance?

In 2011, the net profit of China's five major sporting goods brands Anta, 361 degrees, XTEP, PEAK and Lining were 1 billion 730 million yuan, 1 billion 133 million yuan, 966 million yuan, 780 million yuan and 386 million yuan respectively. Lining ranked last, while its net profit in 2010 was 1 billion 108 million yuan.

In July 4th this year, Zhang Zhiyong, chief executive of Li Ning Co (CEO) resigned; in October 12th, the executive director and chief financial officer (CFO) Zhong Yiqi had resigned from office in pursuit of other career development.

In such a passive situation, Lining denounced a huge fortune and $100 million stake to dig up the "flying man" brand superstar Wade, and with super Anta in previous years 10 times the price of CBA to become a sponsor for the next five years.

Such a crazy behavior has attracted many industry experts. Most economists also call these behaviors "incomprehension". Does Lining's big pen make it turn the tables?

Sticking point: ambiguity leads to market confusion

The Li Ning Co, which pioneered NBA marketing in China in 2004, has not insisted on it.

In 2005, Lining, who had already put forward basketball strategy, hesitated on the choice of sports or fashion line, which limited the limited resources to many sports categories.

In 2009, Lining put forward the strategy of badminton as the core project and made a poor record.

In 2010, Lining rebuilt the brand, but later proved that the strategy of positioning the post-90s was a failure.

Such failure led to Lining's brand raising the price and narrowing the distance from the international brand. However, it had to get entangled in the occupation of the existing market and the basketball and football businesses that took the badminton as the core and deviated from the first market; the diversification strategy had to face the long-term losses of the sub brand; and the internationalization progress was slow, all of which made Lining far away from the goal of becoming a top sporting goods producer.

According to our reporter, 2011 Annual report shows that Lining's stock is 1 billion 133 million yuan, an increase of 40% over the 805 million yuan in the same period in 2010.

In the first half of this year, the company opened 248 new stores and closed 1200 low efficiency stores. The Lining Hongkong store, once regarded as the symbol of internationalization, was officially closed, which was considered to be an undesirable self rescue.

Meanwhile, in the first half of the year, the number of Lining brand factory shops and discount stores increased to 271 and 394 respectively, and the proportion of retail sales revenue increased.

But in September this year, Li Ning Co used its offline channels to promote online shopping malls.

Since September 19th, the information and website of Lining's official mall have been attached to Lining's shopping ticket.

The website consumes 980 yuan and restores 45% off of the total information, which is very distressing for Lining distributors, because such discount is lower than most retailers' purchase discount.

The low discount of online sales has led to the sale of physical stores, and Li Ning Co's distributors are therefore complaining.

In the case of Li Ning Co's massive closes, people in the industry wonder whether Lining has stopped paying attention to distributors.

The ambiguity and uncertainty of brand positioning make Lining's brand effect not take root in the crowd of sporting goods consumption. Facing the marketing of different groups of goods, it is also difficult for consumers to consume such a domestic brand enduring.

Answer: signing a superstar to win the title is all written.

A few days after the resignation of CEO, Li Ning Co announced the signing of NBA super star and last season's champion team Miami heat Dewayne Wade.

According to the details of the contract disclosed by ESPN, Lining will provide Wade with a total price of $100 million for a period of 10 years. At the same time, Wade also owns the share of the brand and shares of Li Ning Co.

It is understood that the NBA player has been publicly priced.

In the contract, Wade's contract value is second only to the contract signed by bulls Derrick Rose and Adidas for 13 years with a total price of $185 million.

Before China's "flash man" fans were overjoyed, Lining did a great thing, that is, the CBA sponsor at the cost of 5 yuan and 2 billion yuan, but this price is almost 10 times that of Anta's previous sponsorship price.

Such a big move by Li Ning Co has caused a lot of controversy.

Some experts believe that Li Ning Co is gambling and taking drugs.

Of course, some experts believe that Li Ning Co is a return to sports and a good cure for Li Ning Co's current predicament.

Zhang Xiao Yan, the former director of public affairs and spokesman of Lining group, publicly declared: "as soon as possible to return to sports, Li Ning Co at any cost shows clear thinking and betting on a few stars."

He believes that this is a return to the mainstream movement. This road is absolutely right, and the CBA League, which has high price sponsorship for the next five years, is regarded as an important link in the return to sports.

But China one

Mr. Lining, an enterprise's brand director, said in a media interview: "it is not feasible for China to bring NBA stars into the industry."

In his view, Li Ning Co's move is not suitable for the current Chinese market.

"Previously, Li Ning Co did not do well in the brand of Lotto, and now suddenly made the Wade brand. The prospect is doubtful, or it can lead to indigestion."

Mr. Cheng said realistically.

Transformation: focus on outdoor equipment market

On the 20 th of this month, the outdoor sports brand Pathfinder listed on the gem of Shenzhen announced the performance report of the first three quarters of this year. In the first 9 months of this year, the total revenue of the company increased by 45.27% compared to the same period last year, and net profit increased by 51.16% compared with the same period last year. It has a very strong contrast with the recent performance and profit decline or even loss of Nike, Lining and Anta.

In addition, the Pathfinder still maintained a relatively fast pace of expansion. In the third quarter of this year alone, 126 new stores were opened and the total number of stores increased to 1352.

Outdoor sports equipment is a relatively new consumer product, with a higher consumption threshold and a higher degree of consumption. But the fast-growing consumer market has inspired Lining.

Li Ning Co has brewed two years of "Lining exploration" brand in order to cater for the outdoor goods market, which was born last year.

According to our reporter's understanding, the current domestic outdoor brands use similar domestic sporting goods for simple and rough development, lack of guidance and guidance for the domestic consumer movement, carry out unique design, affinity, influence, high loyalty and valuable brand building. There is a lot of homogenization competition under the pressure of the extension of sports products, while a large number of niche users are lacking. The operating cost is soaring, and whether the brand with strong foundation and vigorous vitality can be formed is not optimistic.

Some experts believe that Lining and other sports brands do outdoor products only as a supplement to sporting goods, but not enough for outdoor sports products market.

However, Lining, Anta and other sports brands are large scale and strong economic strength. If they can operate outdoor products independently, they will not rule out changing outdoor sports products in the future.

The possibility of pattern.