Lining Online Sales Authorization Confusion, Other Brands Will Follow Suit.

After experiencing a sharp contraction in share prices and a thorough shuffle of executives,

The trouble has not yet ended, the contradiction between online business and offline distributors is emerging.

As Lining vigorously discounts sales on the Internet, some distributors have no choice but to close the store, and distributors are selling them online.

A person close to the Li Ning Co believes that Lining's pains and problems will be faced with other Chinese sports brands in the future.

In Lining's online shopping mall, there are 6 promotional activities, such as the anti season 72% off, the autumn value 50 percent off and so on, while the Taobao shop sells more discount on Taobao.

Some dealers complain that the price of the product is not only lower than that of the physical store, but also lower than the supply price of the factory.

Luo Jian, an e-commerce expert, said that at the beginning of Lining's efforts to digest inventory, he opened the electricity supplier channel, causing the current confusion.

Lining: in the early days, there was no unified electricity supplier authorization. On the one hand, the Li Ning Co authorized the network operators. On the other hand, many online stores ran to buy goods from the dealers, the authorization was chaotic, and the price system was difficult to control.

At present, Lining has officially authorized 14 online shopping mall, and 25 thousand online stores selling Lining's products on Taobao.

According to the contradiction between online and offline, Li Ning Co replied that the scale of online sales is not high, and the core position of the entity store will not be shaken.

A person close to the Li Ning Co told reporters that Lining also realized that the confusion in online sales has begun to investigate and gradually recover power.

In addition, he also revealed that there was little contradiction between online and offline businesses. The online sale was second-hand products before 2011, and physical stores were dominated by new products. Secondly, Lining was buying large quantities of old goods to dealers, pporting them to Southeast Asia and Africa, or directly destroying them.

Sports brand expert Zhang Qing said

Days are tough, sales are at a low ebb, but the impact is limited, and it is more psychological.

Zhang Qing: the proportion of electricity supplier sales is not large, the impact is more concentrated in the psychological, so that dealers feel that the price can not compete, will curb their enthusiasm to open shop, but this is not a problem of the Lining family, is a common phenomenon in the whole industry.

In the past CEO Zhang Zhiyong era, Lining was more revenue oriented, when Lining shipped a lot to dealers, exceeding the actual retail capacity.

The insider close to Li Ning Co complains that Lining is just showing all the problems. Next, Anta, PEAK and other brands will follow Lining's footsteps.

Zhang Qing agreed with this view. He said that Lining was the tycoon of the industry, and that the problem was the earliest and the most exposed.

Zhang Qing: in the past, Lining's market share and sales scale have always been in the leading position, so he will be the first to bear the brunt. Second, they have been looking for change earlier, so they encountered these problems ahead of schedule.

China's sports brand industry has a common character, from 2007 to 2009, with rapid development and crazy pursuit of capital. Every company pays attention to sales volume and number of shops, ignoring the quality of opening stores.

In other words, Zara,

Fast fashion brands do not enter China in large scale.

Sporting goods, as casual wear, has attracted a large number of consumers. Now the fashion is spreading all the way. Taking Lining as an example, the sales of women's clothing is the most serious in every category.

Now Lining is going to turn off the loss shop and decide to concentrate on sports.

And Anta and other brands are still preparing to open hundreds of stores in order to boost share prices.