Lining Stock Or Has Reached As High As 1 Billion Yuan Brand Advertising Language Is Accused Of Failure.

Whirling, flipping, a series of difficult movements have won the reputation of Lining as "the prince of gymnastics"; now, in the business field

It is also playing another "big circle" - 2 years after the rapid expansion of the Olympic halo.

Lining lost blood:

More than 10% shops in Wuhan are closed.

Yesterday, reporters visited the 12 shops of Lining World Trade Plaza, Asian Trade Plaza, pin Mao shop and Moore City store, and found that 2 had closed.

"In September, Lining's counter was withdrawn and replaced by an outdoor brand" Pathfinder ", who was told at the 1 floor of Wanda Plaza in Lake choujiao." business used to be normal. "

A Lining store near the light rail station in Jianghan Road has also quietly become a Nike store.

The clerk said, "in August of this year, Lining withdrew."

Lining's official website shows that there are 51 shops in Wuhan.

When the reporter consulted Lining, who joined the sales representative Zhang Ning in Hubei province about the number of existing stores, the other side said, "the information of the official website is very old, but it can not disclose the specific number of shops."

But he runs Lining in Xinzhou district.

In the 4 years of the old song dynasty, Lining or 10% of the shops in Wuhan were closed.

He told reporters: "since last year, dealers have been unable to close down, and this year the situation is even more serious.

Many dealers originally opened two or three stores, and now only dare to tentatively retain 1 stores.

According to the semi annual report released by Li Ning Co, the first half of the year, the company controls the cost and efficiency of new stores, closes down some inefficient stores, and the 7303 Lining retail stores have reduced 952.

Behind the big closes, Lining's performance is a big loss of blood.

The announcement shows that in the first half of 2012, Lining's income was 3 billion 880 million yuan, and the net profit attributable to shareholders of listed companies was only 44 million yuan. Compared with its peak in 2010, its turnover decreased by 18%, and its profits dropped by 92%.

Distributors:

Shop sales hit 40%

Song sung joined in 2008 and became the distributor at the end of Lining's sales system.

Under the Olympic atmosphere, Lao song was fully felt.

Warming up.

"In the first two years, sales have been rising, and when they are good, they can sell 150 thousand yuan a month," he told reporters. "But since last year, sales have been declining. This year is particularly difficult, with sales of only eighty thousand or ninety thousand yuan a month.

If it continues to slide, shops will lose money, so I have to choose to turn. "

The reason for the decline of sales volume in old song is attributed first to the impact of online stores.

In September 19th this year, Lining's official online shopping mall was launched.

"On the same day, the small ticket produced by our POS shop took the slogan" welcome to Lining's official mall ", and wrote the website. It's too much to bear." song sung told reporters: "when I log on to the website, I can see that many new models can play 50 percent off, and my price can only be 5.6-5.8, and how to sell more than 20 percent off in the store.

Online stores sell so cheap, and how do we live? "

Besides official website, Lining is still there.

Tmall and other shopping malls have authorized several online businesses.

Reporters in Tmall Lining flagship store to see, "the whole audience 50 percent off (except for individual cases), folded full 200 minus 20" occupied the majority of the display.

A pair of 2012 men running for 369 yuan.

It costs only 189 yuan, only 49% off; a new male medium length down jacket, 649 yuan special price, net sales of 297 yuan, less than 54% off.

"A lot of distributors are complaining about this, and have failed to communicate with Li Ning Co many times, so many people simply quit."

Lao Song said.

1 billion inventory crisis:

The temptation of "big pie"

The impact of online shops is only a reflection of Lining's crisis.

In fact, any wise businessman will not let his shop shop impact on the physical shop unless it is helpless.

"Conservatively estimated that the amount of Lining's stock has reached 1 billion yuan, which is why he has to make use of the Internet as soon as possible." a person close to the Li Ning Co told reporters: "the source of the crisis is its overestimation of the market and the rapid spread of the pie."

In 2008, Lining benefited from the Olympic Games in terms of brand and performance and began to make rapid progress.

In 2009 alone, 751 shops were opened.

In the same year, Lining opened the first store outside Hongkong, and began to try "overseas strategy". In 2010, he opened a store in the United States, and authorized Spanish distributors to sell overseas, and made multi brand layout in outdoor, badminton, table tennis, running and other fields.

In 2009, Lining sold more than Adidas in mainland China for the first time.

Since its listing 6 years ago (as at 2009), the annual compound annual growth rate of sales revenue was 34.9%, and the net profit compound annual growth rate was 50.5%.

"Rapid growth, let Lining overestimate the market", long-term attention to Lining's sun Wuhuan sports marketing agency president Zhu Hui said: "at the same time, Lining ignored, Adidas and Nike, through the operation of low-grade products, accelerate to two or three line city penetration; more fashionable, affordable electric business brand is rising, such as Vic."

Haste makes waste.

From "nation" to "world"

In 2010, Li Ning Co changed its brand slogan from "anything is possible" to "post-90s, let change happen".

In the industry view, this is Lining's biggest failure.

In fact, Lining's desire to pform "national brand" into "world brand" has been fermented at that time.

At that time, Lining believed that Adidas and Nike could move from the development of sports products to the management of fashion clothes.

"For a long time, Lining was wobble in the strategic choice between sports and fashion," a former executive recalled. "The birth of Lining grew up in the mainland. In 2005 and 2006, the company's external publicity will emphasize the innovation of" Oriental elements ".

But after the recent brand remolding in 2010, this element is gone.

In order to make the company more internationalized, Lining also introduced a group of executives "airborne" from Coca-Cola, Procter & Gamble, Kangshifu, Mead Johnson and other companies.

Le Shuyu, general manager of Li Ning Co's former brand, and Xu Maochun, the product official of the company, are listed here.

However, because of the disharmony with the company culture and management, these "airborne troops" have moved on and off.

"When brand value and brand recognition have not yet reached international standards, they are eager to start expanding their derivatives and attacking overseas markets. This is actually a common problem for many Chinese companies, such as Anta and 361 degree."

Zhu Hui said, "before the brand is strong enough, the concentration of products and brand personality is very important."

400 million yuan sponsorship CBA:

Can the king return?

A former Li Ning Co executive said that the rapid development of the company in 2000 -2010 was partly based on the development of the whole economic environment, and many problems were obscured by the rapid development of the market.

Today, Lining has closed all the overseas stores, "after 90" was also removed from the slogan, and the head of Lining also returned.

In November 24th, on the opening game of CBA, players will wear Lining's robe. This time, Lining spent 400 million yuan on sponsorship.

But just as the "great circle" can also become the driving force and starting point of uplink.

Zhu Hui believes that Lining still has a chance, but he needs more time and patience.