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    Lining Cleaned Up Inventory And Spent 14-18 Billion.

    2012/12/23 20:22:00 14

    Brand ClothingLi Ning CoClean Up Stock

    < p > the famous "a target=" _blank "href=" http://www.91se91.com/ "clothing inventory /a" > brand Li Ning Co launched a large-scale rejuvenation plan.

    Yesterday morning, more than 6 o'clock, Li Ning Co announced that the board of directors has approved the implementation of a large-scale stock related stock movements < /p >


    < p > Lining 5.3600.1402.682% < /p >


    < p > secondary channel revival plan, in order to solve the problems of sales channels including excessive inventory, and it is estimated that the cost will be between 1 billion 400 million and 1 billion 800 million yuan.

    < /p >


    < p > < strong > support garment dealers to clean up inventory < /strong > /p >


    < p > Li Ning Co said yesterday that the board of directors has approved the full implementation of the "channel revival plan" as part of the expansion plan announced in July this year, which is intended to speed up the liquidation of backlog stocks, revitalize downstream effective circulation and enhance the profitability of channels.

    < /p >


    < p > for the specific recovery plan, Li Ning Co said it expects to reach 1 billion 400 million yuan to 1 billion 800 million yuan RMB. The plan focuses on supporting dealers to clean up inventory, buy back, integrate sales channels, and carry out resellers' refinancing through targeted rejuvenation programmes.

    < /p >


    < p > channel revival plan will allow distributors to put more new product mix into the market to better meet the needs of consumers everywhere.

    In addition, the plan will help dealers improve their financial position and cash flow and lay the foundation for future development.

    The one-time investment of the channel revival plan will be mainly reflected in non cash and offset accounts receivable.

    At the same time, the company also reformed channel policies to support retailers with strong retailing capabilities.

    < /p >


    < p > < strong > pay for the wrong decision once. < /strong > < /p >


    < p > > "over the past decade, the company has rapidly expanded the sales network through the wholesale operation, occupied the market share and seized the first round of development opportunities. For the declining performance, Jin Zhenjun, executive vice chairman of Lining group yesterday admits, but in recent years, the growth rate of the whole industry has been declining rapidly and showing signs of saturation. The past development mode can not effectively meet the requirements of the future development of the industry, and the development of too radical leads to an increase in dealer inventory, and a decline in the operating capacity and profitability of the retail store.

    < /p >


    < p > "Lining's move illustrates at least one thing. In the past, Lining made a big mistake, neglecting the relationship with partners, and being completely aggressive in the sales channel, and constantly opening up shop", a person who once served as an executive in Lining told reporters yesterday that extensive development can not solve any problems, but sadly Li Ning Co has been implementing this wrong decision for a long time.

    < /p >


    < p > < strong > the digestion path of old goods is not clear > /strong > /p >


    < p > the above said, "the repurchase measures are right, because goods are in the hands of dealers, they can not buy new products, and if they solve the inventory problem, dealers will be able to place orders for next season".

    < /p >


    < p > but Li Ning Co buy back is also faced with the problem of how to digest these products.

    In this regard, Lining did not give a clear statement.

    < /p >


    < p > these people believe that if we choose low price, we will damage Lining's brand.

    < /p >


    < p > < strong > is expected to make a huge loss in the whole year < /strong > /p >


    Lining, who once announced that China's market performance outperformed ADI's sales in China, has declined sharply in recent years. In the first half of this year, its net profit dropped by 84.9% to 44 million yuan, compared with 386 million yuan in the same period last year.

    < /p >


    < p > and this channel revival plan will make Lining's achievements worse.

    Li Ning Co said yesterday that the huge cost generated by the revival plan will lead to significant losses in the company's performance this year.

    < /p >


    < p > yesterday, Lining received a total of HK $4.7 a day, down 3.885%.

    < /p >

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