Lining Channel Revival Plan Has Targeted Policies For Different Distributors.

According to reporters, the channel revival plan does not include all distributors, but Lining No further details were disclosed. Li Ning Co responsible person told reporters that the dealers involved in the plan accounted for more than 50% of the total sales, and implemented targeted policies for different distributors.

According to the information provided by Li Ning Co to reporters, the company is facing excessive channel inventory and over seasonal product share, resulting in high discount sales, declining retail performance and the profitability and cash flow of dealers and distributors. Li Ning Co said in an interview with reporters that Li Ning Co first encouraged dealers to dispose of goods by means of discounts and promotions, and Li Ning Co would bear some of the losses.

At the same time, Li Ning Co will also buy back a few products that are relatively long after they are evaluated. These products will be resale to overseas markets or charitable donations. It is understood that the goods do not appear in cash, mainly reflected in the dealership and Li Ning Co receivables discount. In addition, Li Ning Co also said that while assisting dealers in clearing goods, it encouraged them to promote new products and enhance their retail capabilities.

Xiong Xiaokun, a CIC Light Industry Research Institute, believes that channels are the "tentacles" for clothing enterprises to reach the market. The rational layout of the channels will expand the influence of enterprises. Meanwhile, smooth channel sales are the guarantee of clothing sales. Lining has spent huge sums of money to integrate sales channels, which will bring greater changes to his predicament.

Since 2012, Li Ning Co has begun to reduce stores by optimizing channels. According to the Li Ning Co daily report, the number of Lining's regular stores, flagship stores, factory stores and discount shops reached 7303, a 952 reduction compared to December 31, 2011. In order to improve the efficiency of channel management, dealers also reduced by 5.

However, the revitalization plan for this channel is also facing challenges and variables. Li Ning Co recently issued a profit warning and expects the company to lose substantially in the 2012 fiscal year. Li Ning Co's explanation is mainly due to the inclusion of Channel revival plan And so on. It is reported that this is also its first loss since its listing in Hongkong in June 2004.

Last year, Lining's shares fell 21%. At the beginning of 2013, the opening day of the first day of the Hong Kong stock exchange, Lining's share price rose by 11.9%, the largest increase in sporting goods shares, and Anta and other sports brands also had different gains.

In fact, 2012 is Chinese sports brand A year of collective winter. After the rapid development period of wholesale operation and over expansion, Chinese sports brands have a lot of stock crises. As an industry leader, Li Ning Co has attracted much more attention.

However, Lining is facing more than just the pressure of inventory. According to the 2012 Lining China Daily report, as of June 30, 2012, the company's income was 3 billion 880 million yuan, down 9.5% compared with the same period in 2011.