Lining'S Share Price Has Dropped By 43% This Year.

Less than p days ago, Lining once again joined hands with fans to launch the second round of offensive clearance sale. The 48 hour special sale of "19 yuan from the start of the game" has really made many consumers exhore, but many customers scoffed at it. They even sighed that Lining, who had become a "stall goods", was once the first-line sports brand. < /p >

< p > looking back to 2012, this is an extremely difficult year for domestic sports brands.

Domestic and international market downturn, manufacturing costs rise, inventory backlog and other issues highlighted, Lining, Anta, PEAK and other domestic sports brand performance fell sharply, profitability declined sharply, the expansion of industry horse racing enclosure is gone.

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< p > < strong > pain of Lining < /strong > /p >

< p > according to the Li Ning Co annual report 2012, the company achieved operating income of 6 billion 739 million yuan, a decrease of 24.5% compared with the same period last year, and the profit of equity holders should be reduced to 1 billion 979 million yuan, a decrease of 2 billion 365 million yuan compared with the same period last year.

This is Lining's first performance loss since it was launched in 2004.

In view of the serious decline in performance, Li Ning Co had to "cut corners" and gradually shut down stores.

According to the annual report, as of the end of 2012, the total number of shops in Lining's regular stores, flagship stores, factory stores and discount stores was 6434, representing a net decrease of 1821 at the end of 2011, with a reduction of 22.06% and an average of 5 outlets per day.

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< p > in view of the sharp decline in performance, the company said that the company was partly due to the company's reduction in wholesale sales, provision for accounts receivable and inventory, costs associated with the implementation of the change plan and channel rehabilitation plan and other restructuring costs.

However, the company's explanation failed to ease investors' disappointments. The company's share price plummeted from the highest price of HK $7.07 at the beginning of the year and continued to oscillate. As of yesterday's close, it fell to HK $4.01, or 43%.

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< p > < strong > "cabbage price" crazy sale: < /strong > /p >

For P, the trouble of Li Ning Co has not ended.

According to the annual report, as of the end of last year, the company's inventory has reached as high as 919 million yuan, and huge inventory is like a "barrier lake" suspended at the top of the head.

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< p > early April, Lining decided to join all customers to launch a 48 hour time sale campaign. The activity was very successful. After 19 yuan's aggressive attack, the products sold after 18 hours were sold out, ending 30 hours ahead of schedule.

With the help of "flash purchase" to inventory, Li Ning Co fought the first battle together with everyone.

With the first successful experience, in the spring and summer sale in April 22nd, Lining sold again crazy, and the price of products was "more powerful".

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"P", "cabbage price" type of big sale has hurt many consumers, most of the products have been sold out, but many customers are disappointed with Lining.

Some netizens exclaimed: "the real booth price ah, I did not expect Lining to go to this point."

Netizens are carrying on Sina micro-blog commentaries: "last time we were selling cheap promotions to all customers, smashing signboards instead of using stocks for material assistance." Lining, a national product, has so many people to support that it can't be chilling.

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< p > < strong > brand crisis appears < /strong > /p >

< p > low price promotion, crazy sale can really help Lining through the crisis? From the point of view, online clearance sale has dealt with inventory to a large extent and has realized the return of capital, but in the long run, it will have a great impact on the company's sales and brand management.

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< p > a lot of research institutions say that online panic buying is likely to impact on offline store performance.

In response, Lining responded that all the goods sold in the cooperation with all customers are different from those of Lining's proprietary network platform and offline stores, and are consistent with the Li Ning Co's consistent online and offline sales strategy, so it will not cause any impact on the store.

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< p > for many consumers to Lining "self depreciation" Tucao, Jingdong mall director of public relations Yan Yue long commented on micro-blog: Lining through the guest to clean up inventory, short time is cool, but in the long run, hurt the brand, who will buy Lining's season goods at high price? You wear Lining on the street, you will say, look, it is 10 yuan to buy it.

CEO, Cheung Ching, a key sports consultancy, also said that once a brand has become a cheap commodity in the eyes of consumers because it keeps cleaning up its inventory, it will be more difficult to get back to its original position.

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