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Inventory Of Lining Crisis

2013/7/28 11:50:00 20

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Lining Crisis Brand Building Sports Brand

"P > > top executives' turnover climax /p >

The top executives of the "P" outside "airborne" came after a wave of different fast consumer goods.

By 2011, a large number of executives left the Li Ning Co.

Zhang Qing P likes to use Kung Fu tea to entertain guests.

When p talked to reporters about the past, he lit a cigarette first.

Zhang Qinghe, who has just worked with CEO Zhang Zhiyong for 7 years, is the first marketing manager appointed by Zhang Zhiyong.

Prior to 2000, Li Ning Co has always been product oriented. Zhang Qing said that he had proposed a market-oriented approach, starting with consumer insights, and beginning to intervene in product design, research and development, and later promotion.

Zhang Zhiyong adopted his suggestion.

that is a large market department merged by three departments. Zhang Qing changed from several people to forty or fifty.

"unfortunately, I have been working for over half a year."

Zhang Qing said, "airborne troops" came, and I became a public relations and brand asset manager.

The paratroopers of Zhang Qingzhi are the first ones to come from foreign enterprises. There are Wang Li from Baleno to Li Ning Co, and Xu Weijun, who is the manager of marketing department from Coca Cola Co.

Xu Weijun first worked as a marketing manager in Li Ning Co, then an assistant to the president, and finally became a CMO (Chief Marketing Officer).

Less than a year after CMO, he left the company in the second half of 2007.

< < a href= > http://www.91se91.com/news/index_c.asp > > Lining < /a > the eyes of the old employees of the company.

according to them, apart from a product manager from Reebok, there are also people from different fields of fast moving consumer goods, such as Procter & Gamble, Master Kong, Mead Johnson and so on.

Le Shuyu, general manager of Li Ning Co's former brand and Xu Maochun, a product official, belong to "airborne".

2011, a large number of Li Ning Co executives left. Following Fang Shiwei CMO, chief executive officer Guo Jianxin, Wu Xianyong, general manager of Lotto business department, Zhang Xiaoyan, chief product officer Xu Maochun, director of the Ministry of external affairs and public affairs, resigned.

July 5, 2012, Zhang Zhiyong left office CEO, has been out of the company's specific business Lining regression management company for many years.

brand remolding failure > /strong > /p >

brand remolding takes the theme of "post-90s Lining" as the biggest failure. It hurts old customers and does not attract young people.

in addition to executive turnover, more attention has been paid to Li Ning Co's brand remodeling in recent years.

In July 2010, when Lining announced that the Make The Change had changed, there were a series of problems, including the turnover of many executives, layoffs, overstock, and the stock price fell to its lowest level in six years, from the highest HK $32 to HK $5, and 2012 earnings warning: the company's expected performance or negative growth.

despite the fact that the company has been emphasizing "active change", 2011 has obviously become a turning point for Lining's performance. Over the years, the continuously rising performance has begun to decline. The company's annual operating income is 8 billion 900 million yuan, down 5.80% compared with the same period last year, and net profit has dropped to 65% from the same period last year, from 1 billion 100 million yuan to less than 400 million yuan.

Li Ning Co has been established for more than 20 years, and there have been two brand remoulding. It is only the first time (Anything is possible is anything possible) because it is relatively successful, and is rarely mentioned.

"Before that, the company made adjustments almost every year, replacing advertising slogans and experiencing a fumble."

Zhang Qing recalls.

Fang Shiwei is quite a concern in the airborne force, not only because he was the trader of the Li Ning Co brand remolding campaign in 2010, but also because he entered the company from 2007 to the end of 2009 and achieved three links in his duties.

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< --EndFragment-- > with the theme of "post-90s Lining", the slogan "90 after Lining" is used in advertising language. Taking age information as a criterion, it is regarded as the biggest failure in this brand remolding campaign afterwards.

It not only hurt the hearts of the old customers, but also did not let the real young people - Lining brand want to locate the market group, from psychological to feel highly fit.

"booth is bigger and bigger" /p >

Li Ning Co swayed in the strategic choice between sports and fashion, and carried out multi brand layout.

Lining's idea is to weaken his symbol and brand and cultivate the company into a sustainable development company.

In 1997, when the Asian financial crisis broke out, Li Ning Co encountered a bottleneck for the first time. The threshold of annual sales of 1 billion could not be broken.

Faced with the crisis, Li Ning Co embarked on the path of change: eliminating family management, identifying professional development strategies, strengthening technological R & D capabilities, and introducing information management.

At that time, Zhang Zhiyong began to emerge.

from 2003 to 2009, China's economy is developing rapidly, and the sports consumer goods market is also growing.

In 2008, Lining's successful Olympic marketing pushed the company to its peak, and this boom lasted at least until 2009.

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

Since its listing 6 years ago (as of 2009), Lining has seen an average annual compound sales growth rate of 34.9% and an average annual compound growth rate of net profit of 50.5%.

"now looking back, the rapid development of the company is to a certain extent based on the development of the whole economic environment, and many problems are also obscured when the market is developing at a high speed."

A former Li Ning Co executive said.

Lining P grew up in the mainland. "I have always felt that Oriental elements should not be lost."

The executive said.

In 2005 and 2006, the company seemed to have found this point, and began to emphasize Lining's eastern element. At that time, all the Li Ning Co's external manuscripts, tenders, including public relations activities and advertising, wrote a sentence at the end of the briefing: there must be an innovative oriental element.

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

introduction of international capital /p >

private equity fund TPG holdings of 12%, TPG partner Jin Zhenjun as executive director and executive vice president of the company, Lining is mainly responsible for the company's external affairs and relations.

in addition to changes in business, Li Ning Co also introduced two big investors.

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In January 19th of this year, Li Ning Co announced that two investors had subscribed convertible bonds issued by the group, of which TPG, a private equity fund, would subscribe for convertible bonds of 561 million yuan from Li Ning Co, and the members of Singapore's Government Investment Corp (GIC) would subscribe for convertible bonds of 189 million yuan for P --EndFragment--.

Assuming that all convertible bonds can be converted into shares, TPG occupies about 12% of the company's share capital.

according to the conditions signed by TPG and Li Ning Co, TPG has the right to nominate two non-executive directors to the board of directors and to nominate a director (or other independent non-executive director) to serve as an audit committee, a nomination committee and a remuneration committee member, and the right to nominate two executive directors as members of the Executive Committee.

In April this year, Li Ning Co announced the appointment of two TPG members, Jin Zhenjun and Chen Yuexian, as non-executive directors of the company and entered the Executive Committee. P

at present, Li Ning Co CEO position vacancy, by TPG partner Jin Zhenjun as executive director and executive vice president of the company, Su Jingshi, chairman of China business division of Yum Sun Restaurant Group, is an independent non-executive director of the company. Before hiring the new chief executive, Li Ning Co will be led by the founder and executive chairman Lining and Jin Zhenjun.

the company said Lining will be mainly responsible for the external affairs and relations of the company, while Jin Zhenjun is mainly responsible for the internal affairs and operation of the group, and will promote the pformation of the group during the pition period.

, according to Li Ning Co executives, "nearly two months ago, Jin Zhenjun has done a lot of work."

Jin Zhenjun, a Korean American who graduated from Harvard University and worked in McKinsey and DELL, is now a partner in private investment firm TPG and head of Greater China in the world.

Li Ning Co did not accept the request of reporters for the development of the Li Ning Co.

Lining P wrote in his 2011 earnings report before returning to the company: "as a founder of the company, it is my dream to make a Chinese brand into a world-class brand and lead the group to become an international level enterprise. This will not change."

< < a href= > http://www.91se91.com/pioneer/ > > Zhang Zhiyong < /a > mission has been completed > /strong > /p >

Lining has always had a strong desire to make Lining brand a world-class brand and to manage the company with professional managers is the direction he has always determined.

1997, facing the impact of the Asian financial crisis, Li Ning Co embarked on the road of change and cleared the management of family members. Zhang Zhiyong emerged.

"(last century)" at the end of the 90s, the company was developing a ERP enterprise management system, not only in the sporting goods industry, but also in other industries.

Many people mentioned Zhang Zhiyong's achievements in his early years and talked about ERP.

according to the introduction, ERP can do it completely. Whenever a shoe is looked at, it will be able to find out which factory is produced and what processes it has gone through.

It is a very good system for process management, cost control and information sharing throughout operation.

Zhang Zhiyong is one of the core members of the group.

"he had done finance before, and managed too much company, after some experience."

A person close to the Li Ning Co said that in 2001, Chen Yihong, deputy general manager of the company, recommended Zhang Zhiyong when he left the office.

February 2001, Zhang Zhiyong was appointed general manager of the company.

Zhang Qing's impression is that Zhang Zhiyong is a very intelligent person with strong learning ability.

"he likes reading books. He often recommends us to read all kinds of books.

He likes to absorb new things, and in his mouth, there are always some new terms.

Zhang Qing said.

Less than P, many Li Ning Co people can not describe Zhang Zhiyong in a particularly accurate way, but everyone can basically reach a consensus on his "very preference for numbers". "The pressure from the investors committee is enormous."

"Zhi Yong led the company from 1 billion to nearly 10 billion, and spent 11 years, but how could it not break the threshold of 10 billion?"

An executive at Li Ning Co said Zhang's mission has been completed.

another company executive said that for a long time, Lining was wobble in the strategic choice between sports and fashion, and in many fields such as outdoor, badminton, table tennis, running and other multi brand layout, "the bigger the booth, the more manpower, material and financial resources, which is a real problem."

in the industry, Lining brand has no confidence in himself. A confident person will stick to his things, be confident and open.

The information conveyed by Lining brand lacks this.

there were wolves behind the tiger .

on the one hand, Nike and Adi have begun to exert their strength in the fixed line market; on the other hand, Anta and PEAK are pressing domestic brands.

in the face of crisis, in addition to personnel adjustment, Li Ning Co has begun to adjust its response in other aspects.

Not long ago, P announced that the Li Ning Co announced the double-digit decline in the total volume of orders for Lining products in the fourth quarter of 2012. It announced that it would reduce the exclusive concession period of the 10 year Lotto (Le Tu) trademark until 2018.

> a href= "http://www.91se91.com/news/index_c.asp" > Lotto < /a > is the brand of Italy. Lining has been authorized to operate it since 2009.

However, in Lining's multi brand camp, Lotto has been running a deficit for 3 consecutive years.

The company said that it will make full analysis and evaluation of existing brands and focus more on core businesses.

in June this year, the company also revealed that it had signed a contract with CBA to become the equipment sponsor of the league from the 2012-2013 season to the 2016-2017 season.

This is regarded as a signal of Lining's return to sports strategically.

there are media reports that Lining will pay up to 2 billion yuan for this sponsorship, with an average of 400 million yuan per season.

In 2004, when Anta signed CBA's sponsors, the amount was 3 years and 60 million. Even after the renewal, it still averaged 20 million yuan per season.

in fact, Lining was the first basketball player. It was earlier than Anta and PEAK.

However, the first sign of CBA was PEAK.

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Li Yuanwei, chairman of the former Chinese Basketball Association and director of the basketball management center, went to the Li Ning Co to communicate with P to sponsor CBA, and spoke with Mr. --EndFragment--.

An insider who declined to be named said that the CBA League was not as hot as it was today. At that time, including ADI, Nike and Lining, they were not too optimistic about the tournament.

"after PEAK terminates the contract, Anta is bent on rushing ahead of the game, pulling out the money doubled to make the CBA League."

Anta took Anta from PEAK for seven years.

Anta takes the opportunity of China CBA to become famous overseas.

in fact, Lining has been in a severe situation before the wolf has a tiger.

On the one hand, Nike and Adi have begun to exert their strength in the fixed line market and gradually enter the three or four tier cities in China.

On the other hand, Anta and PEAK are not only CBA, but also the strategic partners of the Chinese Olympic Committee.

from the latest order data, Lining came to the five sporting goods company in Hongkong.

The order meeting data is the basis for the performance of sports products listed companies.

distributor continuous loss

the dealer champion said that the loss has begun in recent two years. It is believed that the blood contact between the company and the dealer is weakening and the brand remolding is logo.

Lining brand Sichuan dealer boss Zhao Yu recently met Lining himself.

Zhang Zhiyong left office CEO and Lining returned to management company. The management announced the blueprint for growth and formulated three stages of the plan.

The first is to improve channel inventory and enhance channel profitability.

Zhao Yu is the first distributor of Li Ning Co.

"In 2008, we felt that the market was very good, and we were courageous enough to order a lot of goods.

But I didn't expect the market to become so fast that the supply would be bigger than the sales, and the commodities would be damaged more severely.

Zhao Yu said that Lining failed to solve the inventory problem in time, and some dealers' support was not in place.

"now the cost of running a store is much larger than before, and the profits of dealers are quite different from before."

He said, in the past few years, everyone has been crazy to open shop, you robbed me to raise the cost of the shop.

"I was the champion of the 12 years of sales in the whole country, and this also fell, and I began to lose money in the last two years."

Zhao Yu said.

Li Ning Co has more and more layers. The influence of the company's culture on dealers is fading away, and the blood contact with distributors is weakening.

Dealers also reflect that it is hard to see the CEO at the moment.

At the end of 2010 P, Lining integrated the distribution system and had a "closed shop storm".

As the company decided to implement the strategic adjustment of "value consumption led", it decided to close 500-600 stores with poor performance. The strategy raised by Zhang Zhiyong was "big fish eating small fish", which, to a certain extent, damaged the interests of some dealers.

"some small customers in some areas do not take the goods, we have to digest our inventory."

Zhao Yu said.

Zhao Yu still feels that Lining's 2010 brand reinventing for logo is not the right time.

however, Lining's own return made him feel the return of the spirit of the enterprise. "We are heading for Lining. Lining will not give up. We will not give up."

Now we must stick together, and the most important thing is to stabilize the market.