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    After Two Years Of Reflection, Lining Reshaped The Platform.

    2014/4/3 10:57:00 8

    Sporting GoodsSportswearLining

    "At present Sports goods There is no fundamental change in the issue of industry homogenization. It will take some time for the industry to recover. " This is Li Ning Co's view of the current market situation.


    Due to the blind expansion in the early stage, the domestic sports brands encountered high inventory pressure in 2011, and the sound of domestic sporting goods industry closing, heavy discounts and layoffs continued. After two years of reflection, the fever gradually subsided. From Lining, Anta, PEAK, 31st degree, China trend and XTEP's six domestic sports brands released 2013 earnings report, in addition to China's net profit growth in 2012 compared with 2012, the remaining 5 companies' income or net profit is not satisfactory compared with 2012, although such performance is better than market and institutional expectations.


    Domestic sports brands also believe that the industry has begun to pick up, which has been seen from the growth of orders in the first three quarters of several brands in 2014. Since 2012, Lining did not publish the data of the order meeting. Although 2013 was the only unprofitable stock in major sporting goods stocks, its direct retail sales accounted for about 1/3 of the sales of Lining brand. The proportion of new products in channel inventory rose to 2011 levels, and the sales volume of new products also increased in the second half of 2013. Its net profit of 390 million yuan in 2013 was 1 billion 980 million yuan higher than that in 2012, and its performance was also greatly improved. Gross margin was significantly improved to 44.5% compared with 37.7% in 2012, showing a strong profit margin.


    "The most difficult days are over." Jin Zhenjun, executive vice president and acting chief executive officer of Li Ning Co and chairman of Anta Sports Products Limited board and CEO Ding Shizhong, said in August last year and February this year. However, the inventory problem of the domestic sporting goods industry has not yet been solved. According to the 2013 annual report released by the major sports brands in China, the inventory of Anta, PEAK, 31st degree, China trend and XTEP is 689 million yuan, 366 million yuan, 409 million yuan, 183 million yuan and 537 million yuan respectively. In addition, the fierce competition brought about by the homogenization of the industry is also a huge problem.


    "The traditional wholesale mode of Chinese sporting goods enterprises is based on pure network expansion strategy, and has led to excessive expansion in the past few years. Traditional mode also lacks direct communication with consumers. This business model can not cope with the trend of rapid change and market demand. Therefore, leading enterprises with innovative and differentiated strategies will have the ability to stand out in this market competition. Li Ning Co thinks so, and took the lead in carrying out thorough and thorough reform in the industry in July 2012. It has become the first retail oriented transformation company in China's sporting goods industry, from the traditional wholesale mode to the "guided ordering order + quick replenishment + quick response".


    In addition, Lining resolutely withdrew from the non-profit market, cleaned up non-profit products and channels, and optimized the sales network and closed down inefficient stores, focusing on five core sports modules, basketball, running, badminton, training and sports life. At the same time, it has invested heavily in product research and development, and launched Wade's professional basketball. shoes And Li Ningyun's running shoes designed to meet the unique needs of Chinese consumers.


    Other well-known domestic sporting goods companies are also beginning to realize the seriousness of homogenization competition. Anta also proposes to further enhance the differentiation of Anta brand and products. Its chairman and CEO Ding Shizhong also believes that "I believe the industry will differentiate in the future, the market will become more and more focused, and integration is still not completed."


    "We believe that a brand must have something to do. We are gradually abandoning the homogenization of business, although these businesses can still bring considerable income, but they or leisure groups. clothing There is a coincidence between the business or the value orientation of Lining's core brand. " Li Ning Co told China Economic Times reporter. Lining, founder and executive chairman of Li Ning Co, said: "Chinese consumers are becoming more mature and more interested in sports. Clothes & Accessories Higher quality, value and performance. We need to constantly meet the needs of consumers and create a perfect fusion of sports culture and product functions with fashion. "


    Li Ning Co believes that the expenditure involved in the recovery plan, the optimization of wholesale sales and the adjustment of the sales network is a major factor affecting the financial performance of the group in 2012 and 2013. "In view of the strong performance of new products with high profit margins, the negative impact of change on our performance is expected to shrink significantly in 2014," he said. But Li Ning Co also said that the weak channel partners, the old inventory clearance process and the uncertainty of the market will still bring challenges to its deep reform.


    However, Li Ning Co focused on the strategy of the five core sports sections and targeted marketing methods, which made Li Ning Co 2013 a gratifying change. It also indicated that it would continue to make decisive and wise investment, enhance brand recognition and improve product sales. Jin Zhenjun even mentioned the word "expansion again" when he published the 2013 annual report of Lining. He said he would "invest wisely in accordance with the reform plan".


    Li Ning Co plans to fully promote the retail business model in 2014. "In 2013, the main focus was on the implementation and operation of this model. In 2014, Li Ning Co began to push for more large-scale coverage on the basis of successful trials." At the same time, Li Ning Co said it will continue its network optimization strategy to shut down stores with poor performance, low profitability and low efficiency. "But Lining The company is in the final stage of rectifying its business and is reconstructing the platform of Li Ning Co to achieve sustainable development in the future.

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