The Causes Of Lining's Brand Decline: Genes, Fatalism Or Times?

In mid August, Lining announced the mid 2014 report. Not surprisingly, this is a worsening loss report. In the institutional rating, except for Goldman's "buy", other institutions are almost all "sell" ratings. In the well placed seller research market, they are generally on the verge of bankruptcy, and the companies with extremely poor fundamentals will get the treatment. In 2010, Li Ninggang released the slogan "make the change". By now, some advertisements that are so encouraging have been forgotten. In the past 4 years, it seems that the real make change has only a drop in its performance and a miserable stock price.

　　 Change or not? That's a problem.

There are different opinions on the reasons for Lining's failure. In the big environment, from the beginning of 03 years, the sportswear and leisure clothing industry has expanded greatly and reached the peak of production capacity in 2010. Naturally, it is a general stock accumulation. Self strategy, in 2010, Lining made a big strategic transformation, publicizing Lining after 90, and entered the international arena, but for "after 90 Lining", 90 may not buy, but lost many young and middle-aged users. And on the road of internationalization, it seems to be inadequate. In addition, Nike's price cut in 2011 has made a great impact on the market positioning of Lining in the second tier cities.

Post 90s Lining advertisement

In any case, successful enterprises are always similar, but unsuccessful ones are different from each other. When we talk about the reasons for Lining's failure, we can list a lot. But in every case, every enterprise is bound to encounter bottlenecks when it develops to a certain extent. At the peak of 2010, Lining did not find this problem. He also tried to find a breakthrough, change the brand logo and sponsor international competitions. In the process of breaking through, you must avoid the old patterns and logic of success and explore new ways. But after this breathtaking leap, there were few success.

Why is there little success?

First of all, your past success may be due to the adaptation of your genes to the old environment. Just like you are a very good investment expert who is very good at judging the trend, when you suddenly come to a market environment with stock picking as the king, you will have a hard time adjusting to it.

Second, the international market is different from China's environment. It's like you are the biggest fish in a lake, but in the sea, not only fresh water becomes salty water, but also you will face shark competition. If you can't get a bigger fish, you will eat it instead.

Finally, businesses are made up of individuals and are as accustomed to doing what they are good at as individuals. In order to reform, every cell in an enterprise needs to change its concept, which is not easy.

Lining was also faced with such confusion when he was in transition. When Lining answered a reporter's question, he said his genes were still an athlete. He will never give up and hope that his own business can get rid of the sense of local Shanzhai. But in the face of 50 year old Nike, and 90 year old ADI, Lining is both unfamiliar and naive. In the end, Lining not only won a cup of tea in the world, but also his own traditional position, which was also carved up by ADI and Nike. From 2010 to 2014, the market share of domestic Adidas and Nike has increased from 25% to 35%.

On the contrary, the Anta of Jinjiang did not have a "champion's heart". He knew he was just a businessman who ran from Jinjiang to Beijing to sell shoes successfully. The gene of a businessman decides whether he will be able to enter the international first-line brand as long as profits are king. Anta knows very well that he has several catties and knows how to earn his own money. So when Lining was facing the giants in the core city and the international market, Anta was taking the strategy of encircling the city by the countryside, laying a wider channel for himself in the rear area, which is the difference between a businessman and a champion athlete.

Comparison of performance of Lining, Anta and PEAK in recent years

Therefore, change or not? This is a problem. Which direction to change is also a problem. Lining's character decides that even if he breaks his head, he also wants to stand on the podium of world-class events. Therefore, he would rather be broken and never be destroyed. If he is a businessman, he will estimate the risks and benefits of the reform and look at himself in a more rational way.

What can I do to save you, Prince Lining?

Can it be saved? I asked a researcher who studied Hong Kong stocks for many years. She said, "I don't have much hope. I don't need to see it."

I don't know what it feels like to hear Lining himself. In 2008, he lit the Olympic flame on behalf of China. This is a peak of his life, 2009 years, and also a peak of the company. And now he may understand. Change is more difficult than winning a championship. "Making the change is not always possible."

Because sports and leisure products industry in China has about 100 billion of the market size, after 2010, it has been very difficult to grow. After the end of the expansion of the total expansion, it is followed by the confrontation between brand and capital. Up to now, only 6 billion of the sales scale of Lining, it is difficult to compete with the international giants. In the face of losses, Lining not only can not sponsor international competitions, even domestic sponsorship has become a burden.

In fact, in the past four years, Lining was the only one who died. When NOKIA officially retired from the stage this year, CEO Ollila said, "we didn't do anything wrong, but somehow we lost." Lining has only 20 years history. These two decades are basically the fastest growing period of economic growth in China's history. Lining was born at the same time. NOKIA, which has a history of 150 years, from pulp to telecommunications, and mobile phone manufacturing, went through life and death businesses in 90s. The inventor of the intelligent machine also lost the battle in the face of the biggest mobile wave in history.

And how can you save it? Maybe you will sum up a series of reasons, such as the failure of Lining's brand building, and NOKIA's failure to attend the Symbian system. But in fact, in fact, the success or failure of an enterprise has its fatalistic elements. Just like the founding of the Rome, the Rome Legion was once the invincible war machine in the Mediterranean region, and hundreds of years later, when the barbarians of Northeast China came, they became vulnerable. Perhaps you will be self absorbed in this failure, and even some scholars believe that the toxicity of lead in Rome sewers. But in fact, on the road of innovation, there are also thorns. Success requires a lot of conditions to happen occasionally, and failure requires only one reason.

NOKIA former CEO Ollila

　 In other words, why should we save it?

Lining, in the eyes of the last generation of China, is a symbol of national pride. In that era, international sports were given more national missions. For Lining himself, too. At the headquarters of Li Ning Co, Lining's statues and statues can be seen everywhere. It is the famous "Lining crossover". But now, who can remember the cross of Lining? Not only did not know Lining crossover, I am afraid even Lining is, after 90 children can not be called out. If you really want to be younger, you should first learn to see the world with young people's eyes.

And the strong sense of national pride brought by Olympic champions is also going away with the age of a generation. Nowadays, what we are more concerned about is our own life and actual feelings. Just like this year, Shui Junyi mentioned Lao Lishi once said in micro-blog: "the Asian Games in 2010, the country needs me, I can still strive to sprint." And Lao Lishi himself responded, "I am not jumping for myself now!" behind Lining's weakness may, to a certain extent, also mean the passage of an era. In Lining's market research, he found that his users were always middle-aged. Perhaps it is not because Lining has always been in the middle age, but the young people of that era, who are old with Lining. And the newly grown young people will not be touched by Olympic champions. They are more concerned about personality, vitality and quality, and they prefer Nike and ADI.

　 So, what can I do to save you, Lining?

The pattern of success in the past may become the shackles of future progress. Perhaps, only by forgetting glory, laying down the figure, or having the two determination to start a business can Lining brand shine again. Perhaps when Lining forgot to cross Lining, it was also the time to achieve self salvation.