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    Rapid Price Increases Lose Competitiveness: Lining Learned From Anta'S Lessons

    2014/12/12 11:28:00 30

    Price IncreaseCompetitivenessReform

    Recently, sources said that some Lining executives had already received an email notification, and Lining CEO Jin Zhenjun "left" Lining.

    In the 5 years, the famous local sporting goods enterprise has successively carried out 2 high-profile CEO.

    company

    The flag of change finally ended.

    Rapid price increases lose competitiveness

    Zhang Zhiyong is Lining's second CEO.

    It took over Lining's management power from Chen Yihong's hand, and brought Li Ning Co from the 1 billion Yuan era to the era of ten billion yuan.

    At the time of the company's 20th anniversary, Li Ning Co has more than 7900 stores in China, and also has sports equipment brand red double happiness, and has the French outdoor brand AIGLE and Italy leisure sports brand Lotto China operation right.

    Zhang Zhiyong also launched a revolution to make Lining fashionable and internationalized.

    In 2009, Lining officially signed the Spanish agency; in July 2009, the opening of Lining's Singapore shop; in December 2009, the Lining badminton store opened in Tsim Sha Tsui, Hongkong, China; January 2010, Lining's American shop opened; in June 30, 2010, Li Ning Co changed its bid.

    brand

    Reshaping.

    On the one hand, the new label has attracted the original verbal war of consumers who like classic labels, and has also brought inventory problems.

    The public announcement of the bid will mean that all the old items will be stored in stock. All Lining stores will need to clear their inventory in a relatively short time.

    And the new standard commodities greatly increase the price, directly lead to the loss of price advantages, so that Lining's products in the three or four line market lost competitiveness.

    Sustained loss of performance

    In July 2012, Jin Zhenjun took up the post of CEO as Lining.

    After that, Lining's brand contracted with the cooperation of Lotto and AI Gao to stop the sale of new brands, and basically stopped Zhang Zhiyong's multi brand and multi category layout.

    In terms of internationalization, Jinshi also contracted completely, closing the Hongkong store and withdrawing from the US market. In addition, affected by the economic crisis, Lining's Spanish agent also went bankrupt.

    In addition, the distribution of marketing resources has also led to the signing of CBA and NBA star Wade from the full flowering and contraction of Zhang Zhiyong era to focusing on basketball resources, giving up endorsement contracts with entertainment stars Lin Chiling, tennis star Cilic and Ljubicic.

    In the 2014 to 15 season, the CBA League is coming soon. As a sponsor and strategic partner of the league's official equipment, Lining will prepare several excellent boots for the league players.

    Kim's rejuvenation of Lining achieved some success: first, it pulled Lining out of the mire of stock; secondly, through the channel revival plan, it restored the confidence of dealers, and won a valuable opportunity for Lining's reform; again, it improved the efficiency of Lining's supply chain.

    Jin Zhenjun launched the fast and reverse commodity combination in Lining's original futures system, that is, fast selling products can be sold through trial stores, and if the sales are good, the market will be filled immediately. If the sales are not good, the production will be suspended.

    However, even so, Lining paid a higher cost, resulting in Lining's sustained losses in performance, declining market share, and no leadership in the industry.

    In November 14, 2014, part of Lining executives had received an email notification, and Jin Zhenjun "left" Lining.

    Zhou Yang, a brand expert, said that behind the resignation of corporate leaders, it was actually against them.

    market

    Strategic reconsideration.

    The essence of business competition is also that the winner is the loser.

    Selling connotation and telling stories

    Zhou Yang told reporters that the internationalization of Chinese local brands is not an easy task.

    Foreign consumers have always had a low quality and low price view of Chinese brands. Therefore, Chinese brands need to further explore the demands of foreign consumers, in addition to the innovation of products and services, and to maintain and strengthen the original positioning and characteristics of the brand.

    "Besides, for domestic consumers, Lining, the gymnast prince, is in the memory of people of a certain age in China, but it is much more fuzzy for young people born after 90.

    A lot of '70' and '80' consumers bought Lining's products because of their complex with Lining. But since 2010, Lining has lost a lot of original customers, but the "90's" consumers do not buy Lining brand.

    Zhou Yang believes that this can be regarded as a failure of brand innovation.

    Brand needs to be condensed into its own cultural connotations, just like Nike's brand culture connotation emphasizes the independence and individuality components of the American spirit, and firmly grasped the youth group.

    Improper positioning and blind expansion tend to be the beginning of a low ebb.

    In the process of product development and innovation, foreign enterprises all attach great importance to the cultural connotation of brand carrying. The products developed are often refreshing, rather than selling products and selling storytelling and storytelling.

    Zhou Yang said that Lining's failure clearly gave a deep lesson to Anta, a well-known sports brand in China. In order to avoid repeating the mistakes of Lining, Anta implemented the retail strategy.

    At present, Anta has formed a retail culture oriented business culture and values that match the retail mode.

    Anta has gained a common understanding that it is the only right choice to sell the channel terminal and sell the goods, and the rest is empty talk.

    For Lining, who has been changing the logo and positioning, Anta is obviously dismissive.

    At the same time, Anta has established a consumer oriented retail management system, and the operational efficiency evaluation system has also been completed.

    Anta CEO Ding Shizhong once said, "Anta is willing to pay high price to compete with strong international brands.

    I want to be a real "national shoes" so that more people can really afford it. I want 1 million people to play basketball in my shoes.


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