Lining Performance Again Reported Huge Losses Channel Reform Locked City Community Store

After experiencing the pains of large scale clearance and inventory clearance, Lining, a sports brand, will have a new layout in the channel.

A few days ago, Li Ning Co responsible person briefed the Beijing Business Daily reporter that the company will carry out channel innovation next, including urban community stores and other special sales channels.

In the industry's view, channel innovation is hard to become a life-saving straw for Lining's continuous loss performance. The product positioning that has gone through a detour and the company management to be improved has become a difficult problem for Lining to solve.

Last week, Lining announced that the net loss attributable to the holders of the rights and interests of the company up to December 31, 2014 was not expected to exceed 820 million yuan.

This figure has increased considerably compared with the deficit in 2013.

In particular, Lining has been losing money for many years and lost about 1 billion 980 million yuan and 390 million yuan in 2012 and 2013 respectively.

As for the loss of performance last year, Lining explained that the initial investment required by the company's change plan launched in July 2012 (hereinafter referred to as the "change plan"), coupled with the previous clearance of channel inventory, reduced delivery, provision for bad debts and other expenses, resulted in a loss of 586 million yuan in the first half of 2014.

In the second half of last year, Lining continued to invest in the change plan.

"The benefits of investing in the scheme can only be reflected in financial performance for a while. Therefore, in the short term, Lining's business and financial performance indicators remain under pressure in the first half of 2014 and affect the profitability of the second half of 2014."

Lining said in the announcement.

Faced with persistent losses and tight funds, raising money has become a top priority for Lining's change plan.

According to Lining's previous announcement, the public offering can be issued on the basis of the 5 benchmark securities issued for each share holding 12 shares of the existing common stock, and the stock can be subscribed to the common stock or the convertible securities can be exchanged at the subscription price of HK $2.6 each.

In this way, we need to raise about HK $1 billion 518 million -16.95 HK dollars to fund the next stage of operation and optimize the capital structure of the company.

With capital support, what is the focus of the next change? Lining recently disclosed in an interview with reporters: "next step, Lining will take the pace of channel innovation, including opening up high-end products in the collection sports life.

Special sales channels such as urban community stores and sports shoes monopoly stores.

According to the introduction, the LNC shop has both professional function and fashion factor, mainly located in high-end shopping center.

In addition to offline, Lining said, the company also has expansion plans online. Not only will it continue to invest in the electricity supplier, it will gradually build the Lining ecosystem based on the Internet environment, and enhance the online and offline communication with consumers through the advantages of the Internet.

In the industry view, this layout highlights the ambition of Lining to overweight O2O.

"Online and offline integration is a trend, but it is a money losing job, and at present, this mode is still in the exploratory stage. How to excavate the characteristic sports culture becomes a difficult point."

A sports industry insider said.

Experienced rapid expansion and erroneous strategy, and faced with high inventory problems.

It has already been used in channels.

In 2012, when Li Ning Co began implementing the change plan, the company announced that it would implement a large-scale one-time channel revival plan to solve the problem of excessive sales, including the excessive inventory. The estimated cost is about 1 billion 400 million -18 billion yuan.

In recent years, selling stocks and closing stores has become the key word for Lining's development. The company has also sacrificed profits and lost market.

The number of stores decreased from 7303 at the end of 6 in 2012 to 5671 at the end of 6 in 2014, a net decrease of 1632.

According to the introduction of independent critic Ma Gang of shoe and clothing industry, the total number of Lining stores and

The net difference has expanded considerably, and the market share has further declined.

However, in the first half of 2014, the percentage of Lining's direct sales and sales to Lining's income increased compared with the first half of 2012. The direct retail business increased from 646 in June 30, 2012 to 1119 in June 30, 2014.