Lining Failed To Make Profits For Three Consecutive Years

Authoritative information revealed that Lining lost 820 million yuan in 2014. Before the 2012 fiscal year and 2013 fiscal year, Li Ning Co lost about 1 billion 980 million yuan and 390 million yuan respectively.

At this point, for three consecutive years, Lining, who could not achieve profitability, seemed more embarrassed.

In November 17, 2014, Lining (China) Sporting Goods Co., Ltd. announced that the board announced that Kim Jun Chun retired from acting as chief executive officer in November 14, 2014. Before the new chief executive took office, the position of chief executive was fulfilled by Mr. Lining.

As for Jin Zhenjun's retreat, people in the industry generally believe that they are not well aware of the local market in China. Korean American Jin Zhenjun has no "experience of grass roots work and life", and the complexity of the Chinese sporting goods market is obviously beyond his imagination.

His departure also declared that Li Ning Co failed to win the match.

The other side is Ding Shizhong's wanton smile.

More than a month before Lining changed her presidents, Anta formally signed with NBA in October 13, 2014 to become an official NBA market partner and NBA licensing company.

Ding Shizhong, chairman and CEO of the board of Anta (China) Sporting Goods Co., Ltd., released a bold statement on the spot: "sign NBA, make China basketball market the first."

In fact, Anta is not only the No. 1 basketball market at this time, but also has surpassed its rival Li Ning Co in many aspects, such as sales volume and market value.

What caused the plocation of the market hegemony? Why did Lining fail? How did Anta flow upstream? Lining followed the brutal growth period of China's sports brand, and was also one of the famous local brands growing up in the "golden age".

In 1990, the world famous gymnast Lining founded the sports brand named after his name. At the beginning of the company, he began to cooperate with the Chinese Olympic Committee. Lining himself tirelessly appeared in various sports events and activities.

For a long time, in the eyes of Chinese consumers, Lining

It has become the symbol of the country.

At the opening ceremony of the August 8, 2008 Beijing Olympic Games, Lining, wearing his own brand sportswear, lit the Olympic torch under the eyes of billions of people. This is an excellent epitome of Lining's "golden age".

In that year, Li Ning Co's revenue was 6 billion 690 million yuan. After only one year, it increased to 8 billion 387 million yuan, which exceeded Adidas's sales volume of about 7 billion yuan.

Behind the sales is the contribution of the horse race enclosure. In 2009 alone, Li Ning Co opened 1239 new stores and reached 8156, creating the largest sports equipment distribution channel in the country.

By expanding its performance, it also has hidden dangers.

After the Beijing Olympics, the Li Ning Co set up a new business development plan, which threatened to achieve 20 billion yuan revenue in 2013 and strategically focused on the international market.

To achieve this ambitious plan, Li Ning Co launched the brand reengineering project in 2010, replacing the new LOGO and slogan, positioning the brand as "fashion, cool, global perspective".

For a time, "90 after Lining" advertising spread everywhere.

The most direct result of such a market strategy is the rise in product prices.

In one year, the Li Ning Co made three successive increases in prices, ranging from 7% to 17.9%.

Take sneakers as an example, the price is adjusted from two hundred or three hundred yuan to four hundred or five hundred yuan after brand remolding.

Such a price is obviously high for the consumers who are positioned. Why do they not choose foreign brands such as Adidas and Nike at the same price?

The change of strategy not only made Lining's products lose the advantage of the original cost-effective, but also made the brand "Lining" gradually move away from the original 70 and 80.

。

Soon, the market will also be in color.

According to the 2011 earnings report, Li Ning Co's annual inventory amounted to 1 billion 133 million yuan, causing its early warning in 2012.

2012, in the fourth quarter of June, the order volume reached a double-digit decline.

According to the 2012 earnings report, Li Ning Co's annual performance loss was 1 billion 979 million yuan, which is the first time that Lining has made a loss since he founded.

Then, in the 2013 fiscal year, Li Ning Co lost 390 million yuan.

2014 in the first half of the year, the Li Ning Co reported a loss of 586 million yuan, but in the first half of 2014 it closed 244 stores and abolished 3 dealers.

I have reflected on the reasons for the decline of the company's sales volume. He thought it was a strategic mistake first: "what is important now for Lining is that there has been a change in strategy.

In the past, the industry model was basically wholesale and retail, and now it has to change consumer demand.

Another change is that in the past we focused on sporting goods, but the core business was not specific, which became the turning point of Li Ning Co sales decline.

On the other hand, sticking to the development mode has become the second major mistake of Li Ning Co.

Li Ning Co has always adhered to the development mode of light company, that is, the development mode of production and sales outside, which led to Li Ning Co not directly facing consumers, but facing distributors and wholesalers from all over the country.

Therefore, Li Ning Co's product design is based on feedback from distributors and wholesalers, not the first reaction in the market, but slower in response to consumer demand and market.

"The most important strategic positioning and development mode failure of the company has led to problems such as poor sales, high inventory and runaway supply chain.

The performance requirements of listed companies, which also led to the eventual Li Ning Co personnel shock, the emergence of a succession of executives and other chain reaction.

It should be said that the Li Ning Co's failure and strategic positioning are not suitable for the current development, and the decline of performance is the result.

Li Jin, executive director of the China Enterprise Research Institute, once interviewed the media for such an analysis.

At the same time, abandoning the naming of famous events also aggravated Lining's decline.

As early as 2004, the Li Ning Co gave up sponsorship of the CBA League; in 2009, Li Ning Co gave up cooperation with the Chinese Olympic Committee; in August 2014, the strategic cooperation with the Chinese gymnastic team for 23 years was snatched away by Anta.

"Some of them are too casual. They should be cautious and do not give up a few resources."

A former Li Ning Co executive said.

Lining abandoned it and was picked up by Anta, and became the weight of his turnover.

The accurate judgement and unremitting insistence of market strategy and the ability to grasp opportunities are crucial factors for Anta to resist Lining.