Lining'S 12 Reflections On Reconstructing The Shoe Empire, Can The Last Stroke Come Back To The King?

Since returning to the essence of sports in 2012,

It has carried out a series of strategic reform measures such as closing stores, stocktaking, reshaping the supply chain and revitalization of channels.

The Li Ning Co interim results announcement 2014 showed that the number of shops in Lining regular stores, flagship stores, factory shops and discount stores was 5671, compared with 244 at the end of last year, while at the peak of the crisis, Lining had more than 1200 stores annually.

On the premise that the sporting goods brands such as Anta, PEAK, 31st degree and Pathfinder have already realized their profits, Li Ning Co has recorded a loss of 586 million yuan.

There is a strange cycle in the history of Li Ning Co: whenever Lining decides to change, the promoters or the sword players are professional managers, but once the reform fails, the outcome of the story is that these professional managers pay their tuition fees and leave the company with their own careers.

From Wang Li of Baleno and Xu Weijun from Coca-Cola to Lining Lining from Le Shuyu, Xu Maoxun from Shi Wei, Xu Maoxun to Lining, and then to the pformation of the sword, ultimately, we can only go away gloomy.

Recall the pain

Lining said that consumers most want to see the real Lining, rather than their own soft, others black Lining.

In promoting the running category, the company did not invest much, and the promotional activities also had running attributes and professional attributes. Although there was no improvement in short-term sales, Lining believed that the future would help the brand.

Some consumers (runners) took an active part in Lining's activities, while receiving the knowledge of running, they re recognized Lining's brand and bought Lining products.

There are also consumers who believe that Li Ning Co spend a lot of money on activities.

There is a consumer Accusation: "to put it plainly, that is, the brand is not hard enough, and the shoes are still expensive to sell, which can not support them."

Another consumer is bluntly pointed out: the Li Ning Co is lacking in executive power and innovation.

Lining self introspection, feel that these years did not lose their good strategy, good innovation, this is recognized in the industry.

How many cattle people, how much advice you have consulted and how many attempts have been made are hard for many other domestic sporting goods companies.

Of course, "Zhongnanhai is not a policy", which is also acknowledged.

Why is there such a problem? Of course, there are executive problems, such as why do they do rotten? Why can't CBA promotion be done in China? The online shopping mall is very big, and why not sell eleven double?

Lining acknowledged that the employment problem is also a big reason for the company's difficulties.

Why is the executive power poor? It is mainly the problems existing in the human system: rewards and punishments are divided, and the system of big meals has created a characteristic of "people being unaccountable". After all, most people do not have the lofty spirit of "not beating the whip."

No wonder the outside world is black: "no state owned enterprise, got the disease of state-owned enterprises".

Lining believes that all kinds of problems have a strong causal relationship, and really can not be said to have nothing to do with success or failure.

It seems that the success and execution of an enterprise are closely related, but the ultimate success of an enterprise is to create value for the society.

It's terrible to regard entrepreneurship as an idea. We should know that innovation is not an end, and innovation is a means to meet the needs of consumers.

For example, apple made smart phones, 360 made free antivirus software, Tencent made WeChat, unified sauerkraut beef noodle and so on. They had one thing in common and created new value, and this value better satisfied consumers and changed human life.

Why don't they say their success is due to their execution?

Undeniable,

The industry does not have such high technical barriers.

Today you have developed a new concept of sports technology and new sports, and your competitive brand will do the same next day, especially when you are not the leader of the industry.

If Li Ning Co wants to insist on doing retail business, it is really necessary to do things well.

Innovation, strategy and execution are complementary to each other.

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12 reflections

Lining has made a deep reflection on some of the deviations of the previous company's development process.

(1) market saturation: the sporting goods industry is no longer an industry that can make money by opening more stores through channels. Consumers are mature, and more and more international brands are coming to China to make competition more and more intense.

(2) blindly seeking big: accustomed to extensive mode of pressing goods to dealers, overestimating the market's digestion ability and the influence of its own brand.

After 08 years of Olympic Games, we expanded blindly, expanding new businesses and developing overseas markets.

At that time, how pressed goods were later eaten back (we call revival plan, buy back the old inventory of dealers), the domestic and international market crazy enclosure, led to Lining shop down one by one.

(3) too much pressure is too heavy to be returned; the order will be slow and the stock will always be a pain for the garment industry.

When we find that customers have no funds to get new products, they can only sell old goods, old goods are discounted, and no money is made. When the vicious circle is gone, the company is powerless.

(4) poor execution: Li Ning Co has invited many consulting firms on tall buildings to recruit many senior seniority seniority.

But the idea is too good and the execution is too bad. Many projects that are very promising in the industry have not been carried out.

When we do not take into account the promotion business and do it in order to do it, no one will really work hard to cooperate with it, and this project will be close to death.

(5) the strategic direction is not clear: in the eyes of everyone, Li Ning Co is a master of disease and disorder. The result is that all the fairies appear on the scene and regard it as an experimental field of various projects and ideas.

Such as sports brand, signed CBA and Wade, stopped the contract of Lotto, and began to start the sale of Korean design.

(6) did not make good use of the resources: signing Wade for ten years, one hundred million dollars, signing CBA for five years, 2 billion yuan, signing the national feather Lin Dan, and then implementing the "revival plan" and so on, and spent nearly 5 billion RMB, but how much money can Li Ning Co make in these two aspects? Sincerely speaking, Lining shoes is absolutely the conscience of the industry, and hastily signed Wade, because of a series of works such as capacity, marketing and distribution, which are not well prepared, resulting in the eventual waste of opportunities.

(7) crisis public relations consciousness is not strong: in this network information explosion society, it is really a good thing not to go out for a lifetime, bad things spread thousands of miles in minutes.

Lining, who is a national enterprise, has no experience and no experience in crisis public relations. This is a very profound knowledge. If he plays poorly, he will undoubtedly ruin his good reputation.

(8) marketing is baffling: in recent years, advertising has smashed money, but the effect is not good, consumers do not buy it.

Like many years ago, the ad that Damon Jones wore in his basketball shoes was no longer seen.

(9) lack of product competitiveness: This is a very important reason, because after all, the product is the core, and the fragrance is not afraid of the alley. If the product is not good, it will probably be futile.

Lining's product quality is still the best among domestic brands, but limited by cost, there is still a gap between ADI and Nike.

(10) professionalism remains to be improved: I think the most attractive part of sports products is professional.

Take basketball shoes as an example, slow motion, starting, safety, light and other aspects are very important for basketball fans.

If our products are technically stagnant and let people feel outdated and obsolete, it is hard for consumers to have a strong desire to buy again.

(11) fashion is not enough: sports products after technology, it is fashionable to compare.

Wade is really old again, and the Blitz is no longer a knee injury.

Signature shoes are not ugly and have many colors.

Lin Dan is a strong badminton player but still a small ball after all.

There are also a variety of hawks, shoes, dragon name, and fashion is not.

In this era, it is hard to survive without fashion.

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(12) price positioning should be more marketable: do not consider the price performance ratio, buy the most expensive things within the limits that you can afford.

Compared with Nike and Adidas, Lining's price is not high, but why do you still think it's expensive? Because Lining doesn't have a so-called low end product line.

Why consumers want to buy Lining, a domestic brand, is what we need to think about.

Final stroke

Radical and rapid expansion is the conclusion of the Li Ning Co's dilemma.

Open your eyes, where is the way out? Now, will Lining choose to be conservative and steady? The answer is: no! As for how to say outside, "they are still saying that we are dead!" Lining mocked himself. "The outside world should give Lining some time."

Don't always say that time waits for no man, but second days to die. It's not that simple. "

In November last year, after Jin Zhenjun left, the Li Ning Co change plan was pformed from a former professional manager to Lining himself.

Obviously Lining did not like the word "mountain climbing". He said, "that's what your media said. I have been outside the mountain and not in the mountains."

After reopening the company, Lining said frankly: "the past days seem to be coming back again. I used to be more flexible in dealing with public affairs, but now I need to take part in the rigorous process of the company."

Wang Yafei, a professor at Peking University Guanghua School of management's EMBA center, uses Lining's teacher as saying that although some people have a strong objected to Lining's ability, he has no opinion on Lining's character.

In December 2014, Lining refolded the stock price to raise money, which would be 1 billion 518 million to 1 billion 695 million Hong Kong dollars, which was generally interpreted by the industry as the "last stroke" of Lining.

In fact, after more than two years of adjustment, Li Ning Co has cut nearly half of its stores.

A Li Ning Co observer for many years believed that this round of structural adjustment is actually the last step of Lining's strategic adjustment.

Mr. Lining, who can do the same thing, "return to the essence of sports, control the scale of shops, reshape the supply chain" and so on, depends on how the model works in the future.

To this day, Lining has few bright spots in new media marketing.

Lining did not shy away from these problems. His reconsideration was "in China, the sports marketing did not exist in the past."

Lining pointed out that the Chinese sports brand, no matter which star or event they have signed, is only advertising. "Even if Reebok signed Yao Ming, how many Yao Ming products were created?" he admitted that Li Ning Co herself was the same. From the earliest Damon Jones to "shark" O'neal, the utilization rate was very low. "The real value of marketing is to affect your consumption behavior, but we failed to do it."

Lining said: "the enterprise does not have so many democracy. What the chairman should do is to specify the future direction for the company. Whether this direction is right or not can only be tested by the market in the future."

Sports brand may not be able to maintain the growth space of 14-15% as Lining thought it might be.

But for Li Ning Co, at least one thing is certain now, that is, the direction will not be shaken again, it will focus on sports and focus on the Chinese market.

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The return of the king?