Li Ning Co Pformation To Catch Young Consumers

Although Lining has regain control of Li Ning Co, the company's latest financial report is still not beautiful.

Li Ning Co reported 2014 earnings, the loss increased from 392 million yuan to 781 million yuan - this is a third consecutive year of losses.

The increase in earnings is one of the few positive results for the company, which is under pressure from the stock market. Li Ning Co increased its revenue to 6 billion 730 million yuan in fiscal year 2014, an increase of 15.5% over the previous year.

Lining's return was due to a vacancy in the company's CEO position.

As a shareholder of TPG investment group, Jin Zhenjun, a professional manager, left office in November 2014. After the airborne Li Ning Co in 2012, Kim made a plan for restructuring and strategic pformation of the local company in November 2014.

The Li Ning Co announced that Lining will remain in office during the pition period with the executive vice chairman and executive director of the company, and the board of directors of the company is still looking for someone to take up the post.

The most important goal of Lining's return is to make the brand regain its profitability.

In 2014, Li Ning Co had been in a state of strategic contraction.

In addition to giving up sponsorship of traditional Gymnastics in sports marketing, as of the end of 2014, there were 4424 franchises in Lining brand, which was 11.3% lower than that in 2013.

But at the same time, the expansion of the direct store network has opened 276 new stores, reaching 1202, an increase of 29.8% over the same period.

Lining hopes to upgrade products, channels and retail businesses in two years.

And efficiency, while reducing operating costs.

One manifestation of this change is that he is trying to intervene in company management in a deeper way after returning to the company.

Lining told the media, "in the past, the company has been trying to flattening management, and now the company has no marketing department."

The management structure of the company is product oriented.

At present, the number of people directly reporting to me is 50.

A person who has participated in Li Ning Co's product promotion bid told reporters that Lining will now go to see the product promotion plan personally, even including the same.

The details of pricing and slogans in the process of product promotion are discussed.

From the perspective of pformation, Lining's choice is still in the continuation of Jin Jin Jun period to improve efficiency, reduce inventory and cost pformation strategy.

The so-called pition period means a company keeps looking for the future direction.

The latest attempt is that Li Ning Co hopes to enter the market for smart running shoes.

In March 16th,

The company has reached a strategic agreement with the millet Bracelet manufacturer, Wah Mi technology, and the two companies are working together to create a new generation of smart running shoes. The first batch of products will be launched in the third quarter.

Li Ning Co announced in the announcement that the design team of millet bracelet will design smart chips for Lining's brand running shoes, which will include collecting data on motion data, gait analysis and other functions.

This means that Li Ning Co hopes to seize the demand of young consumers in integrating digital and sports.

This cooperation with Internet Co is the first time for local sports brands.

Li Ning Co seems to benefit more from this cooperation. Millet can help Li Ning Co cut into the field of intelligent running shoes, which has been the direction of Nike's deep ploughing of sports brand boss.

Besides, Millet's ability to stick fans through product design and marketing is also urgently needed by Lining brand.

This move is limited to long-term difficulties facing the Li Ning Co.

Whether consumers will pay for Lining's smart running shoes depends on Lining's reshaping of channels and brands, and the essence of returning to the retail industry is the most critical.

A market analyst who asked not to be named told reporters that Lining's future changes still depend on whether dealers and inventory problems can be solved sooner or later. On the other hand, the use of core competition CBA and core star resources will also play an important role in the future change of Lining.