Li Ningxin'S Round Of Pformation Or Reversal Of "Single Loss"

As one of the most famous sports brands in China,

It has lost three consecutive years, and the amount of loss increased to 781 million yuan last year, compared with 391 million yuan the year before.

In March 19th, Lining came slowly to the center of the stage in Hongkong with pale white hair and sparse hair.

This is the annual performance report of Li Ning Co Ltd (hereinafter referred to as "Li Ning Co"). The former "Prince of gymnastics" is 52 years old this year.

In the face of losses, Lining said in a press conference: "the three year adjustment period has ended. In 2015, we will devote all efforts to the strategic development and daily operation of the company, and lead the company back to the track of profit growth."

Lining's sole loss in China's sports brand

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Beginning to Lining, the five major domestic sports brands have released their own earnings in 2014.

Data show that the total revenue of the five major sports brands is up to 27 billion 200 million, and the total number of stores is 33681. Apart from the loss of Lining, the total profit of the four brands is 2 billion 900 million.

The reporter came to the Lining counter in Jianghan Road yesterday, and found that in 15 minutes or so, a total of 12 people patronized the shop. 3 of them bought goods, most of them tried on board shoes and asked about sportswear.

Among the customers, students account for a relatively large proportion, and the consumption per unit is about 200 yuan.

As China's most famous

Among them, Li Ning Co, founded by Lining, a famous athlete, lost 781 million yuan in 2014, which is the third consecutive year of losses.

In the past few years, another Li Xiaoshuang sporting goods Co., Ltd., founded by world famous gymnast champion Li Xiaoshuang, has disappeared. In recent years, the brand has hardly been seen in the market.

Judging from gross profit margin, the highest gross profit margin of domestic sports brands in 2014 was Anta, which increased by 3.4 percentage points to 45.1% over 2013, followed by Lining 44.6%, XTEP 40.8% and 331 degree 40.9%, PEAK at the bottom and gross margin to 38%.

In fact, Lining's data is bright enough, but why only five of the major domestic sports brands have lost three consecutive years, and the losses in 2014 have doubled in.

Is it true that the sports brand created by athletes is innate in itself?

At a press conference, Lining replied, "2015 is the first year of the company's redevelopment, and the next three years will be a period of breakthroughs in the next stage of development."

Apart from losses, Lining's other figures in the annual report are quite good.

Its 6 billion 730 million yuan revenue ranked second among the five major domestic sports brands, behind Anta 2 billion 200 million, the leading industry third XTEP 1 billion 950 million.

Although it has stabilized the position of the industry's second child, it is also a helpless for Lining, who once was the overlord of the industry.

Why did Lining lose money?

27 years ago, Lining suffered the defeat of Seoul, but he was not knocked down and successfully pformed into the business community.

Now, is Lining able to tide over the difficulties again?

The 1990 Asian Games in Beijing created an opportunity for Lining to be born.

Lining and Li Jingwei, the boss of Jianlibao group of China at that time, jointly planned and decided to "promote Lining brand with Jianlibao and promote Jianlibao with Lining brand".

Subsequently, Lining used his personal influence to win the torch relay right of the Asian Games with 2 million 500 thousand yuan.

The first "Lining" sportswear was selected as the Eleventh Asian Games torch relay designated clothing, the Chinese national team award dress and the designated clothing of Chinese and foreign reporters.

In 2010, Lining was like a duck to water in the Chinese market. The market share was once more than that of Adidas, and even the gap with Nike was not very large.

At that time, Adidas was in a struggle and ranked only fourth in the Chinese market.

but

Reexamine yourself, focus on the previous wholesale business, increase the quantity of orders, pfer to precise supply, and increase the selling rate of distribution.

Adidas purchases through real-time sales data from stores, including the sex of consumers and the products and prices they choose.

And through this form to achieve more accurate supply.

Since 2010, sales in Greater China have increased from 1 billion euro to five years, with a total increase of 80%.

Lining's leading position was not firmly secured.

Take the annual report of Lining as an example: in 2011, the average turnover days of the company were 73 days, 21 days higher than the 52 days of last year, and the stock of Li Ning Co was 1 billion 133 million yuan, up 40.64% from 806 million yuan in 2010.

Lining said: "in the past three years, if we do not invest in the adjustment plan of the company on a large scale, we will not lose money."

In addition to the foreign invasion of Nike and Adidas, Lining launched the initial investment needed for the change plan in July 2012, as well as the earlier clearance of channel stocks to reduce shipments.

In addition, provision for bad debts and other expenses also increased the amount of losses.

"There is no clear positioning, the market is not broken down, and the continuous development of competitors is the reason why Lining finally lost money."

Wu Xianming, director of the multinational research center of Wuhan University, said that Lining's left and right expectations created his current dilemma.

Professor Wang Chao, an economics professor at Wuhan University of Technology, thinks that Adidas has more reasons than Lining. "Accurate supply is actually a reflection of the cost control of enterprises. It shows that the internal use of funds is high and internal management is coherent. It also reflects the success of Adidas since 2008, not only reducing costs, but also improving efficiency."

"Nike has made use of cheap labor in China, and has factories in Southeast Asia. The domestic sports brand wants to spell the cost, but the price of Nike is 2 to 3 times higher than that of Lining. The profit can be used for brand marketing and innovative development. Lining has no energy and money to do that."

Professor Wu's analysis of Lining's competitors.

Holding millet or Li Ningxin's beginning of a round of pformation

In March 16th, Li Ning Co officially announced the strategic cooperation with the millet ecological chain enterprise and the founder of millet bracelet, according to the agreement, the two sides will work together to create a new generation.

And began to explore the health field of big data, which announced that Li Ning Co shifted from traditional sports shoes and clothing brands to intelligent sports.

Lining said at a press conference: "in the past three years, we have invested part of our profits in the company's strategic pformation and new opportunities. It has promoted the development of sports and has also won the great opportunities for the future development of Li Ning Co.

Our ultimate goal is to achieve sustainable profitability, gain greater market space and achieve geometric growth.

With the improvement of living standards in recent years, people pay more attention to sports and fitness, and Lining still has many opportunities.

First of all, Lining has to win the mass market and not compete directly with Nike ADI.

The mass market was once the largest market for Lining. Because of the pformation of the past few years, Lining's brand image was chaotic, and even the last fort was not held up.

In the future, it is not easy to win the mass market.

However, holding millet may be the beginning of a new round of Li Ning Co pformation.

"Wearable smart devices must be the future direction of development, but also a niche market for sports products.

Li Ning Co and millet jointly develop intelligent running shoes, which means Li Ning Co hopes to catch the demand of young consumers in the combination of 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, and 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.

Wang Chao, an economics professor at Wuhan University of Technology, said.

From the inventory data of clothing and retail business, the inventory data of Li Ning Co decreased significantly.

The 2014 annual report showed that Li Ning Co inventory accounted for about 40% of the data compared to the 2012 high, down to 25% in 2014.

In addition, Li Ning Co is trying to promote cooperation with the Internet and will focus on building a digital platform to guide growth in the next three years.

"The impact of domestic sports brands is normal, but in addition to the impact of the economic environment, it is closely related to strategic layout and product innovation."

Zhou Jin, Deputy Secretary General of the clothing trade association of Hubei Province, told the Changjiang Daily reporter that, for example, Nike has integrated the original female product line at the beginning, and has put forward the first entry into the "lifestyle" field; the Adidas China market has set up its first exclusive footwear store in China, and has opened a basketball store in Wuhan. "This innovative form is worth learning by sporting goods companies, but the deeper reason is whether the enterprise has carried out a rational strategic layout and whether it is forward-looking."

"Lining should adopt a close strategy."

Professor Wu Xian Ming put forward another point of view. He believed that Lining should adopt a close strategy and use Nike ADI's huge gap between cost and price difference to divide the market and subdivide consumers. Otherwise, the cost efficiency is not high enough to struggle in the quagmire.

Tashan

Stone

UA brand

How to go beyond ADI

The US sports equipment brand Under Armour was founded in 1996 and is headquartered in Baltimore, Maryland.

The brand mainly develops, produces and sells professional sports pants, shoes and accessories, and the products are very professional and match the sportsmen.

The founder of UA was former Maryland football star Kevin Plank, who, like Lining, pformed athletes into sports brands.

The difference is that Under Armour is a strong executive company, a sports brand with the hope of becoming the next Nike.

In 2014, sales of Under Armour surpassed Adidas as the second largest sports sales brand in the United States.

And Under&l