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    Lining And Millet Cooperation Strategy

    2015/5/19 15:34:00 32

    LiningMilletBrand Strategy

    As China's most famous local sports brand, Li Ning Co reported in 2014 that Li Ning Co's losses in 2014 amounted to 743 million yuan, up to the end of 2014.

    Lining brand

    A total of 4424 franchisees were 11.3% lower than 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.

    While actively controlling sales channels, the loss situation has not improved. After losing 1 billion 979 million yuan and 391 million yuan in 2012 and 2013 respectively, this is a third consecutive year of losses.

    In March 16th, three days before the performance conference, Li Ning Co officially announced the cooperation with millet, announced the strategic cooperation with the Chinese rice technology, to create intelligent running shoes, and explore the health field of big data.

    And Hua Mei technology is affiliated to a road chain belonging to the ecological chain of millet, creating millet bracelet.

    Millet company after the launch of the smart wearer millet bracelet, experienced a period of explosion, but after the sale of 1 million, the user is relatively saturated, entering a slow growth stage.

    Meanwhile, in the first two weeks when Lining announced the cooperation between the two sides, that is to say, in March 2nd, let the small ant technology of Xiaoli company of Xiaomi's eco chain company officially launched the "millet version GoPro" - the small ant movement camera, the basic edition price is 399 yuan, and the travel version of the self timer bar package is priced at 499 yuan, which is now on sale at the official website of Xiaomi, Jingdong and Tmall flagship.

    Of course, after that, "everyone can enjoy the joy of technology." millet camera is always out of stock.

    With the growth of millet Bracelet users and the introduction of millet Sports Camera, Lining's continuous loss has been in a difficult period of pformation.

    On the one hand, public participation in sports has increased rapidly in the past year, and health tracking applications and equipment are becoming more popular, giving both sides a chance to smell.

    However, the cooperation between the two sides does not seem to be very sincere in addition to pursuing the commercial needs.

    There are three main reasons for the cooperation between millet and Lining. First of all, we all know that from the past products of millet, the core competitiveness of the company is based on price level.

    millet

    The best thing is product marketing, especially in the Internet, but it has no outstanding advantages in hardware research and development.

    In the early days, Nike had developed and tried some related intelligent sports shoes, and this project, which is research and development with Lining, is very much like carrying out a technical training with Lining.

    Secondly, after explosive development, the original market of millet bracelet is almost saturated, and it is urgent to open up new users, and Lining's users have a certain coincidence with millet users.

    Finally, millet bracelet, millet camera, intelligent running shoes, the three are related to sports equipment, in tandem for millet intelligent hardware field, to create a perfect sports ecosystem, is a great help.

    And it took two years.

    Reform plan

    Without obvious improvement, Lining, a sports brand whose performance still can not afford to lose money, is really in need of a good way to pform itself.

    All along, Lining as a sports brand, the main consumer group is over 25 years of age, the strategy of nearly two years has failed.

    But Lining still wants to open up young people's market.

    After all, the main force of sports is young people's market.

    The cooperation with millet, on the one hand, hopes to use Millet's brand image to enhance its exposure and reputation in young people.

    On the other hand, in the current predicament, with the aid of smart wearable devices, the brand of traditional sports shoes and clothing brands has officially entered into the relatively intelligent field of intelligent sports. Although this has certain gambling implications, it is a straw for the Li Ning Co who are in deep mire of loss. At the same time, the stock price of Li Ning Co has risen by five days, even on the 19 and 20 days of the month, by 11.6% and 14.1% respectively.

    This also reflects that the outside world has certain expectations for Li Ning Co to break through the current predicament.


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