Lining: Revival And Expansion Of Channels
Facing the market environment full of so many variables, Lining's pace of pformation and upgrading has never stopped.
Only with the change of business environment, can we make timely and proper response to changes in the competitive environment in order to promote its continuous growth and maturity.
However, every change of Lining seems to take risks in twists and turns.
Since 2012, Lining has been losing money for three consecutive years. It is precisely in these three years that Lining has made significant adjustments and pformation.
How to break through the original
Wholesale business
Mode is the key to carry out differentiated operation under the homogenized competitive environment.
Lining began to build up a new platform and business mode. The core of which is the channel revival plan, which cost up to 1 billion 400 million yuan to 1 billion 800 million yuan. It hopes to pform the traditional wholesale business mode and turn it into a retail business mode.
Especially in the past two years, Li Ning Co has fully implemented the retail business mode, established a comprehensive terminal to terminal retail business platform, and connected four key modules from the company, Affiliated Companies and channel level, including demand forecast, purchase plan, supply chain collaboration and retail operation.
Through demand analysis and formulation
Purchase plan
To improve inventory efficiency, reduce cash conversion cycle, and make real-time arrangements for actual sales of retail stores.
At the same time, the process also ensures that adequate inventory is allocated at the right time and at the right place to increase the same store sales.
But there are also many people in the industry that Lining's progress in the three year channel revival plan is not complete. The retail mode has exerted pressure on the company's capital expenditure, the number of retail outlets has increased, the corresponding selling point rental costs,
Staff costs
And then increase, terminal logistics costs also increased.
As of March 31, 2016, the number of sales outlets of Lining brand in China totaled 6106, representing a net decrease of 27 compared with the end of last year.
But the pace of Lining's continued expansion is far faster than the current adjustment.
For Lining's practice, the industry has also raised doubts. In the face of internal and external troubles, Lining's best practice should be to improve the storefront's operation and profitability, rather than regain the expansion, and ultimately lead to big but not strong.
It is worth mentioning that in view of the fact that there is a certain degree of coincidence between Lining and millet users, it is always Lining's goal to gather those young people who have been born with fever.
Last May, Lining announced a strategic agreement with millet ecological chain enterprise and millet Bracelet founder, to jointly develop a new generation of smart running shoes and explore the health field of big data.
Lining is accustomed to taking the initiative to attack, which is the vitality of Lining's brand.
The complex market environment is full of uncertainty. Just like a sports match, you never know the result until the last second.
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