Lining Should Not Only Go To Inventory But Also Face The Squeeze From External Competitors.

Over the past few years, the Li Ning Co has made drastic reforms.

Since 2012, Li Ning Co has pioneered the pformation from the traditional wholesale mode to the retail oriented rapid response business mode, and launched a "channel revival plan" with a cost of 1 billion 400 million -18 billion, which supports dealers to clean up inventory, buy back and integrate sales channels.

This change led to the loss of Li Ning Co for three years.

Lining pformation retail mode can optimize inventory allocation and operation efficiency, and also increase the proportion of retail revenue.

However, the retail mode exerts pressure on the company's capital expenditure, and the number of retail outlets increases, and the corresponding selling point rental costs, staff costs and so on increase, and terminal logistics costs also increase.

Compared with Anta's dealer mode, the sales cost is about two times that of the Anta's dealer mode, and it is also about two times the average of the industry.

Although Lining has made great efforts to control costs in recent years, the reduction of sales costs is more difficult.

In fact, Lining has also stressed the importance of product, channel and operational capability in the recent earnings briefing, which is the key to turning losses into profits.

In the face of external competition, Zhu Qinghua believes that Lining's overall advantage is not obvious, and its competitiveness is relatively weak.

"With Nike,

In contrast, Lining's advantage is that he knows more about the Chinese market and the price is relatively low. The main disadvantage is that the brand influence is relatively weak, and the R & D capability, quality and innovation ability of the products are not strong.

Zhu Qinghua said, "compared with XTEP and PEAK, the advantage of Lining is superior in quality and design. The main disadvantage is that the price is relatively high."

Although Li Ning Co is facing the challenge of continuous profitability, the helm of Lining did not stop because of difficulties, but chose to expand the layout development mode.

A researcher at CIC light industry

It seems that during the 2013-2014 years of Lining, the number of Customs stores was as high as more than 2300. When the market was warming up, Lining began to expand its stores.

Zhu Qinghua said that the current sports industry is well received by the policy.

With the rapid development of sports products, sports products will become an important subdivision of sports industry, and market demand will also expand.

Lining's expansion of stores during this period is conducive to the rapid development of sports industry dividends.

"While Lining is expanding the store, he needs to adjust the brand positioning, products and channels in time, otherwise it will be difficult to improve the attractiveness of consumers."

Zhu Qinghua believes that sports products enterprises need to improve their R & D capability and enhance their creativity. They will win the market with products of high technology and diversification, and at the same time pay attention to the needs of consumers and upgrade products according to the needs of consumers.

In addition, actively develop online channels, so that online channels and offline channels to form a good cooperation, improve marketing capabilities.

"The more advantageous enterprises in the future will be enterprises with strong product, channel and operational competitiveness, which can meet the individual needs of consumers."

Zhu Qinghua said.

Min Guangya believes that the most important point for enterprises to turn losses into win is the sale of the shops themselves rather than the expansion of the shop scale.

Only by improving the profitability of the shops can we fundamentally reverse this loss situation. However, there is no logical relationship with the number of shops.

There is a premise that a large scale shop opens up the cost to raise the profit level. That is to say, every new shop must be profitable, otherwise the profitable shop can not only consume a lot of resources, but also expand the company's deficit situation as a whole.