Lining Has Just Turned Around And Anta Has Broken Tens Of Billions. What Happened In The Middle?

In 2015,

The report cards of the major listed companies are two meaningful.

Lining, an old firm, suffered losses for three consecutive years and lost its profits in 2015 (operating income of 7 billion 89 million yuan), even though the net profit was only 14 million 300 thousand yuan.

One is the back - hair Anta, with the operating income of 11 billion 126 million yuan in 2015 and the net profit of 5 billion 185 million yuan. It is the first garment enterprise in the sporting goods industry to break down a billion revenue.

After the founder ignited the Olympic torch platform in the bird's nest, Lining's company was in its heyday.

By 2010, Lining's operating income reached 9 billion 479 million yuan, which is approaching the billion mark.

At that time, Anta's revenue was only 7 billion 408 million yuan.

The pition took place very quickly, and Anta's revenue surpassed Lining for the first time in the following year.

Before that, few people thought Anta could challenge Lining's position.

Lining shoulders the heavy responsibility of fighting against Nike and Adidas, is the pride of national enterprises, and is so good at marketing.

However, Lining may be on the road of marketing.

Channel first

After 2008, Lining pushed the channel down, and some small towns also had specialty stores.

Channel sink is not impossible, the core city stores should be kept.

The reality is that Lining has closed many stores in the second tier cities. The growth of stores is from three or four line cities or even five line cities.

In the process, management relaxed the demand for stores, and franchisees could apply to open stores if they had enough money.

A large number of shops open, the image is not well controlled, shaken the foundation of the brand.

For clothing brands, stores are one of the important media, consumers are accustomed to feel the brand value from stores.

Store image is not good, brand image in customer's mind is also not good.

At this time, more advertisements will be useless.

People say that Nike sports marketing is well done, careful study, Nike has no bad stores, this is a big premise and foundation.

Anta's approach is different. No matter a second tier city or a three or four tier city, the quality of the shops is good.

For a very important franchisee, Anta has chosen to join the franchisee to open a store, and some stores even account for more than 51% of the shares, equivalent to joining the franchisee.

Running a store is not just a matter of franchisee's own business. It controls the image of a big store, and the brand has a foundation.

Insiders from the clothing industry say that the core of the brand is the store, and the store is not good enough.

In addition to the product, the rest is the store.

The quality of stores is not good, and the company has no future.

As Anta said in its annual report, "the most effective way to manage retail channels is to regard themselves as retail companies, the sustainable development of distribution networks, and the quality of shops (location, size, store decoration, etc.) is more important than the number of stores."

Over the past year, Anta has continued to restructure and optimize smaller and less profitable stores, offering larger and more attractive stores in good lots.

By the end of 2015, the number of Anta stores was 7031, compared with 7622 in 2014, which has reduced by nearly 600.

Brand myth

Products that are directly oriented to consumers, no matter how red hot they are, may be caught in the quagmire of brand aging.

In 2010, an important reason why Lining changed his bid was to believe that over 20 of the company was founded in the past 50% years, and the loyal customers were older. In order to attract more young consumers and enhance the influence of the brand in this group, it is imperative to change the label.

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There is no way to say "let change happen" really bad, but when Lining offered the concept of "post-90s Lining", it can only be said that the company has already been messed up.

No one wants to be labelled, or such an intergenerational label.

Really after 90 years, long been the international big card education, see this concept, ha ha laughed and left.

It turned out that those 60, 70 or even 80 consumers felt abandoned.

Last year, Lining announced the slogan of "everything is possible" and gave up the slogan "let change happen" for 5 years.

Such a toss, for a sports brand, the price is too great.

In the era of mobile Internet and social media, enterprises must accept several facts:

First, the brand is the consumer, not the owner.

Second, we should manage users in a dynamic and coordinated way instead of trying to control them.

Third, there is nothing more terrible than CEO.

Named after the founders

If you can't keep interacting with consumers as time goes by, the founders will become a burden.

Lining himself began to make changes after he returned to the company in early 2015. He brushed micro-blog, took part in the marathon race, and appeared in public.

For a low-key and reserved person, these changes are commendable.

Under his leadership, the company turned a profit into a profit in one year, and it also showed the strength of aftereffect.

No wonder Anta CEO Ding Shizhong sighed that if Anta experienced such a toss, she could not imagine what the result would be.

But what needs to be pointed out is that Lining may be lost in the process of climbing up the value chain.

In Anta's brand portfolio, there are "FILA" for high-end market, Anta and NBA for mass market, and no brand for low-end market. Anta does not aim at low-end market.

"FILA" (Anta purchased the trademark right to use in China from BELLE international in 2009) and "NBA" (Anta became NBA China's official market partner in 2014) has become a well known high-end brand under Anta's operation, while Lining's Lotto and AI high brand are less aware of the public.

In fact, one of Lining's goals is to continue to expand the low-cost sports and leisure market and attract young fashions.

We must win the law.

Expand the low price sports and leisure market, this is the rise of XTEP, 361, PEAK and other brands.

It seems that there is no opportunity to catch up with Lining for many years.

Now, after a long race, Anta ran to the front.

For sports brand, a professional and high-end image is the core of value.

Only by constantly consolidating this core and extending to the leisure fitness field can we take the most important part. This is the real reason why sports brands strongly sponsor the mainstream sports such as football, basketball and track and field.

This year is particularly important for Lining. Anta is the incumbent. Lining is the champion. Will the gymnastic prince turn the match again?