Lining: How To Identify Breakout And Investment In The Channel Of E-Commerce?

In recent years

The industry has brought a huge impact on the sale of physical stores.

There are a lot of closes every year.

At one time, with the mode of agents, the sports brands that had made a lot of money were suffering from channel disease.

The hierarchical distribution system leads to low efficiency of information communication, and it is difficult for brands to obtain effective data from terminal consumers and track accurate inventories, so that they fall into crisis.

Several major sports brands have closed down the stores.

But in 2014, the earnings reports of several major sports brands in China showed signs of overall recovery.

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Sports brands such as Anta, PEAK and so on are still constantly adjusting under the strong impact of the electricity supplier, making different strategies to get out of the low level of inventory and closing stores.

Reporter: last year, Li Ning Co occupied 5% of the channel on the electricity supplier, that is to say, its space is still very large. How do you judge Lining's breakout and investment in the channel of e-commerce?

Lining: in fact, in the electricity supplier, we Lining is almost one of the best. We should say that we are the top two or three, but in terms of the consumption of sports goods, the online space is still huge, but the value under the line can not be replaced. In the past two or three years of adjustment, we actually have more than 3000 stores that have been shut down and turned off, and optimized, and in fact, we have lost some opportunities for offline channels. So in the next one or two years, we are going to find our original market and find our original channel.

In this process, offline development should be developed at the same time, and then the future development of online will be more interactive. That is to say, it is not cheap simply, or it will be done at a discount. We hope to do more interactive business. Apart from the interactive interaction between smart running shoes and millet, the online sales promotion is beyond this channel. Then we have basketball, badminton, sports life products.

In fact, the products we sell now are also very good online sales. The advantage of online is that it creates the same feeling interaction in different regions. This is a great help to us. So in the next digital business, online sales will become a highlight of our business, but it is not isolated, it will interact with our offline businesses.

Reporter: will this downward trend of traditional channels continue?

Lining: No, we will rediscover the market that we should not shrink in the past. So we will redevelop our offline channels with products and different groups of products and different customers, so our offline channels will expand again in the next one or two years.

Reporter: maybe there are more outlets in this store?

Lining: not necessarily, according to different regions of the market to decide, this is more than just a direct camp or distributors or distributors to join. It is important to connect the online and offline businesses on the basis of the characteristics and efficiency of each channel. Some products are sold online and offline, some products are pushed offline, online products are sold, some products are online and offline synchronization, for example, I just talked about this intelligence, maybe we need more through a channel on the line to complete.

It is more efficient, so we will become an interactive thing based on online and offline. For example, if we have some basketball products or running shoes, it is still buying offline, but there are a lot of special bodies and group buying, especially the need for structure and technology.

But on the whole, as you just said, we still have a lot of room to sell on cable, and the target of 25% to 35% in the next three years.

Traditional enterprises often encounter conflict between online and offline businesses, especially the conflict between channel and product price system. Many traditional business enterprises rush into the business, resulting in serious losses, channel conflicts and intensification of contradictions.

This is also the reason why many traditional brand enterprises are still hesitant.

Reporter: now there is a common problem in the industry. How can you let dealers have enough confidence to say that the electricity supplier will not replace their profit? Their market space will enable the two parties to jointly develop sustainably and how to balance this relationship.

Lining: Generally speaking, it must be done in real time to speak clearly, that is to say, your product line, your region, your actual trading interests, how do you cooperate with each other? Product line is very important. How can different product lines get the best communication and efficiency through different channels? This is the most important thing.

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Reporter: in other words, your confidence in the investment of electric business will continue.

In September 2014, the State Council put forward the examination and approval of commercial and mass sports competitions.

This measure is regarded as an important signal for deepening the reform of sports industry and decentralization.

However, the scale of China's sports industry is still small. In 2013, the added value of China's sports industry was 313 billion 600 million yuan, accounting for 0 of GDP.

6%, only for 1/4 in the US.

However, it is predicted that the total scale of China's sports industry will reach 5 trillion yuan in 2025.

Under the background of domestic economic restructuring and upgrading of consumption, the promotion of sports industry to the economy is becoming increasingly important.

Reporter: we know that China's sports industry is developing very fast now, and the prospect is very good. In the next ten years, how big is the Chinese sports industry?

Lining: what do you mean by the sports industry? Because the sports industry is very large. Sporting goods are only accessories of the sports industry. The size of the sports industry will ultimately depend on the consumption power of all the cities in China. I think if the government can have more policies to stimulate consumption and promote consumption, it will be of great help to the development of the industry.

For example, if sports can enter the school, if I can not enter the school, if I can not enter the school, I do not think that physical education is part of education, and it is very difficult to enter the school. I do not agree with this idea. It is very difficult for students to spend time doing homework outside primary school, middle school and university. If there is no such group, it is a great restriction for China's sports consumption. In fact, the foundation of sports consumption comes from teenagers. The reason why teenagers can produce such a kind of consumption is that people will agree with family, society and national government, and agree that sports is part of education, so there will be positive rather than wasting time, not injury.

I often give this example to them. Sports can be hurt, but the help that sports bring to you, and the process of getting hurt, has become strong. This is the value of sports. This value can not be approved by Chinese society and family. It will affect the development of this industry.

In the future, the total demand of Chinese sports will grow. Therefore, this kind of growth will certainly bring us opportunities. But when and when we need to do it, we need to do it.

Reporter: do you think the core nature of competitive sports and mass sports is the same?

Lining: if we say that the essence of sports is the same, because every child takes part in a small competition like school or between clubs. The reward he gets is the same as that of a professional adult who wins the championship in the competition. Even the child not only drives him, but also brings encouragement and touch to the whole family, which is also irreplaceable and effective.

If Chinese can understand this kind of sports competition, it is the core value of sports. It is necessary to have a new understanding of its rules, its organization and its so-called ranking.

Yao Ming had Shanghai men's basketball team, Wang Jianlin bought Atletico Madrid, and Xu Jiayin used Hengda's success to attract Ma Yun to join.

Owning a professional sports team seems increasingly fashionable in the business world.

Lining, who has long been known for sponsoring professional leagues, is also an athlete.

Reporter: do you think that now Xu Jiayin, or some real estate bosses or business chiefs, they invested huge sums of money in naming their own teams, football teams or basketball teams? Do you think what they are pursuing is different from what you are pursuing?

Lining: I can not evaluate this, because I still do not know what the purpose of their real investment is, but from their input, I think it is helpful for the development of China's sports industry. In fact, I am more concerned about the socialization of sports and the commercialization of sports. If the government's resources, government policies and social resources, social capabilities, and family and personal resources are organically combined, I think this is the most important.

And as you just brought to the team, to the team this step, in fact, has become a professional league, professional sports, it is different from our simple public or basic community sports, it may bring more consumption, bring entertainment, bring professional development, that is, these skills need platform, this platform you want to have a team.

First of all, there is a professional league platform, because no professional league exists, the team is meaningless, the professional league is how to structure, its structure will affect the whole, because it is a company or an industry, it involves the structure of the company, the input of the industry, there must be the relationship between input and output, there must be cost, there must be income, if these things are not clear if done, it is very difficult to sustainable, because it is not a simple thing to rely on the government can accomplish.