What Is It That Gymnastic Prince Lining Can'T Do?

At the age of 26, he announced his retirement.

When Lining retired, he did not know where to go. Once he was at a loss. At this time, he appeared in business. This man was Li Jingwei, chairman of Jianlibao. Li Jingwei liked Lining's simplicity and ingenuity. Lining admired Li Jingwei.

Eye and the rich experience of operating enterprises, two Li soon became a friend of the past.

At first Lining wanted to run a gymnastics school, and Li Jingwei suggested that he should rely on the economy to develop sports. Lining, accompanied by Li Jingwei, went out to lobby for investment.

Soon, Singapore KINGE Industrial Co., Ltd. went to Sanshui site inspection, the two sides signed a contract.

The Sino Singapore joint venture Jianlibao sportswear company was established, mainly engaged in the production and operation of Lining brand sportswear. Lining served as general manager.

The first shot of Lining, who just took office, was the sponsorship of the Asian Games in 1990. At that time, he lobbied with the National Sports Committee in the capacity of sports celebrities. The name of the 3 million US dollar was eventually won by 2 million 500 thousand yuan. Finally, 2 billion 500 million Chinese and foreign audiences knew Lining's card.

After a small test, Lining gained more trust and favor from Li Jingwei. In 1991, he invested 16 million in Jianlibao, and the Guangdong Lining sporting goods company was formally established. Lining was responsible for the operation of Lining brand sportswear and sports shoes.

At the end of 1994, Lining carried out the shareholding system reform of the company, separated the Guangdong Lining sporting goods company from Jianlibao group, and 16 million of Jianlibao's investment, and Lining paid three times in cash.

By the end of 1995, Lining group was established and chairman and general manager of Lining Pro Group.

From family business to modern group

We all know the drawbacks of family businesses. Everyone has great rights. In the end, they do not know who to listen to. Finally, the company is killed.

When the Li Ning Co was first founded, its founding team was Lining and several retired teammates, as well as Lining's family members such as brother, sister-in-law, cousin, etc. Lining was a full family business at that time. But Lining's family business was not a problem of power disputes, but rather a lack of professionalism.

Due to the lack of professional talents, Lining's first shoes were produced by OEM. After 700 thousand, he found that all of them were unqualified. Lining, who was so heartache, immediately destroyed the unqualified products. He began to consciously invite professional talents to join him. He then invited the top ten companies from the famous sportswear production company to Chen Yihong and made him director of production. Finally Chen Yihong went up to the position of general manager.

The accession of Chen Yihong and a group of professionals has created the first glories of Li Ning Co, and its turnover has increased by 100% annually.

Lining said: "when I am an athlete, my efforts determine whether or not everyone's wishes are realized. When we are businessmen, we need everyone's efforts to fulfill my dream."

Difficult way to go public

At the end of the 90s, there was a popular sports style and a pair of sneakers.

You can see similar figures in the streets.

The annual sales volume of Lining sports equipment complying with the market trend is loiter, and in 1996 it set a record of 670 million.

Unfortunately, the Asian financial crisis hit in 1997, and the joy of growth stopped abruptly.

Lining's products began to sell, and the market position declined year by year. The plan for listing in Hongkong was temporarily shelved by this storm.

It was not until the third general manager Zhang Zhiyong carried out a series of reforms in 2001 that his turnover continued to rise. He finally went public in June 28, 2004 in the main board market of Hongkong in June 28, 2004, and issued 247 million shares publicly. In July 9th, 36 million 976 thousand new shares were issued, while Lining and his family owned assets of more than HK $1 billion.

"Let's start all over again," Lining often likes to say.

Every gold medal starts from scratch, and from athletes to businessmen, it is a new start for Lining.

It is with a return to zero mentality that Lining can go beyond himself and surpass the past.

3 years losing 3 billion 100 million

Lining once again came out of the mountains, turning losses into profits.

Since the group listed, Lining delegated power to professional managers, gradually fade out of the company management, from the beginning of the establishment, although the company bumps all the way, but the revenue is still growing steadily, the turnover in 2010 climbed to 9 billion 478 million yuan.

What I did not expect was that from 2010, the performance began to land in a straight line like a roller coaster. In the second half of 2012, the Li Ning Co lost 2 billion yuan and lost 743 million yuan in 2014.

The problems encountered by Li Ning Co are:

1. the impact of foreign giants, clothing channels high inventory rate

2. communication efficiency is low, internal bureaucracy is serious.

3. Chen Yihong, the chief executive, broke through many twists and turns. Zhang Zhiyong, the second CEO, went gloomy in 2012. He once managed to lead Daphne out of the third CEO Jin Zhenjun in the mire.

4. with the rise of the post-90s consumer group and the enormous challenge from the market, the rapid rise of the sports industry in Jinjiang has also made Lining feel the pressure.

Lining can only save Lining himself.

1., micro-blog sells Meng, and socialized marketing.

A reporter once asked Lining why he didn't open micro-blog. Lining's answer was: "I'm neither good at it nor interested."

Obviously, he did not keep pace with the mobile Internet, and suddenly discovered that sina micro-blog was launched in 2015.

Today, the father has accumulated about 2000000 fans, but also used millet mobile phone, from camera to sell Meng, and NBA basketball star Wade to discuss the design details of basketball products, met with Jackie Chan in Beijing to release suspense, and used Lining's whole sports equipment to carry out the "full arm" of Pan Shiyi. Almost every few days, Lining himself would make great surprise on micro-blog.

A kind of

The prince of gymnastics has a huge deficit of 3 billion 100 million.

2. administrative expenses cut half, electricity supplier force

Another major reason for the Li Ning Co's turning around is that the administrative expenses will be cut by half, and the management costs and marketing costs will be greatly reduced. Lining hopes to increase the operational efficiency of the group and reduce unnecessary expenses. He himself used the celebrity effect to voice the brand and saved a lot of money for the company.

In 2015, Lining's electricity supplier's net profit after tax was over 100 million, and maintained a very substantial profit margin and turnover. The power in the field of electricity supplier is another reason for turning losses into profits.

3. joint millet pformation

The strategic cooperation between Li Ning Co and millet ecological chain enterprise and the founder of millet bracelet is based on the agreement. The two sides will work together to build a new generation of intelligent running shoes and begin to explore the health field of big data. This announcement has declared Li Ning Co from the traditional sports shoes and clothing brand to the field of intelligent sports.

Since 2012, it has lost 3 years, with a total loss of 3 billion 100 million yuan.

Finally, in March 17, 2015, it officially announced the news of turning losses into gain. This is the first time that Lining has made a profit after losing three consecutive years.

Lining's annual income in 2015 was 7 billion 89 million yuan, an increase of 17% compared with 2014, and the net profit of the company was 14 million yuan, while the previous year's loss was 781 million yuan.