Why Did Lining Get Into The Difficult Position Of Business In The Way Of Pformation And Pformation?

Internationally renowned

The entry and the rise of the local "grassroots" brand.

"Facing increasingly fierce market competition,

Share is gradually eroded, and the malpractice of company management is gradually appearing.

In order to get back to the top of his career, "Lining" embarked on the road of pformation and pformation.

However, a series of reform measures have not received the desired effect, but have caused the enterprises to fall into the predicament of operation.

Many people can't help sighing: what's wrong with Lining?

First, the strategy is uncertain, and the brand positioning is vague.

An enterprise is like a big tree. Once it has taken root, it will do its best to absorb nutrients and grow healthily.

But where is "Lining" and "take root"? Where is the "positioning"? This kind of problem has plagued the enterprise for many years.

I remember in an interview many years ago, when a reporter asked Lining whether the brand positioning of the company was fashion or sports (Professional), he just smiled and replied, "sports is the biggest fashion."

Such an answer is absolutely ingenious in the press spokesman, but in a strategists' view, such an answer is really dangerous. Mr. Lining's answer has not shown to the public whether Li Ning Co is positioned in sports or in fashion.

Between sports (Professional) and fashion, Lining's brand positioning is always blurred, and has been wandering between fashion and profession.

Such ambiguous positioning makes Lining not strong in professional field and slightly less fashionable in fashion.

In the survey of Lining products, it was found that:

If a pair of Nike shoes priced at 800 yuan and a pair of Li Ningxie priced at 700 yuan are placed in front of consumers, consumers will choose Nike.

If a pair of Li Ningxie with a price tag of 330 yuan and a pair of Anta shoes priced at 250 yuan are placed in front of consumers, consumers will choose Anta.

The survey results show the embarrassment of "Lining" positioning from the side.

In contrast, Nike positioning "fashion, cool", Anta positioning "low price, civilians", both have clear brand positioning, in different brand positioning call, two brands have attracted loyal brand advocates.

Two, ignoring customer needs, brand remolding mistakes.

On the one hand, after the Beijing Olympic Games in 2008, Lining abandoned the safety strategy of taking the road of high performance price ratio, trying to establish a high-end brand image and greatly improve the product price.

As a result, with the price catching up with those foreign brands, the old customers who are older and pay attention to cost performance have turned to other cheap domestic brands.

On the other hand, in order to get rid of the followers' image of "China Nike", in 2010, "Lining" re targeted the target consumers - after 90, they made great efforts to create "post-90s Lining".

And change the slogan from "anything is possible" to "let change happen".

The next thing gave Lining a head start.

Orders for Lining's clothing and footwear products fell by more than 7% and 8% respectively, and the total amount of orders declined by 6% over the same period.

After the birth of "new Lining", the pformation of the company did not achieve the desired effect, but the company's management was in trouble.

First of all, due to the impact of consumers' past impression on Lining products and the gradual aging of enterprise product design, the post-90s consumers are not buying the "new Lining" product.

The post-90s consumers are fresh in character, refuse to copy, value commodity quality and brand value, while "Lining" does not keep pace with the times to remold their brand in changing the product logo and raising the product price, which leads to the indepth of the group after 90.

Another important reason why "Lining" is not liked by the post-90s is to ignore the brand connotations that satisfy the needs of customers.

What is the "Lining" exactly? What is the brand concept it conveys? What is the difference between it and Nike, Adidas and other international brands? What is the difference between it and the second tier brands represented by the Jinjiang Gang? These problems have not been well explained, and there is no way to give a very effective emotional connection to the post-90s.

In addition, "Lining" was abandoned by former loyal customers.

These old customers can not accept the high price of Lining products, and they can not accept the overthrow of the original brand image of "champion Lining".

In the end, Lining was short in the campaign of brand remolding and was grabbed by competitors by the competition.

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Three, channel management confusion, inventory crisis outbreak

For the "light assets" enterprises such as Lining, terminal sales capability is the key to the development of enterprises.

For a long time, Lining has adopted the market layout mode of "Direct stores and franchised stores". The advantage of this mode is to quickly seize the market by means of the strength of dealers, and to seize competitors. The disadvantage lies in that the customers directly facing are suppliers at all levels instead of terminal consumers, thus lacking the sensitivity to market changes and the insight of consumers' needs, resulting in the slow reaction of the market and the disconnection between brand image and consumer cognition.

And most dealers are single point business, many stores can not timely feedback to headquarters.

The 2010 bid change further sharpened Li Ning Co's inventory crisis.

On the eve of the launch of the new LOGO, the "Lining" order meeting has just been completed, and all the suppliers are still producing the old standard products according to the existing requirements.

This is doomed that these products have just been produced and become the fate of inventory directly.

The huge inventory of inventory is urgently needed, leading to the new product's ordering meeting. Dealers dare not bet in the face of Lining's bid change. In 2011, the Q2 order meeting storm broke out.

Li Ning Co has always believed in "light assets", which is out of touch with dealers in a deeper sense and lacks interaction with distributors in daily management.

It is necessary to establish and maintain coexistence relationship with distributors, such as "Lining", especially those relying on terminal sales.

The "Lining" chaotic channel management has not only prolonged inventory turnover, but also killed dealers' confidence.

Four, organizational structure is bloated, decision-making is inefficient.

After more than 20 years of development, the organizational structure of "Lining" is no longer flat.

Take the marketing department as an example. In the past, the chief marketing officer was subordinate to the brand communication director, and there were also store design directors, display directors and visual directors. Besides, there were also titles such as interactive marketing director, outdoor event marketing director and so on.

Such a huge staffing is not only very complicated in management, but also exerts greater pressure on the operation of the overall structure.

For a long time, the sales department and product department of Li Ning Co lack coordination mechanism. Many times they stand on their own standpoints and think that they really dominate the market. The former often judges whether the product is selling well according to the sales experience, and the latter thinks that the good products they designed are not pushed to the market in time.

In addition, the human and operating costs of "Lining" are also rising with the increase of organizational level.

Although in recent years, "Lining" has cut down personnel expenses through layoffs, it has increased the communication efficiency by reducing the rank of posts. However, if we really want to cure the cost completely, we need to change from the source of the overall organizational structure of the company.

Moreover, the bloated organizational structure is gradually eroding the fighting spirit of employees, and the phenomenon of internal overstaffing and irresponsibility is constantly emerging.

Five, top management turnover is frequent, and internal friction remains far-reaching.

In December 2006, Le Shuyu, Lining's brand manager, left.

In May 2011, Lining, chief operating officer of Guo Jianxin, chief market official Shiwei and director of e-commerce, Lin Li, left one after another.

In June 2011, Wu Xianyong, general manager of Lotto, also went away gloomy.

In July 2012, CEO Lining, chief executive of the "top management" of Zhang Zhiyong, announced his departure.

After a series of separation storms, "Lining" had to ask Mr. Lining, the founder, to take the lead.

Scrutinize the reasons for the frequent turnover of Lining executives is closely related to Zhang Zhiyong's management style.

On the surface, Zhang Zhiyong is trying to advocate a free and equal management culture internally, but this may be just a representation.

Zhang Zhiyong's management style can be seen from one or two CFO Lining's resignation before Chen Weicheng.

Before and after 2008, Chen Weicheng summoned the core management of Li Ning Co to ask questions on a core financial issue in accordance with the responsibilities and powers of CFO.

Before proceeding, Chen Weicheng did not tell Zhang Zhiyong himself. Zhang Zhiyong was very angry after learning about it, and sent a very loud mail to Chen Weicheng, which eventually led Chen Weicheng to "hang on his boots".

In addition, the "Lining" internal staff will most "loyal" to Zhang Zhiyong's idea of human resources department, dubbed "East factory", it dominates the internal promotion and external airborne management, manages all people's performance, assessment and promotion, including work summary, workload, overtime record and many other information.

For many employees, the rise or fall of positions depends on the closeness of the relationship with the Minister of human resources, and the actual performance is only one aspect.

In the power game, this kind of management internal friction is like a group of dense termites attacking the branches of Lining's disease, until they become rotten wood one day.

Six, deviate from core strengths and blind international expansion.

Internationalization is the main strategy of "Lining" in recent years. From the signing of the Spanish Olympic Committee, a series of initiatives such as sponsoring Spain and Argentina basketball teams have made people seem to see the shadow of Nike and Adidas.

But the internationalization of "Lining" did not bring substantial benefits to the company.

In the end, "Lining" not only did not win a cup of tea in the world, but also gradually divided his own traditional position.

Nowadays, "Lining" should resist the containment of "foreign brands" such as Adidas and face the pursuit of local brands such as Anta. In such a "dangerous" environment, what Lining needs to do is to foster strengths and circumvent weaknesses, use her own local characteristics, highlight the sense of preoccupation in peace and danger, and give play to the advantages of domestic sports brand benchmarks and forerunners, so as to make an amoeba which can only be changed according to the environment.

Seven, dilute the mainstream culture, airborne troops "acclimatized"

It is Lining's idea to hire a professional manager from a multinational company with a high salary.

As a founder, he has been committed to "de familial", trying to get rid of his influence on the company and brand, but this practice has been frustrated repeatedly.

Those foreign professional managers seem to be out of tune with Lining's culture and values.

The models and reforms brought by Nike and Adidas were not recognized by "Lining".

This does not agree with the gradual expansion of the sharp reduction in product orders in 2010.

Because a series of creative products with oriental elements have been rejected one after another, some dissatisfied designers have left.

The exaggerated products produced by designers from Hong Kong and Taiwan are also challenged by the "Lining" local designers.

After repeated conflicts, contradictions can only be resolved by the level of jobs.

At that time, Zhang Zhiyong, who was a Li Ning Co CEO, did not hesitate to push forward the brand remolding action in a radical and internationalized way within the Li Ning Co. He introduced a large number of professional managers from Hong Kong and Taiwan from multinational companies, and the original product design style completely reversed.

These too many external managers who have been introduced too quickly have created chaos in Lining's entrepreneurial culture and are hard to assimilate these external influences. Gradually, the original mainstream culture of Li Ning Co has become fragmented in the confrontation with external culture.