Lining Will Target Women's Sports Market

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Willy Brkhart, President of international business, formally signed the contract. It is reported that the contract paction is about 100 million yuan.

1 months ago, Li Ning Co announced the exclusive operation of Danskin in Macao and Mainland China.

However, at present, Lining's official website has not seen the sale of Danskin related clothing.

Danskin, an old American brand under the name of acennis

The old woman in the United States

As early as 1882, it was founded in New York, USA.

At the very beginning, they made dance costumes, and later came out from yoga dances and other categories.

In 2007, management company Ai Connie J (Iconix) put the Danskin brand under the bag, and Danskin also opened the road to expand from the US market to Japan and Europe.

In the US women's tights consumption list, the Danskin brand has long been the top.

According to data reported, Danskin global revenues in 2015 were about $1 billion.

At present, the company has more than 30 clothing and home brands, and its operating brand is often authorized by way of operation.

Its latest appearance in China was in June, when it sold the trademark rights and business rights of UMBRO (Umbro) Greater China (including Mainland China, Hongkong, Macao and Taiwan) to the US and the United States, which reached nearly 400 million yuan.

From 1990 to 2010, Li Ning Co has been occupying the first place of the domestic sports brand.

2010 is a watershed. On the one hand, the turnover of Li Ning Co has been as high as 9 billion 478 million. On the other hand, the focus of marketing is on the users who are becoming the main consumers of consumption. It will change the past LOGO, and the slogan is from "everything is possible" to "let change happen".

However, the expected change did not come, but on the contrary, many problems such as the surge of stock goods were ushered in. At the same time, in order to deal with inventory, a large number of "closing shop tides" and "discount tides" had also damaged the brand image of Li Ning Co.

Between 2010 and 2012, Li Ning Co's sales fell and its share price plummeted, and its share price dropped to HK $3.88 from HK $9.74 per share in the short span of more than 4 months from March 15, 2012 to July 26th.

Subsequently, Li Ning Co CEO Zhang Zhiyong resigned. Kim Chun Jun announced that he took over the company in July 2012. After a series of reforms to the company, the company's losses in 2013 dropped to 392 million yuan.

In the first half of 2014, the deficit expanded again, reaching as high as 586 million yuan.

By the end of July, 14 stores in July were reduced from 8255 to 5671. Compared with the domestic sports brands such as Anta, PEAK and 31st degree, Anta sports net profit was 803 million yuan, PEAK and 31st degree respectively had 34.6% and 28.3% year-on-year growth rates, with net profits of 121 million yuan and 263 million yuan respectively.

Facts have proved that the pformation was not recognized by the market, and Anta sports also surpassed Lining in revenue several times since 2012.

After November 2014, Lining took charge of the company he founded and began to use his celebrity's IP to try to save Li Ning Co from declining.

Lining opened his personal micro-blog account and frequently brushed his face on public occasions.

At present, Lining's micro-blog account has more than 2 million 70 thousand fans, compared to the other two official micro-blog accounts: Lining run and Lining official micro-blog, the number of fans is about 740 thousand and 580 thousand respectively.

In this way, Lining is likely to become a huge trump card to save Li Ning Co from fire and water.

In August 8, 2015, Lining, who founded 25th anniversary, announced that the strategic direction will be changed from sports equipment provider to "Internet + sports life experience" provider, and the slogan of "everything is possible" will be changed again.

Lining's series of initiatives paid off.

Li Ning Co's earnings report showed that as of December 31, 2015, the company's revenue reached 7 billion 89 million yuan, an increase of 17.2% over 2014, and finally reversed the 3 consecutive year of losses. Meanwhile, retail, wholesale and e-commerce revenues recorded double-digit growth.

From the perspective of stock prices, the stock price of Li Ning Co has been showing an upward trend since mid June.

In October, its market value basically stabilized at HK $10 billion, and its market value was HK $10 billion 900 million at the time of publication.

Women's sports market

After turning the tide, Lining looked at the female sports market.

According to the report released by Feng Rui capital, how does the sports apparel brand achieve brand upgrading? There are several noteworthy points for the enterprises that do sports apparel: one is that the clothing market in China has reached 2 trillion trillion scale in 2015. Compared with the industries that are in the early stage of outdoor, home textile, business and leisure, as well as those in the mature stage such as formal clothing and women's shoes, sports apparel is still growing in China. Secondly, market opportunities such as jogging, ball games, outdoor and other segments are clear; third, the awareness of women's health campaign has awakened, showing a certain market potential.

According to the analysis report of women's sporting goods consumption in department stores, the male sporting goods market has become a buyer's market, while the categories and styles of women's sports products account for only 30%-35% of sports brand products, and there is a huge growth space for women sports products segmentation market.

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Lining is looking at the potential growth point of women's sports products in the second tier cities. The brand cooperation with Danskin is focused on the market segments of professional fitness products such as professional dance and yoga.

In the signing, Lining declared: "the sportswear market of women has great potential for development. Acting Danskin brand is of great significance in Li Ning Co's brand strategy."

However, although Danskin is already a time-honored brand abroad, it has a high reputation in the US and Japan market.

But for the Chinese market, Danskin is only a "new man". Therefore, in cooperation with Li Ning Co, Ai Connie J is mainly responsible for brand marketing, such as brand image building, looking for spokesmen, social media and so on.

Li Ning Co provides business level operation, establishes operation team for Danskin brand, and is responsible for brand positioning, product design, production, sales and supply chain.

Women sports market, "let a hundred flowers bloom".

Like Lining, Liu Xuan, who has the same gymnastics background, also wants to cut the women's sports market.

36 krypton has reported that Liu Xuan's Balanpie balanced school was created this year.

The brand is designed to match Asian women's sportswear for the size and market demand of Asian women, to meet the needs of women for their professional and fashion wear.

And Lining also has to face Adidas Stella McCartney, the upcoming entry into China's Canadian brand Lululemon and other competing products strong attack.

Lululemon is focused on the vertical field of yoga clothing. Since its establishment in 1998, it has become the largest manufacturer of yoga clothing in North America.

As of 2014, Lululemon sales revenue of nearly $2 billion.