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    What Does Lining Rely On To Save Lining?

    2017/9/6 12:33:00 28

    LiningBrandClothing

    Li Ning Co recently released its 2017 performance report, which showed that in the first half of 2017,

    Lining

    The company's operating income reached 3 billion 996 million yuan, an increase of 11% over the same period, gross profit margin rose to 47.7%, net profit reached 189 million, an increase of 67% over the same period last year.

    From the operating situation, the dealer will be Lining at the order meeting.

    brand

    Product orders have been growing year by year for 14 consecutive quarters.

    According to the world clothing and shoe net, 2016 annual performance report shows that Lining group's annual revenue is 8 billion 15 million yuan, net profit of 643 million yuan, an increase of 4395.5% over the same period last year, and net profit has nearly 44 times in the 2015 year (net profit of 14 million yuan).

    From 2012 to 2014, the performance of Li Ning Co has been in a state of deficit. The losses in three years were 1 billion 980 million yuan, 390 million yuan and 780 million yuan respectively, totaling over 3 billion 100 million yuan.

    An obvious sign is that Li Ningzheng, the founder of the company, has led the company out of the haze and sports brand Lining has begun to recover.

    "Lining's pformation mission has reached nearly 40%."

    Lining said at the earnings conference.

    After achieving losses, Lining sports tried to find more possibilities outside Lining's main brand.

    After many ups and downs, he kept exploring Lining's new sports pformation and upgrading plan. In the light of the current results, it seems to be a step closer to success.

    War of pformation

    Lining sports has promoted and guided China's sports in almost a long period of time.

    clothing

    And the development of supplies industry.

    As a brand that has been established for 27 years, it has gone through a round of ups and downs.

    Since its listing in 2004, Lining sports development has been very robust. In 2008, Li Ning Co began to build B2C mode e-commerce platform, so that the company's business development reached its peak.

    Just like the gymnastic prince who lit the Beijing Olympic torch over the bird's nest in the world's attention, Lining's sports development is more and more noticeable.

    In 2009, its sales in China surpassed Adidas for the first time, second only to Nike, and reached its peak in 2010, with a turnover of 9 billion 478 million yuan and a net profit of 1 billion 108 million. It has more than 8000 stores in the whole country.

    However, a pformation that tries to update the brand image and raise the price has allowed Lining sports to experience Waterloo.

    After 2008, due to blind expansion, a large number of sports brands in 2011 had a backlog of stock.

    With the rapid development of sports industry, the contradiction between extension and expansion and connotative development is becoming more and more obvious.

    Lining saw the homogenization in the industry and took the initiative to make pformation and adjustment to the company.

    This "painful and ruthless hand" made Li Ning Co lose its performance for the three consecutive fiscal year.

     What is Lining to save Lining?

    In 2011, Lining sports began to go downhill, business continued to decline, shares fell 16%.

    In the background of the hard going inventory of the industry, Lining sports ushered in its first loss since 1990, with a loss of 1 billion 979 million in 2012.

    2013 revenue of 5 billion 824 million yuan, net profit loss of 391 million yuan, 2014 revenue of 6 billion 730 million yuan, net profit loss of 781 million yuan.

    Li Ning Co has lost more than 3 billion 100 million yuan in its losses in three years.

    At the same time, the huge distribution system played a counterproductive role. Lining sports began to close shop. By the end of 2014, the number of stores in the country had been reduced from 8000 to more than 5000.

    Back to war

    From the earnings report released in 2015, 2014's performance is still very bleak.

    In order to prevent the decline, the founder of the glorious retreat to the scene was launched again.

    In March 18, 2015, Li Ning Co announced that executive chairman Lining will act as deputy chief executive officer. Lining sports will pform from sports equipment provider to "Internet + sports life experience" provider. Brand slogan will also be changed from "let change happen" to "anything is possible".

    That is to say, Lining began to take charge of the company and carry out a series of new attempts and explorations.

    In order to show the determination of the return, Lining began slowly to the forefront from 2014.

    One of the most striking details is that in January 21, 2015, Lining opened Sina micro-blog to interact with consumers and walked out of a step with sincerity and temperature.

    At present, this account already has more than 2 million 950 thousand fans, which is already a huge amount of fans for an entrepreneur.

    After opening micro-blog, efforts to improve the exposure: Brush micro-blog, sell Meng, write chicken soup, the more than 50 year old uncle Chao did not lose young people.

    Lining is no longer a tall cold gymnastics prince, is no longer a serious entrepreneur, has become a cute little old man, like to sell the expression of the bride.

    In order to get the recognition of the young people to the brand, after returning to the front line, Lining constantly integrated into the activities of young people and the interaction with young people.

    Ridicule Tian Liang's wax figure, ask a friend to help his "Idol" Ollie (Li Xiaopeng daughter) portrait, not only using Zhang Meng Xue and Fu Yuanhui's facial expression bag, or even making a self-expression facial expression bag.

    Looking at Lining's micro-blog, the image of Meng Meng's little old man has been stood up. It is obvious to all of us that a more than 50 year old uncle wants to integrate into the lifestyle of the young people.

    Everyone familiar with him knew that Lining had rushed away this year.

    In addition to micro-blog, Lining also frequently participated in various activities and entertainment.

    For example, the 2015-2016 season of China's men's basketball professional league (CBA) kick-off for the company's sponsorship season, appeared at the Tencent Guardian baby charity program, and even took her daughter to the Shenzhen marathon.

    The good sign is that Lining's various concessions and efforts have finally put the company on the right track: in the second half of 2015, Lining sports turned into a deficit.

    Two years later, Lining, who is still pushing ahead with the pformation plan, has achieved sustained growth.

    "My duty is to make Lining return to profitability and continue to make profits."

    Lining made this statement in an interview with the media.

    Fans commented at micro-blog: "this is the right idea, or the founder is back!"

    The re opening of the slogan "anything is possible" and the return of Lining's entrepreneur spirit have given Li Ning Co more strength and weight.

    Perhaps, just like Starbucks's Schultz, DELL's Michael and DELL's return, Lining is also saving the star company.

    Victory horn

    What does Lining rely on to save Lining?

    Judging from the performance announced in August 11th this year, it is quite a bit of a "return of the king", but this return is rather difficult.

    In the case of internal losses and strong enemies, Lining completed the redemption of "Lining".

    {page_break}

    Revitalization of multi brand program

    In October 18, 2016, Li Ning Co announced that it had obtained the exclusive right to operate Danskin in mainland China and Macao.

    In 1980s, Danskin remained the top of the list of women's tights in the United States for ten years.

    Lining's move is undoubtedly aimed at opening up the market for women's sports. This is also the potential market for all major brands in active layout.

    The fast-growing children's clothing market is another object of Li Ning Co bets.

    Lining sports announced this year to withdraw the authorization of Lining KIDS and launch self brand Lining YOUNG.

    In the first half of 2017, Lining YOUNG opened about 20 outlets in 14 provinces and concentrated in the northern region, and plans to add 70 stores in the second half of the year.

    In addition, the fast fashion brand "spring label", which is located in leisure sports, is also expanding its offline channels. There are currently 8 sales outlets.

    At the same time, Lining spared no effort in R & D and promotion in science and technology and Internet.

    For example, the strategic cooperation between Li Ning Co and millet ecological chain enterprises and the founder of millet bracelet, the two sides will jointly build a new generation of intelligent running shoes and explore the health field of big data. This move marks the turning of Li Ning Co from traditional sports shoes and clothing brands to intelligent sports.

    Product line operation tracks market demand

    "Product experience" is the most important thing since Lining's return.

    It also makes the Li Ning Co more considerate and accurate on the point of the product line and is rewarded with performance.

    In the first half of this year, Li Ning Co complies with the trend of running and fitness, and the star products such as Li Ningchao light fourteen generation running shoes and Lining Wade Road 5 have been promoted, thus driving the growth of core businesses.

    In addition, Li Ning Co also deepens the interaction and emotion between brands and consumers through sports events.

    In June this year, after becoming the official partner of the Rockets, Lining Basketball Academy was launched to complete the overall layout of the youth basketball training program.

    At the same time, the company continues to dedicate its best products to the 14-28 year old main basketball consumer group for the growing market.

    Electricity supplier PK entity channel

    In the electricity supplier and the entity channel, Lining's action has also been quite effective.

    In the first half of this year, Lining's sports business income increased by 58%, and the contribution of e-commerce revenue to total revenue increased from 13% last year to 19% now.

    In the first half of 2017, Li Ning Co took the initiative to adjust its stores, reducing the number of sales outlets by 111, opening up efficient stores, and closing the loss shop, becoming the core strategy of Lining in stores in the future.

    "It used to be 80-200 square meters of stores, but it was difficult to cover all categories.

    In the future, more stores will be converted to more than 400 square meters.

    We should enhance the efficiency and profitability of single stores, and close inefficient and loss stores.

    Lining said.

    Judging from the current results, Lining sports seems to be nirvana, but the position of the domestic sports brand has been taken away by Anta.

    Whether the future "Lining" can climb again will probably be much more difficult than it was ten years ago.

    However, many people are still optimistic about "Lining". The industry estimates that according to the recovery trend of two years, "Lining" will create a new high in 2018.

    If this prediction is realized, Lining will write a brilliant example in the Chinese business community as an entrepreneur.

    In fact, he has led the company's return of the king to a brilliant conclusion.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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