Lining: Hero Returns! After 8 Years, It Will Break 10 Billion Points.

In March 22nd, Lining, a Hong Kong stock listed company, released its 2018 financial year performance report.

As of December 31, 2018, the annual revenue increased 18.45% to RMB 10 billion 511 million yuan, and net profit increased 39% to 715 million yuan.

Prior to that, Li Ning Co's highest revenue was 9 billion 778 million yuan in fiscal year 2010. Today, the company has achieved a profit of 10 billion yuan for the first time.

By the end of 2018, the number of Lining sales outlets in China (excluding Lining YOUNG) totaled 6344, with a net increase of 82 in the year.

Among them, the retail business decreased by 35, and wholesale business increased by 117.

In addition, there are 793 sales outlets for children's wear brand Lining YOUNG.

On the cost side, the proportion of advertising revenue to revenue has dropped from 11.1% in 2017 to 10.4%, driving the total annual distribution expenditure down by 1.6 percentage points.

Lining's R & D cost has increased from 1.9% to 2.2%.

However, after the 2017 fiscal year, this proportion is still lagging behind in the local industry.

By contrast, the proportion of Anta, XTEP and XTEP reached 5.2%, 4.1% and 2.6% respectively.

With the disclosure of Lining's earnings report, the four major local brands have released the 2018 financial year performance list - Anta, XTEP and 31st degree's annual revenue are 24 billion 100 million yuan, 6 billion 383 million yuan and 5 billion 187 million yuan respectively, Anta continues to consolidate the top position of domestic brands, while Lining is firmly in the second place.

With Anta and XTEP going further in the multi brand strategy.

Lining said:

It will not expand business quickly through acquisitions. "Li Ning Co will develop all kinds of products and products based on its brand. In the future, it will consider developing into multi category and multi brand from the group level, but it is also the Lining brand, not the acquisition of other brands."

Lining, founder and executive chairman of the group, said:

"In 2018, we are still focusing on building and consolidating Lining experience value, enhancing communication and interaction experience with consumers through digitalization, while accurately grasping the current hot spots, attracting more young consumers, and deepening consumer recognition of brands.

Looking ahead, we will continue to promote "single brand, multi category, multi-channel" strategy, consolidate and improve the core business focus, continue to focus on Lining experience value, to enhance efficiency as the core, to achieve the healthy and sustainable development of the company's future earnings.

In terms of products, we will continue to combine professional sports and fashion culture to further consolidate brand strength.

We will continue to enhance the channel efficiency, seek the implementation of diversified development and efficient store strategy, and improve the online and offline integrated business mode.

In addition, we will continue to push forward the development of digital strategy and further consolidate the overall marketing layout.

In terms of new business, we are still focusing on improving the profitability of single stores. We will use resources reasonably and cautiously to open up business opportunities and market potential, and cultivate new opportunities for the company's long-term development and profit growth.

In the process of gradual optimization of consumption structure, we expect that people's consumption demand will become more sophisticated and diversified. In order to adapt to the industry trend and create successful business opportunities in a changing market environment, we will continue to focus on products, consolidate brand power and deepen Lining's value.

In the future, we will continue to devote major resources to sports knowledge learning, research and development of sports technology and create Lining brand experience, and actively seek and expand more business development space.

At the press conference, Lining, founder of the "China first, Asia first, international leading" brand pursuit, which is reminiscent of Anta.

As the two largest domestic sports brand, people habitually compare them.

Lining was once a well deserved domestic sporting goods brand leader. Since its establishment in 1990, he has long taken the lead position. In 2010, during the glorious period, Lining's revenue reached 9 billion 700 million yuan, becoming the most famous brand of Chinese sports brand, which was close to the 10 billion revenue. However, it finally lost the opportunity because of the industry environment and the problems of Lining itself, and then was surpassed by Anta and gave up the throne.

In 2018, Lining handed in the best pcript of history, and revenue eventually broke through 10 billion yuan, but compared to the old rival Anta group's astonishing 24 billion 100 million yuan revenue, some people sigh that the gap between Lining and the leader is getting bigger and bigger.

It should be pointed out that Anta's stunning report card can not be separated from its great success in multi brand production.

In the 2018 annual press conference of Anta group, FILA has been known as the "two main brands" with Anta. Although it does not know the proportion of FILA in the group's revenue at present, according to its official data, by December 11, 2018, the annual sales of FILA have exceeded 10 billion yuan and become the first sub brand of Anta group to enter the club of ten billion yuan.

It is because of the sweetness of the multi brand strategy that Anta has only 35 billion yuan to buy the international sporting goods group, amamfin, to speed up the development of many brands.

But if we compare the Lining brand and the Anta brand list, what is the difference between the two?

At present, Lining's other brands earn less than 1%, which means that the turnover of Lining brand is also about 10 billion yuan.

Does this mean that the comparison between Lining brand and Anta brand is not so great?

After all, in the Anta 24 billion 100 million revenue, other brands represented by FILA have already occupied a very important position.

With the single brand and multi category strategy put forward, Lining will focus on the brand building of Lining in the future, and realize the opportunity to surpass Anta's single brand.

More than one sentence, from the brand pricing and consumer positioning, etc., compared with other domestic sports brand, Lining has a stronger premium capability.

In addition, Lining and Ding Shizhong are two different entrepreneurs in the layout of sports industry strategy is also very different.

The latter focused on creating world-class sporting goods group, and Lining put forward a big platform strategy. In the recent interview with the twenty-first Century business review, Lining himself defined another Chinese company, CEO, as China's flagship platform for the development of the sports industry. Li Ning Co is only one subset of it.

In other words, in addition to sporting goods, Lining is seeking the layout of sports industry chain including venue operation, sports training and sports brokers.

In the conference room on the 35 floor of Hongkong central tower, the poster featuring Lining's two degree landing on New York fashion week is the background of this conference. The poster's meaning is "obstruction and long, and the line is coming."

This seems to fit Lining, who has just stepped through the billions of revenue. It is only a start for Lining, who aims to become China's first, Asia's first and international leading sports brand.