Where Will Lining Go In The New Stage Of "Adverse Growth"?

August 10th is the 29 birthday of Lining brand. At the Lining center in Tongzhou, Beijing, founder Lining appeared at the event to take photos with his employees, wearing the T-shirt on the corporate culture with the word "China Lining". In the lobby of Building 1, not far behind him, there is a large Chinese Lining Fang Yin icon. The vivid red is very striking in the office environment dominated by white and ash.

Lining, director of public relations, explained to reporters that this is a special item made for Mr. Lining's shooting activities in March this year, because the February 2018 New York fashion week, which made the fame of "China Lining" famous, can be regarded as a watershed of brand development. After that, Lining, the fashion line, symbolized Lining's opportunity to return to everyone's eyes.

A few days later, the Li Ning Co released the interim results announcement for 2019. Group revenue in the first half of this year was 6 billion 255 million yuan, an increase of 32.7% over the same period last year. Net profit was 795 million yuan, and net interest rate rose to 5.69% from 12.7% in the same period last year, an increase of 196%. According to estimates, the stock price of Lining (02331.HK) has increased by 131.65% since the beginning of this year, and its market value has nearly doubled three times compared with the same period last year, which has now reached HK $50 billion. According to the announcement, the growth of performance is mainly due to "through the effective integration of Chinese elements and their own" sports genes ", the recognition of Lining brand has significantly improved, and the income of all channels has recorded a higher growth.

This verifies the prediction of the 2018 earnings conference founder Lining, "China Lining will lead the future". Since the beginning of last year, the strong fashion series "China Lining" has been the biggest embodiment of Lining's "Chinese elements". Fashion design and fashion elements combined with Chinese elements have been popular among young people, the four exposure to the international fashion week, the spread of artists and KOL, and the 70 high profit Lining fashion shops in China. Various initiatives led to the first half of 2019, China Lining sports fashion clothing sales volume of more than 5 million 200 thousand, retail sales growth rate of 54%, in the retail sales of Lining accounted for 29%, more than basketball became the largest category of Lining.

In the Li Ning Co's latest mid term performance news release, fashion week and China Lining have been defined as "group core strategic projects". It seems that the Lining brand is approaching the new stage of brand development by relying on the "young Chinese Lining" series.

　　 Return to line of sight after 95

Cui Jingxin, born in 1998 in Foshan and Zeng Yue, who was born in Zibo, Shandong, in 1999, said that Lining's brand was out of sight after their junior high school.

Previously, Zeng Yue elementary school had been in Foshan Lining gymnastic school, and Cui Jingxin was once a fan of Li Ningchao's light running shoes, because he saved money for 12 generations and then 13 generations immediately launched and "died of anger."

After entering the musical circle, he found that Avanga, who likes "entering the hearts of the people", often wore the products of Chinese Lining. He also appeared as a brand friend in Paris Lining's 2020 spring and summer show in June this year. "It's a living sign!"

Cui Jingxin only bought Lining's professional sports products earlier. After discovering that Lining's sports and leisure fashion products began to become popular, she thought that the prices of these products seemed to be higher than those of previous products. Later, compared with other brands of similar products, it was found that the series design of Lining and China was very characteristic, because the style was pretty, and it could also accept slightly higher price than other domestic sports brands.

Fu Jingxuan, a freshman in Beijing, saw the love story of "nine series of deer embroidered sweater" in the series of "China Lining" - Lining's 2019 spring and summer series Paris fashion week's love affair at the first sight. "I'm surprised at the embroidery technology in China, and I feel hot about the color matching and design of the Chinese style." Fu Jingxuan said. Before the "China Lining" series, she paid little attention to Lining's products. She immediately decided to start selling the series on line Lining Tmall official flagship store.

In addition to the design of "hot blooded" products, Lining, China, is recognized by the new generation of young people as a new series. It has nothing to do with its new marketing strategy: the fashion week of Paris in June this year is the fourth time for the Lining brand to enter the international stage. After that, micro-blog's topic has been read by 270 million, and more than 12 thousand articles have been discussed. In October of last year, NING SPACE of Lining's flash shop landed on the core business circle of Shenzhen, Beijing and Guangzhou, including Beijing street artist OG Slick, rap singer GAI and so on, and became the predecessor of Lining fashion shop in China.

In addition, joint red flag, joint electric contest, joint people's daily new media...... Each Lining joint name will cause a new round of hot debate. In many series of joint products, you can see the distinctive red bottom seal of Chinese Lining. In the latest financial reports, "create joint events, enhance brand trends and fashion attributes", "turn fans into fans of fans", "select KOL resources that are consistent with product consistency", "touch up and expand target consumers" are located in the layout of Li Ning Co's marketing resources.

Li Ning Co's previous sponsorship strategy has also laid a certain consumer base for China's Lining explosion. Since the 2013-2014 season, Lining (China) Sporting Goods Co., Ltd. has been the sponsor partner of CUBA and CUBS in the College Basketball League. Li Zhouyan, who was studying in Guangdong with her boyfriend, said that Lining's products must be worn when her boyfriend took part in CUBA. The feeling at that time was that the product was comfortable but not very fashionable. "After Lining came out, we thought it was very good-looking, Chinese style, and personality, and support domestic products." I bought my coat and socks. She and her boyfriend were born in 1995.

In order to better understand the popularity and recognition of Chinese Lining in young groups, the reporter designed and distributed a questionnaire named "China Lining market image survey", and collected 200 valid samples in three days. Statistics showed that respondents aged 18-25 accounted for 78% of the total. Among them, for "do you know" Chinese Lining "series products, when the question gives the logo of China's Lining product, 83.3% of the 18-25 year old respondents choose" know China Lining ", which is higher than the average value of 82.5% of all ages.

The questionnaire also shows that nearly 30% of Chinese Lining consumers have bought Supreme/Off-White and other American fashion costumes, which shows that the audience of Chinese Lining and the younger generation have gathered in a considerable scale.

　 "The combination of cool, tide and age is wonderful."

In July 25th, at the door of China Lining fashion shop in Sanlitun, Beijing, Ms. Wang took out a phone from her mobile phone and the "Chinese Lining" side of the shop door. Ms. Wang is in Guangdong and travels to Beijing to pass through Lining fashion store in China. "Because I am not particularly fond of sports brands, some sports brands are hard for me to come into contact with. But now it's a national trend. Let's make more choices and choose to enter his shop to shop.

Since China Lining opened its fame in New York fashion week, the labels of "national wind", "national tide" and "light of domestic products" have gone hand in hand. Fu Jingxuan said: "before China's Lining, most of the domestic brands were imitating the trend of foreign countries. In China, Li Ningzhong, I saw the Chinese style of designers. Lining, a pioneer in China, has led the new trend of the national wind.

In fact, in addition to the word "China" before the word "Lining", this explains the willingness of Li Ning Co to emphasize Chinese elements in the product line two. In recent years, the "new trend of national wind" has been popular among young people, which is a great benefit for Lining, China. According to Nelson's report on China's consumption trend index in the second quarter of 2019, 68% of Chinese consumers prefer domestic brands, and second tier cities have higher willingness to buy domestic goods. Of the 29% consumers who want to buy domestic brands and products, 67% are keen on traditional aesthetics and 60% are cultural infiltration (domestic goods and Chinese style have become a way of life).

Fu Jingxuan takes a fancy to the nine color deer embroidery sweater of the Lining Series in China. The sweater is a street dress originated from the United States, and its circular embroidery "Tian Lu Xiang Rui" has an oriental style. Similarly, there are also Chinese style buttons designed for the "tri colored yellow" and "oversize" jacket in the series.

In fact, street elements, such as overalls, hoodies, waist bags and so on, are frequently used as the basis for the design of Lining products in China. They often appear in the same products with Chinese elements such as ink and ink and Chinese city landmarks, which can satisfy young people's demand for fashion and comfort, and express their recognition and admiration for traditional culture.

At present, there are 70 Lining fashion shops in China. Beijing Chaoyang Joy City, China Lining fashion shop opened in May this year, the store is dominated by white and silver, and a large number of fluorescent and transparent design elements are used. For example, the walls of men's shoes are "THE LEGEND BEGINS" surrounded by yellow LED lights, and are evaluated by consumers on the platform as "cool" and "technological sense".

At the same time, "restoring ancient ways" has also become one of the most popular keywords on the platform. In the shop's upper wall, the traditional Chinese Lining characters are distributed in the style of Hong Kong style. The theme poster of the 2020 spring and summer fashion week in Paris, under the background of the blue and white white glaze, is the main body of the posters. The poster is the ancients walking leisurely, rowing and playing table tennis in the traditional architecture and gardens. But after the mountains, the Triumphal Arch of Paris and the Paris tower stand far away. The wonderful design of the Chinese and Western scenes is echoing the theme of "fashion to Paris" fashion week.

"They are sold out. No other place is empty." Chaoyang Joy City, China's Lining fashion shop manager Xiao Ying said that the store products broken, broken code situation is very common, less than Sichuan, no foot and other series have a separate location, but after most goods sold quickly, had to put on other series of clothing.

Gray, a Lining fashion shop clerk in Sanlitun, China, said that most of the shops came from the "joint name" and "runway show". The quantity of the products was relatively small. Before the impression, the "Lining products" were basically "not" in the store. In July 25th, reporters at the Chinese Lining fashion shop in Sanlitun asked about the new "people's daily new media joint name" series that was released three days ago. "(Series) oblique backpacks came to ten yesterday, leaving only one today. When the hat is on, the day is gone. Gray said.

The interim report shows that Li Ning Co is "vigorously promoting the construction of Lining fashion store channel in China to meet the needs of high-end young fashion trends and promote further upgrading of brand competitiveness." In the public comment, Chaoyang Joy City, Lining fashion shop in China was labeled "net red shop" on the platform. "The combination of cool, tide and age is wonderful." The "eye of the Polaris" is commented on the platform.

In the interim performance release conference, Ceng Huafeng, chief financial officer of Lining, revealed that on the whole, China Lining fashion shop exhibited much higher performance in shops than in big stores. The average monthly store efficiency of Shanghai Raffles and Chengdu IFS exceeded 1 million yuan in the first half of the year, and more than 1 million 100 thousand yuan in Nanjing's De Ji square shop opened in March. As of the end of June 2019, there were 70 Lining fashion shops in China, mainly in the second tier cities, with 100-120 expected by the end of 2019.

The price is too high and the tide of transformation is too high? Where does Walker go?

The Paris fashion week in June this year is the fourth appearance of the Chinese Lining Series in the international stage. This time the theme is "going to Paris". From the fashion week of New York in February 2019, "Walker" has become an important design element of the Chinese Lining series clothing. Its connotation is "the line is coming, but the action is inevitable."

But in the Lining brand as a "Walker" set foot on the international stage, in the high-end field of high-profile development of new territories, consumers also expressed reluctance to pay.

It is reported that the average unit price of Chinese Lining series is more than 30% higher than that of traditional Lining products. When the product is sold out of official channels, a higher premium will appear on the market. The results of questionnaires designed and distributed by reporters showed that nearly 40% of respondents chose the "general" in terms of Lining's pricing acceptance, and the number of respondents who chose "more acceptable" and "more unacceptable" was roughly equal to 26%. It was asked whether more than half of the people chose "willing" if they did not consider the price factors and whether they would like to wear the clothes of "China Lining" series.

In the middle of last year, China Lining began working with Beijing University of Technology to launch a campus limited cooperative product such as sweaters and hoodies. Li Zhonglin, a student in the school, has been considering buying one, but has not taken any action. "Lining's price has not been the advantage of domestic products. The brand is not completely high-end, but the price is rising faster. Li Ning Co formally put forward the strategy of "single brand, multi category and multi-channel" this year, and it will take time to realize the transformation of high-end brand and guide consumers to accept.

In contrast, Anta, a local sports brand with multi brand strategy, seems more relaxed in the high-end market. While maintaining the popularity and popularity of Anta's main brand, in the subdivision area, high-end sports and fashion brand FILA, winter sports brand Descente, and a few days ago, the completion of the acquisition of outdoor old bird and so on, it can be responsible for Anta's high-end task, and contribute to the upgrading and diversification of Anta's brand image. In addition to Anta, XTEP, 360 degree and other domestic sports brands also have multi brand business.

For this reason, Lining, founder, has publicly told the media that when a brand's core competence is not mature, it will be more inefficient to disperse and copy other brands, and the possibility of failure will be greater, and it will disperse its resources and energy. The success rate is the highest on a single brand, to run the main brand. Although China's Lining and other high-end lines challenge the acceptance of some consumers on price, but from the book's perspective, it really adds new chips to Lining's brand value.

"High prices can not represent high-end, but low prices can not be." Although he found himself unable to afford a premium of 1899 yuan, Lining paid a price recognition to the price of China's "Lining." for Chinese students, the price is somewhat high. But from the brand grade of Lining in China, the current price is acceptable. Now Li Ning Co has found a more suitable way for brand development, and hopes that the brand will become more and more high-end and internationalized.

On the other hand, under the Li Ning Co's single brand strategy, the explosion of "China Lining" series has also attracted the speculation of the outside world: should Li Ning Co abandon the solid professional sports foundation laid down by many years and transform it into a fashion brand? Lining, director of public relations, said that China's Lining is only a series. Lining is always a professional sporting goods Brand Company. "We are serious in doing professional work."

However, China's Lining has now been identified as a "leading strategic group" core strategic project. Li Gang, general manager of Lining fashion line, said in an interview with the media, "we have found a correct and suitable development direction for Lining by doing fashion. At the same time, we hope to accumulate experience through other fashions such as basketball and running. Taking fashion as the breakthrough point, the ultimate goal is to hope that all product lines can develop. "

After the fashion Lining China opened up a new prospect for brand development, Li Ning Co seemed more willing to emphasize the "Lining experience value" than the outside world's expectation of Lining's "tide brand". It reflected Lining's uniqueness in terms of product technology and quality, professional sports service and purchase experience. This year, Li Ning Co's Guangxi supply base was officially launched. This is the first time that Li Ning Co has entered the manufacturing sector of the upper reaches of the sporting goods supply chain. It aims to improve the supply chain while promoting manufacturing upgrading and providing production support for products with more technological content. It is estimated that 30% of the footwear can be produced in the future.

"Persist in professionalism and innovate at the same time, combine professional movement with trend culture." Li Ning Co said. Gray to introduce the fashionable shoes of the casual shoes to the store customers, they will not forget to mention that "these shoes use Lining technology's" cloud bottom ", which is very light and has good cushioning effect." the bottom of those shoes is Lining's arc ".

"Walker" will go where, "on the one hand is professional, on the one hand is the trend", in the brand "inverse growth" process, Li Ning Co is more willing to believe that "sports and design is not conflict".