H & M Blocked By Major E-Commerce Platforms

1、 Li Ning, a magic brand

Recently, we have witnessed with our own eyes what is the "ice and fire double sky".

H & M provoked national outrage for boycotting Xinjiang cotton. As a result, it began to be boycotted by the whole network.

Overnight, H & M evaporated in Taobao, tmall, pinduoduo, vipshop and other major e-commerce platforms

Not only that, app stores including Huawei, Xiaomi, vivo and Tencent app have been removed from the H & M mall app store.

International brands are unreliable, and domestic brands naturally become the object of support. On the Internet, a wave of support for domestic products is unfolding vigorously.

Li Ning was originally one of the representative brands of domestic products, which naturally attracted much attention. At the same time, people have also found that it has always written the adoption of Xinjiang cotton on its label - is not this gesture "patriotic" written on its face?

This is the root of Miao Hong's domestic brand, is it worth your support?

Therefore, the capital market gave Li Ning good feedback.

On March 25, Li Ning's share price soared by 10.74%, increasing its market value by more than 10 billion Hong Kong dollars. After the opening of Hong Kong stock market on March 26, Li Ning's share price rose by nearly 9% and its market value increased by HK $10 billion.

In other words, in less than a day and a half, the market value of Li Ning has soared by more than HK $20 billion.

So far, the market value of Li Ning is HK $128 billion.

On dewu app, the price of Li Ning's related products has increased by half, enough to see the enthusiasm of the market.

When it comes to Li Ning, it can be regarded as a treasure brand.

Seven or eight years ago, Li Ning was ridiculed as "falling into the altar". Because it is no longer the glory of Beijing Olympic Games.

At that time, Li Ning was the pronoun of "soil" and "low" - on the big billboard, Lin Dan was wearing a royal blue sportswear, holding the badminton racket on his shoulder, and half opening his honey colored chest muscles, publicizing "Li Ning, post-90s".

Its revenue is also worrying: from 2012 to 2014, it lost nearly 3 billion yuan, which is basically an endangered enterprise with nearly broken capital chain.

Even the rating of Li Ning related reports given by securities companies is "selling", which means avoiding it.

However, after several years of silence, Li Ning miraculously made a comeback.

This has to mention its famous show in 2018.

What we thought of as a local Li Ning has turned into a fashionable brand with retro style, street style and Chinese style

Netizens are very surprised: is this Li Ning I know?

In any case, Li Ning's image of "national tide" was established, which made the impression of domestic products in everyone's mind.

Li Ning also turned losses into profits, and its performance has been on the rise in recent years

In 2019, Li Ning's income will reach 13.870 billion yuan, up 32.0% year-on-year, and its gross profit will reach 6.805 billion yuan. In 2020, the operating income of Li Ning will be 14.457 billion yuan, with a year-on-year increase of 4.2%, and its gross profit will reach 7.094 billion yuan.

You know, the situation Li Ning is facing is not simple - Nike ADI killed the four sides before, and Anta special step is covetous. How did Li Ning rise again under the circumstance of surrounded by powerful enemies?

2、 How did Li Ning turn against the wind?

First of all, a strong man is broken and his boat is broken.

There are several reasons for Li Ning's decline before: overstocking of inventory has brought down the performance; too many stores have opened and the rent is too heavy; too many branch brands have distracted Li Ning's energy.

As a result, Li Ning began a large-scale contraction of the front plan.

First, it bought back the inventory of the dealers in one time, and bought back the goods that the dealers couldn't sell out and handled them in a unified way. This move has greatly promoted the return of inventory, boosted the confidence of dealers, and laid the foundation for the rapid introduction of new products.

Then it started closing. From 2012 to 2014, Li Ning cut down 1379 low efficiency distribution stores, further saving expenses.

Previously, Li Ning also invested in a large number of brands, such as Hongshuangxi and Kaisheng, but the development was not as expected. So Li Ning adjusted the multi brand line in time and put its energy on the main brand again.

Secondly, we should increase R & D and enhance product strength.

Part of the reason why Nike and Adi can dominate the market is due to the black technology of their * * industry. Li Ning realized the importance of scientific and technological attributes of products, and began to increase R & D investment and increase the scientific and technological content of products.

Since 2016, Li Ning's R & D expenses have increased year by year, reaching 361 million yuan in 2019, with a year-on-year increase of 55.95%. In terms of shoe science and technology, the shock absorption technology represented by Li ningyun, Li Ning ring bow, Li Ning string bow and Li Ning arc and "Li Ning Ju" light elastic technology appeared.

Although these technologies may not be out of the circle, this is definitely a leap for domestic brands.

Furthermore, we should explore e-commerce channels and find new growth points.

Li Ning is the first domestic sports brand to start building online channels. In 2008, Li Ning established an e-commerce business department in Shanghai and was the first batch of brand merchants to enter tmall platform.

In order to optimize the experience of consumers, Li Ning can pick up goods from single stores online and offline, order goods from stores and send them home by express delivery. Li Ning even developed an independent product line "counter flow -- trace" for e-commerce online to enhance the brand tone.

It is precisely because of Li Ning's emphasis on e-commerce that Li Ning's e-commerce sector has made more and more money. From 2017 to 2019, it has made 1.668 billion yuan, 2.218 billion yuan and 3.121 billion yuan, showing an upward trend.

Of course, the most important factor is Li Ning's marketing.

Li Ning not only gilded through New York Fashion Week and Paris fashion week, but also got involved in entertainment marketing. With the help of star effect, Li Ning promoted product sales. For example, he signed Xiao Zhan, a star, as the spokesman yesterday.

Through a variety of marketing, Li Ning's brand image of internationalization, fashion and youth has finally been established. More and more consumers are willing to pay.

3、 What are we talking about when we talk about the revival of Chinese goods?

This may be the era of revival of domestic products.

All along, European and American brands represent quality and fashion in our hearts. But in recent years, the new generation of consumers has gradually become the main force of consumption. With the improvement of national strength, their cultural self-confidence is gradually increasing, and naturally they will start to look at domestic products.

Besides Li Ning, a large number of domestic brands, such as Anta, diary, taipingniao and baiqueling, are gradually moving towards the mainstream vision and starting to glow.

But what we need to think about is, besides the national enthusiasm, how can Chinese goods really rise?

First of all, the rise of domestic products can not only be achieved by simply grafting some Chinese symbols or selling feelings. The real core lies in whether the domestic brand can find its own brand spiritual culture.

Foreign brands are often the best at this. Nike likes to shoot stories about ordinary people running, while Jordan likes to publicize how its founder turned from a black kid in a slum into a basketball player.

Can domestic brands create a magnificent and hot-blooded dream and shape their own cultural trend?

It is worth noting that Li Ning has advantages in this respect. Li Ning, its founder, is a legendary athlete, whose sports spirit can be connected with brand value. It depends on how Li Ning wants to build its own brand culture from this aspect.

Secondly, the domestic brands that can stand out in the fierce competition environment must be the enterprises that have accumulated rich experience and core barriers after years of market washing.

In addition to learning from foreign brands in marketing, domestic brands must also form their own core competitiveness. The foundation of brand is always the product.

In fact, enterprises like Li Ning, which have experienced a long time, have a little different flavor in the tide of domestic products.

It has experienced a variety of setbacks, fell down, was sung bad, but never give up, struggle, efforts, relying on their own strength to stand up again. This inspirational struggle process, on the contrary, makes it more advantageous in the competition.

Zhan Tianyou once said: "each of us should learn from what we have learned and do what we know to make our country rich and strong without external humiliation, which is enough to stand on the earth."

When major foreign brands play tricks to resist Xinjiang cotton, we can only make domestic brands strong, so that we can stand firmly and confidently on the earth.