Sports Brand Encountered "Cold Winter" Lining Mode Is Doomed

In 2008, the Beijing Olympic Games made Lining a famous brand of sports brand, and the company's business went to the top of the company by the chairman of the company and the brand founder Lining, who carried the torch around the field for a week at the opening ceremony.

This year, Li Ning Co took the place of Adidas and took part in the domestic campaign.

Online shopping ranking "second seats".

However, as time goes by, with the global economic downturn, the Li Ning Co has also encountered the cold winter of sports brands: high inventory of products, "change of face" of management, and decline of company performance.

A series of problems put them in deep trouble.

But Li Ning Co's series of changes this year and Lining's "re emergence" show the firm's determination to tide over difficulties, and Lining himself is trying to make the company go on the track of "returning to the essence of sports".

Li Ning Co is trapped

At present, China's sports commodity predator - Li Ning Co is facing the biggest dilemma in the history of the company: internally, the company must face the pressure of insufficient consumption power and various business problems.

External, Lining needs to compete with Adidas, Nike and other international brands to seize the consumer market.

Facing the situation of internal and external difficulties, the Li Ning Co is in a very dangerous position.

Li Ning Co's semi annual report showed that its operating income in the first half of the year decreased by 9.5% to 3 billion 880 million yuan, and its net profit dropped by 85%, which was only 44 million yuan.

In addition, in the first half of the year, the company closed down some inefficient stores in order to control the cost and efficiency of new stores. The number of Lining retail outlets was reduced to 7303, a decrease of 952.

According to the reporter, in Qingdao, Wuhan and other places, Li Ning Co closed shop.

In addition, Lining also announced that under the current business environment, the board of directors believed that cash should be retained for future development of the group and decided not to pay the interim dividend for the first 6 months of this year.

In this regard, Li Ning Co responsible person told reporters that at present, China's sporting goods industry is undergoing a pition period, Li Ning Co is also not immune.

"In fact, in the area where I am in charge, the sales of Li Ning Co products, especially badminton products, are good, but the market environment is not good enough, which restricts the development of the company."

The responsible person told reporters frankly.

"Over the past few years, the problem of homogenization of sports brands in China has been serious, and the rapid expansion of channels has led to overproduction of terminal products, showing excessive inventory, and so on.

Zhang Qing, chief executive officer of Beijing key sports consulting company, said.

"At present, China's sports brand development has entered a stage of adjustment, which is a process of survival of the fittest."

Financial commentator Qin Ming told reporters that only after this painful period can China's sports brand become bigger and stronger.

Lining, chairman of Li Ning Co, said that in the next 3 years, there will be new changes in the competition pattern of China's sporting goods market.

"We believe that the pformation of the industry itself and the pformation of competition pattern are inevitable, but the management reform and strategic adjustment that Li Ning Co is carrying out will help us to adapt ourselves to the long-term development of China's sporting goods industry."

According to the relevant agencies, in 2013, the domestic sporting goods industry will also be in a period of adjustment, or in 2014.

"Three Focuses"

In 2010, Li Ning Co changed its brand slogan from "anything is possible" to "post-90s, let change happen".

It was then that Li Ning Co really changed and embarrassed.

In the industry view, this is the biggest failure of Li Ning Co.

Faced with the dilemma, change has become the only way to revival.

According to the reporter, at present,

The company put forward the strategy of "Three Focuses", that is, focusing on the core brand -- Lining and focusing on core business -- returning to the essence of sports and focusing on the core market, the Chinese mainland market.

"For Li Ning Co, developing core business is the top priority of the strategy."

The responsible person told reporters that at present, the company has identified the development of basketball, badminton, track and field 3 sports product line.

According to the reporter's understanding, at present, Li Ning Co has launched two major measures for basketball projects: first, to get the equipment sponsorship of the Chinese Basketball League for 5 years; two, to sign the American basketball superstar Wade, and to expand the international market business.

At the same time, the company also worked with China's national badminton team to continue sponsoring the dragon team in China and abroad.

At this point, Li Ning Co has been moving forward in accordance with the "recovery plan".

According to the insiders, the Li Ning Co urgently needs to identify the brand positioning, clarify the development ideas, adjust the product mix, and create its own brand by providing personalized products.

However, Ma Gang, an independent critic of shoe and garment industry, reminds us that although Li Ning Co's reform measures are relatively pertinent, there is a problem that can not be ignored, that is, Li Ning Co's management team is incomplete.

"No perfect team management and implementation of change, and then a perfect change plan will not help."

He stressed.

Now Lining himself is less athletic and more business oriented, but he still carries the dream of dedication to Chinese sports.

"My dream is to be a great Chinese sports brand, but to realize this dream in reality, we will encounter many difficulties."

He said frankly, "I often give myself encouragement: I am not a gymnast at the beginning and become the champion of the world. I am also moving forward step by step, to overcome a difficult step, to overcome a difficulty and to go to a higher level, and finally to take the Olympic champion.

As long as we

I also believe that this dream will come true.