Expert Opinion: Lining'S Unstable Development Strategy Leads To Declining Performance.

A few days ago Lining The group announced that it entered the field of children's wear with a brand-new management team and brand new logo, and released the development plan of Lining's children's clothing in the next 5 to 10 years. "Little Lining" will become the key direction of group development. It is reported that Lining group in recent years "several changes" are not popular, the original consumption of the main force 70, 80 after the purchase desire to decline, and its efforts to cultivate the 90 after not buying. This time targeting the children's clothing market, the sharp spanformation has triggered the criticism of insiders. Some people have pointed out that blindly pursuing innovation and change may not be able to achieve the desired effect.

"Little Lining" is not optimistic.

It is understood that the new concept of 2013 Lining children's clothing, spring and summer product orders will be held in June, the new store image, channel mode will also be unveiled in the second half. Li Ning Co responsible person said that in the next ten years, Lining's current consumer groups have become parents. Their own preferences for Lining brand will also extend to the children's choice of clothing, which will bring huge business opportunities to Lining children's clothing.

In the view of Li Ning Co, Lining has at least two advantages in the field of children's wear: first, after years of struggle in the field of adult sportswear, Lining already has strong brand awareness and influence; secondly, Lining's original business system in adult dress will also fully support and promote the development of "little Lining".

But Lining's action has been criticized by many people and consumers. "Today's children are very picky, like Nike, Adidas, these international brands, prices are second." Asked if he would buy Lining's children's clothes for children, Ms. Mo, who bought sports clothes in West Lake Road, Guangzhou, told reporters. Mr. Zhang, another sport hobby, said that Lining should work on product development and design to make a way for the current field of adult sports.

Zou Yiming, a senior marketing personage of sports brand, pointed out that Li Ning Co will be internationalized for a while, and then close to the "90s". At the same time, the children's clothing market will be opened up.

Company performance decline, profitability retrogression

Lining 2011 Annual report shows that sales revenue of 8 billion 930 million yuan, a year-on-year decrease of 5.8%, which is undoubtedly the nightmare of Lining's performance in 2011, so that its "boss" status is at stake. Anta's 2011 Annual report shows sales revenue of 8 billion 900 million yuan, up 20.2% from the same period last year, approaching Lining. In terms of operating profit, Anta realized 2 billion 11 million yuan, far exceeding Lining, and the operating indicators can still maintain the average level of the industry; and in terms of profitability, Lining's regression is more serious. From 2009 to 2010, Lining realized profits of 1 billion 342 million yuan and 1 billion 547 million yuan respectively, and dropped to 631 million yuan in 2011, far lower than the 960 million yuan in 2008.

In addition to the fierce pursuit of domestic sports brands, on the other hand, international brands' ambitions for the Chinese market are clear. Adidas, which was once surpassed by Li Ning Co, surged 28% in China last year, ranking first in the world, accounting for second of its market share. Nike has long been exploring its tentacles to China's four line to six line market. Obviously, Li Ning Co has been sandwiched between "tiger and Wolf". Lining group relevant responsible person said, Lining in 2011 China's sporting goods industry overall sales remain low growth, retail terminal is still facing the pressure of inventory, industry competition is more intense, "the next two to three years is the spanformation period of the industry."

We have not yet recovered from the tragic drop in net profit which has dropped by nearly 60%. Li Ning Co has suffered another "supply chain pollution incident". Not long ago, five environmental protection organizations such as the Public Environmental Research Center released the report on pollution investigation in China's textile industry. There are different degrees of pollution prevention and control violations in supply chains of Li Ning Co, Adidas, Nike and many other well-known enterprises. There are many problems such as large amount of sewage discharged by enterprises and low efficiency of water use. In this pollution incident, the "injury" is the most profound Li Ning Co, the outside world will soon be released Li Ning Co 2011 Annual Report turned out to control, referring directly to its "rich marketing inability to control pollution."

It is undeniable that Li Ning Co has been exploring in recent years. Transformation I have been working very hard on the road. In June 2010, Li Ning Co launched the largest brand remodeling campaign in the history of the company. It upgraded the brand LOGO, which has been used for 20 years, to the new brand LOGO of "Li Ning Co cross action", interpreted the new sports values in the form of "human", and boldly produced the slogan of "post-90s Li Ning Co" in order to catch the young consumer group. All these publicity points were placed in the first tier cities, and opened 70 sixth generation flagship stores in Beijing, Shanghai, Guangzhou, Shenzhen and other places, competing with Adidas, Nike and other international brands. However, judging from the market reaction, this reckless decision leads to the consequences of "two heads are not welcome."

Expert opinion: Lining's performance decline comes from unstable strategy.

"It can be said that Li Ning Co has repeatedly failed to rebuild its brand, and the timing of its selection is wrong." Director, Institute of circulation economics, Guangdong University of Business Wang Xian Qing It is believed that Li Ning Co has been rising rapidly in the early stage of enterprise development, but has lost its way after entering the mature stage. It is at a loss as to what to do, and its strategic thinking is not clear.

According to Wang Xianqing analysis, Li Ning Co has been in a short period of time in a short period of time in the creative, positioning, product design style of all kinds of swings and changes, and even including multi brand form to operate different markets, all without effect. The decline of Li Ning Co's performance comes from the instability of strategy. The well known "post-90s project" hastily launched, because it has not really thought about how to go deep into the marrow to rebuild the brand. The advocacy and creativity of the proposed communication can not excavate the spiritual essence of sports, lack of moving people's place, and ultimately lose the significance of remodeling.

Wang Xianqing also pointed out that in fact, the story of Lining's growth reflects the plight of the entire Chinese manufacturing industry. After the failure of the brand reconstruction, the problem highlighted is the dilemma faced by the whole industry in China: the core value of the brand itself has not been effectively promoted, and there is no irreplaceable nature. It is undeniable that at present, the sporting goods industry is in the most painful period of the industry. All enterprises are facing the same spanformation pain, and the adjustment time will be very long. Lining still hopes to take the lead in the adjustment period and usher in a new round of growth opportunities for the sporting goods industry.