Lining Took Over Lotto For Exclusive Domestic License.

In recent days, Lining announced that it had signed an agreement with the Italy sports brand LottoSports, and won the exclusive manufacturing and franchising of the brand in China for 20 years at a total cost of not less than 930 million yuan.

In accordance with the concession agreement, LottoSports agreed to grant Lining the exclusive license to develop, manufacture, marketing, publicize, promote, distribute and sell Licensed Products in China, using the Lotto trademark for a period of 20 years.

Judging from the scope of the franchise, Lining's operation of Lotto brand is very close to the current operation of Kappa. The difference is that there is still a 20 year deadline between Lining and Lotto, and China is already the brand owner of Kappa in mainland China.

Lotto (Le Tu) is a famous sports brand in Italy. It has famous Italy design and sports marketing resources in the field of football and tennis.

Notice that LottoSports specifically agreed to grant Lining the right to develop and manufacture licensed products in China, which means that Lining can develop and design products using Lotto brand by himself.

Judging from the Lotto products currently on the market, the strong professional sports style is still the mainstream, similar to the Kappa before China's acquisition.

However, Lining sports did not disclose the direction of the future development of Lotto products, such as whether or not, like Kappa, take the sports fashion route to separate the professional sports image of Lining's own brand.

According to the announcement, Lining sports from January 1, 2009, the annual royalty payable to Italy LottoSports will be calculated on the basis of the percentage of the actual sales of the licensed products and the minimum annual amount will be provided.

According to the calculation, the minimum amount of royalty payable in 20 years is about 934 million yuan.

Quan Quan Lotto, China's design and manufacture, understands that at present, LottoSport has been doing business in the mainland of China, with two companies, such as Lotto (Nanjing) and lotto (Shanghai). Among them, Lotto (Nanjing) is mainly engaged in product design, R & D, procurement, distribution and marketing with Lotto trademarks in China, and Shanghai (Shanghai) is mainly engaged in retail products with Lotto trademarks in China.

In addition to the exclusive franchise, Lining will also acquire the goodwill of assets, inventory and property of two companies in Lotto (Nanjing) and lotto (Shanghai) at a price of no more than 25 million yuan. Thus, Lining sports can get some retail outlets (18 sales counters occupied by Lotto in Beijing and Shanghai Department stores).

At the same time, LottoSport will pay $15 million in publicity to Lining in the next 3 years, which will enhance Lining's bargaining power, increase sales scope and reduce costs.

In terms of Lotto brand value, it can not be compared with the two giants of Nike and Adidas.

In the industry, there is a view that the only way to join the fast fashion industry is to take the Kappa sports fashion route.

"Kappa has not been successful for many years in Lining's operation, and China has adjusted its positioning after obtaining the independent operation qualification of Kappa, and found the blue ocean area of sports fashion, which is still at a blank stage."

Venlo, an apparel industry analyst at Hua Jie, believes that Kappa and Lotto are on the same starting line from the perspective of brand value, but today's Kappa is no longer the same.

Yang Jing: editor in charge