Lining General Manager Of Electronic Commerce: Next Month Will Push For Network Products.

At the second China clothing e-commerce summit recently held, Lin Lin, general manager of Lining e-commerce, revealed that Lining will start pushing for Internet products next month. The following is the full text of the speech:
　
Lin Li: Ladies and gentlemen, everyone in the clothing industry. A few days ago, I attended an e-commerce forum in Chengdu in Chengdu. Gathered many officials of the country's deputy ministerial level, many experts at home and abroad, as well as experts in e-commerce, each value chain upstream and downstream experts, together to participate in a grand gathering. At that meeting, I really felt the heat of e-commerce in China. I felt very deeply at the Chengdu conference. I came to Hangzhou to attend the e-commerce forum of the clothing industry. This is the first time that I have been able to meet so many famous Chinese clothing brand enterprises in the conference hall. So many brand companies here can gather together and feel the confidence and determination of the apparel electronics industry.

Now I would like to share with you some work and experience gained by Li Ning Co over the past two years. Just now, Professor Han's speech was very wonderful. He focused on the fast response supply chain. This supply chain is also a topic we are very concerned about. But in today's speech, I may focus on channel, which is cross channel retail transformation.

I think there are many interactive links between today and tomorrow. I very much hope that we can have more in-depth discussions on various aspects of supply chain and other aspects in the following time.

Before I start, I will spend a minute to introduce some data from Li Ning Co. There is no need to introduce more about Li Ning Co. Since our listing in Hongkong in 2004, the overall sales performance has been increasing steadily, from 1 billion 878 million in 2004 to 8 billion 386 million in 2009, and the average load growth rate has reached 34%. Perhaps the e-commerce business here may feel dismissive. According to the development speed of e-commerce, it should increase by 100% every year, so our entire Lining e-commerce team is also working in this direction.

The second is about the traditional channels under our lines. At the end of 2008, the total number of shops was 6245. By the end of 2009, the number of Lining brand stores has increased by almost one thousand, reaching 7249, and this year will continue to expand. At the same time, we have opened badminton professional stores in Singapore, Hongkong and other places. In February this year, we set up a subsidiary in the United States and opened our first display shop.

We are familiar with the Lining brand. In fact, there are many other brands under the Lining group. For example, the famous table tennis brand red double happiness, and France's outdoor brand AI Gao, as well as our hypermarket brand heartbeat and so on. At present, Lining's e-commerce has set up flagship stores for these brands respectively.

The above is a brief introduction to our Li Ning Co. Now let's review the development process of our Lining Agel Ecommerce Ltd from the end of 2007 to the present two years. {page_break}

How did Li Ning Co think of starting e-commerce? Actually, the reason is also very simple. We did a lot of research at the end of 2007. At that time, we found that the Internet has already formed the sales channel of the Lining brand of the Internet spontaneously. So we feel that as Lining, if we do e-commerce, we will surely bring us a growth in business, a new channel and further development of our brand. Because we all know that Lining's target consumer group, because we are all sporting goods, must be young people, and young people between 14 and 18 years old. This young group must also be a heavy Internet user of the Internet. If we carry out a deep, seamless and intimate contact with them, we can make our brand popular in the minds of consumers. Therefore, brand expansion, promotion and interaction among consumers are also very important reasons for us to start e-commerce.

Electronic commerce has just begun to say that e-commerce is hot in China and red to purple. E-commerce must be the future trend. So for all these reasons, we started the electronic commerce in 2008. This PPT actually I share with you on many occasions, it will not start. To put it simply, any Brand Company, starting to do e-commerce, must consider all aspects carefully, and have its own strategic decisions, such as team, brand, product, channel, consumer, technology solution, and even starting from which point, it is necessary to give full consideration to it.

After two or three months of in-depth investigation and consideration, we decided to start our e-commerce. So this picture mainly introduces some important work done by Lining in the past two years. In January 2008, the Ministry of Commerce of Lining was formally established. In April 10th, it was also the first day of the official opening of Taobao mall. At that time, we also had a lot of cooperation. We are the first brands of Taobao mall to check in. In May 2008, we launched the mode of cooperation in network distribution and sale. Based on the current situation, we just mentioned that the Internet, which represented by Taobao as an e-commerce platform, has spontaneously formed a lot of online shops selling Lining, so it is necessary for us to have some channel management for these online stores. In June 18, 2008, immediately 2nd anniversary, the official business of Lining's brand was officially opened.

In August, the Olympic Games that month, launched many Olympic products, so the supply chain is very important, we sold at that time, out of stock, did not make up in time. In August, we won the world's ten largest network operator of Alibaba. In December 2008, the Shanghai Lining Agel Ecommerce Ltd was set up, marking the Lining group's electronic commerce as a real business unit for independent operation and development. In April of 2009, our official shopping arcade was revised for the first time. In the next one or two months, there will be second revisions.

In March this year, we launched the double happiness flagship store in Taobao. Our e-commerce has taken on the responsibility of the entire Lining group's e-commerce development. We also have to let every brand in the group gradually bring into the field of e-commerce. We are honored to be the most potential investment Award for e-commerce in China. At the meeting, I met Jingdong's leaders in e-commerce. I hope that one day our Lining e-commerce company is not just a gold seed or something.

The following is a brief introduction of our current overall operational framework. As a rule, if it is a simple Internet e-commerce company, the business mode is generally B2C. Even if we are on the Internet, our channel mode will be divided into B2C, B2B2C, and we are also exploring new e-business models. {page_break}

The following support is part of our functional departments, logistics centers, network operations centers, and very important marketing centers, as well as particularly important products supply chain. In this part, it should be said that several parts are combined to carry out a central kitchen type integration to take charge of the whole business expansion.

After more than two years of hard work, we have gained a lot. First of all, we are particularly proud that we have a team of e-commerce that we consider to be very excellent. At the same time, we established a relationship with Taobao and some mainstream e-commerce platforms. Lining's official online shopping mall has been established. At present, this business is growing day by day. It has become the highest income in our government Lining Agel Ecommerce Ltd. The management system of Lining network channel has also been established, and a very valuable consumer database has been established. A B2C operation system has been established.

The above is a brief review of my Lining e-commerce development over the past two years. Next, let's talk about cross channel retail transformation. This PPT came from IBM company. I feel very good, so I'll come over and share with you. Because we are all Brand Company, we are all in contact with consumers. What we do routinely is offline retail. Now that we are entering the online retail business one by one. IBM company has three directions through their research: one is customer centred. Especially as a company like Lining, our past models are mainly based on B2C. Today, I begin to focus on retail and consumer.

Internet e-commerce must be a good platform. Through this platform, we have established a very good interaction relationship with terminal consumers. It can affect our products and supply chain. Therefore, taking the customer as the center, I believe that we must be the focus of our attention in the future. As we Lining e-commerce, we have just mentioned that we have accumulated a very large number of users, databases.

Second cross channel optimization. Now we open the shop on the Internet and set up a channel for the Internet. We will explore more ways to optimize and integrate the Internet. This is the direction we should pay much attention to. For consumers, the greatest happiness is to freely and seamlessly cross various channels and get a complete customer experience. Yesterday, a friend of Alibaba asked me, what is customer experience? It runs through all links and channels, and also enables consumers to get a very good customer experience.

The third infrastructure is in the lead. It is related to the construction of IT platform for e-commerce. It is difficult to achieve good consumer interaction with good cross channel integration without a good infrastructure. So how many IT platforms have you been able to do with many friends in the whole e-business recently? How many modules can it be divided into? A friend subdivided twenty or thirty modules for me. I mean, do I mean that I need twenty or thirty outsourcing suppliers? Of course, there are many options.

The positioning of Lining's e-commerce. This is a very simple industry value chain. The traditional value chain is from suppliers, procurement, sales, channels to consumers. In the 2008, Lining e-business was defined as e - channel. In 2009 and 2010, we gradually moved it into e - commerce. Up to now, we have gone from pure e - commerce:e - channel+supply Chain. We need to integrate various channels or Internet Update channels, so that is a complete e-business in the true sense. So this is Lining's understanding of e-commerce.

We have very close cooperation with B2C platform, Taobao, pat and QQ. We and the integrated B2C mall, such as Dangdang, excellent and so on, including us and many points mall, member mall have very close cooperation. We are looking for all partners on the Internet to help Lining brand upgrade channels.

Our current partners are mainly distribution, consignment, direct operation and so on. At the moment, we also talk about some of the models we are exploring for C2B, mainly from three latitudes. One is the channel mode, which has been mentioned many times. Another aspect is channel depth. On the one hand, we will cooperate with all kinds of channel partners on the Internet. On the other hand, we have launched a gradual integration of online and offline channels. This integration project is huge and unprecedented. So I also hope that more and more ambitious people will join the line of integration and explore what is the real shortcut or the right way.

Channel width, I do not think that e-commerce is the end of the Internet. Now the 3G network has been released last year. I find that from last year to this year, the mobile Internet is getting hotter. So mobile phones in the future, and even back to the traditional call center, and so on, can become our e-commerce platform or a new type of innovation channel. So we will continue to expand the EC channel and Lining EC channel in three directions.

Of course, today we only do a few years ago, in the future no matter which brand of consumers, can be very free in the Internet, in the current stores, or mobile phones, terminals on the above can complete the shopping experience, this is our Lining in cross channel zero sale changes in an eventual dream. But the challenge is also great. First, the product and supply chain. We have made many attempts in product and supply chain. In June this year, we will launch our network product series, which will be launched on the Internet. But how to solve shortages and unsalable sales is also a problem. The second is the integration of online and offline channels. Integration is simple, but really to do is also involved in the integration of the entire group's IP system, the integration of online and offline interest relations, and many logistics cooperation.

The last thing is to mention the consumer experience. How can experience be optimized step by step? Consumers are willing to continue to buy Lining products. And continue in e-commerce channels to buy Lining's products. Such a goal may be endless, so we will continue to pursue, hoping to achieve a better result.

All right, these are my simple sharing with you as Li Ning Co's head of e-commerce. I hope we can have a little inspiration for you. I look forward to having more in-depth discussions with your colleagues in the clothing industry after the meeting. Thank you.