Transformation Of Li Ning Co

Following a wave of core executive turnover in the first half of the year,

Two major personnel changes in one year may be seen as Lining.

At the end of June 2010, considering the unsustainable growth of relying on shop expansion in the context of soaring human costs and store rents, Li Ning Co initiated the brand remodeling and launched the brand new Slogan. "Make the Change".

However, since the Li Ning Co has made a strategic pformation, it has been tested, declining in performance, declining in orders, falling in share prices and resigning from senior executives. Especially since 2011, there has been little good news from Li Ning Co.

Even Zhang Zhiyong, President and chief executive of Li Ning Co, bluntly said, "we recognize that the brand redevelopment in the third quarter of last year is really unsuccessful."

In the past Li Ning Co, "everything is possible", not only net profit has increased year by year, and has surpassed.

In fact, Li Ning Co brand remodeling, emphasizing youth and fashion, is understandable. But the big sign of "post-90s Lining" is targeting the younger generation of consumers.

Li Ning Co has been established for 21 years, and has already formed a consumer group spanning many years of age. Too much emphasis on the age of consumers is not conducive to maintaining the original brand followers.

In addition, Li Ning Co's brand positioning is not clear and strategic change is very big.

Scrutinize, at the same time, we should be internationalized, be fashionable for a while, and have to exercise and change.

For so many years, no one can tell exactly what Lining's brand is.

As a result, it can only be high or low, sandwiched in the middle end of the industry.

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In addition to the crisis of the Li Ning Co, the risk of marketing channel is also an urgent problem to be solved.

Because of the sales channel reform implemented by Li Ning Co, it is to let large dealers buy out those small distributors whose monthly income is too low, which leads to the lack of confidence of dealers and the reduction of order quantity. Some of them even change their names to sell other brands.

Integrating sales channels and raising product prices are all Lining's performance in giving up the low-end market, but this step has not been successful.

In contrast, rival Nike and Adidas have been trying to "sink" the channel in recent years. In 2010, they planned in succession: in the next 5 years, new stores in the two or three line market will be increased, and the products will be closer to the two or three line market.

The three or four tier market is also dominated by the "Jinjiang shoe upper" represented by Anta and XTEP.

In particular, compared with Anta, the original channel advantage of Li Ning Co has been very weak.

According to the performance forecast issued by Li Ning Co in January 17th, as of the end of 2010, there were more than 7900 stores.

Over the same period, the number of Anta stores has increased to 7549, but the gap is only 400.

According to the personnel changes, Li Ning Co said that the adjustment of organizational structure and management personnel is a normal phenomenon. The group has enough talent reserves to meet the needs of business development and ensure its stability.

However, the adjustment of executives shows that the company is facing new challenges in terms of management and management. The resignation of executives will undoubtedly send a negative message to the market. The market will have a certain skepticism about its development prospects, which will affect its performance in the capital market, or cause its share price to drop to a certain extent.

Now it seems that the strategic pformation is not successful, but Lining has no intention of going back.

As reported in its performance report, it is expected that the company will remain in the throes of the reform process in the next two to three years.

Lining will use his own perseverance to get out of a new path.