How Should Lining Go In The Future?

CEO has just left office.

The company is also embroiled in the rumour that the Spanish subsidiary is bankrupt.

Li Ning Co clarified that it was only authorized by Spain that the sponsorship agreement signed with the Spanish national basketball team would not be affected.

Its overseas market share is very small, and its impact on the overall business of the group is limited. The international market will be explored in a controllable way.

Industry analysts believe that the most important task of Lining is to clean up.

And internationalization is also an inevitable choice. Lining must be accurate.

An accident

"Recent media reports on Li Ning Co Ltd

In fact, the relevant reports are not true.

In July 10th, Li Ning Co again told reporters about this.

The Li Ning Co issued a clarification announcement the previous day, denying the bankruptcy of its Spanish subsidiary.

A few days ago, according to media reports, the "Lining sports clothing company" registered in Spain has declared bankruptcy. There are many business contacts between Li Ning Co and Spain football and basketball clubs, and its bankruptcy will bring disaster to the players' clothing supply.

Football clubs such as Saragossa, Las Parma, celA Viggo and Vilva will all be injured to varying degrees by basketball clubs such as Malaga, Hara, and pharreal.

The Li Ning Co told our correspondent that Lining headquarters had received LN PLUS IBEROAMERICA S.L in July 4, 2012.

(empowerment)'s mail notification, due to the deterioration of the Spanish market environment and poor management, filed for bankruptcy.

The company is authorized by the group in Spain, not Lining's Spanish subsidiary.

Reported that Li Ning Co began in 2004 with a number of clubs in Spain to cooperate in the design and production of professional jerseys.

The uniform of Spain's 2008 Olympic Games in Beijing was provided by the Li Ning Co.

In response, the Li Ning Co responded that the Spanish authorized company signed some sponsorship of some clubs in its own name. Lining is now actively assisting the authorized company to solve the remaining problems after its bankruptcy, including assisting its sponsoring clubs to acquire equipment.

Meanwhile, the Li Ning Co said that the sponsorship agreement of the Spanish Basketball Association (the Spanish national basketball team) has been signed by Lining directly, and is directly working with Lining, which is totally different from the club signed by the aforementioned authorized parties. The implementation of the agreement will not be affected.

"This is just an accident, and there is no direct correlation with Li Ning Co."

CEO, Zhang Qing, a key sports consultancy in Beijing, told the China Economic Times reporter that at present, the proportion of Li Ning Co's overseas business in the group business is relatively low, no more than 10%, and its business in Spain is lower. Therefore, this incident has no significant impact on Li Ning Co's overseas business.

Li Ning Co also said that in 2011, Lining accounted for only 1.9% of the overseas market business, which had limited impact on the overall business of the group.

The international market will also explore ways of risk control.

Lining has a very small business scale in the Spanish market, which has limited impact on the overall business of the group.

Management team change

This incident is closely related to Lining's major personnel changes last weekend.

In July 5th, Lining, founder and executive chairman of Li Ning Co, said that Zhang Zhiyong, CEO of Li Ning Co, had resigned in July 4th. Before hiring the new chief executive, the company will be led by Jin Zhenjun and executive vice chairman of the company.

At this point, Lining began to return to the company's business. Lining will mainly focus on the external affairs and relations of the company. Jin Zhenjun is mainly responsible for the internal affairs and operation of the group.

Trapped in declining performance and difficult pformation, Li Ning Co received private equity funds TPG and GIC hole Singapore government direct investment limited in January this year, with a total investment of 561 million yuan and 189 million yuan, amounting to 750 million yuan.

Statistics show that Jin Zhenjun is a Korean American, a partner of TPG and head of Greater China, and Jin Zhenjun served as director of several TPG investment companies.

Li Ning Co has high hopes for Jin Zhenjun and his team in the company's reform.

Lining believes that Jin Zhenjun has gained rich experience in many Asian consumers and retail companies as chief executive and general manager, and has successfully promoted the pformation of consumer goods and retail companies in South Korea and China, including Korea DELL (micro-blog), Guanghui automobile and Daphne.

At the same time, Li Ning Co appointed Su Jingshi as an independent non-executive director.

Su Jingshi, chairman and chief executive officer of China business division, has over 20 years of management experience in China's leading consumer and retail chain businesses.

Li Ning Co hopes that Su Jingshi's accession will enhance the board's experience in China's consumer and retail market.

Jin Zhenjun and his team designed the three stage development plan for Li Ning Co.

Jin Zhenjun said that the first stage short-term measures have been put into effect, mainly improving the channel inventory and constructing the ideal cost structure. In the next 6 to 12 months, the main problem is to solve the trapped problems. The second stage focuses on improving the supply chain, marketing and product planning models, including product development and consumer experience. The third stage is to change Li Ning Co's business models in the next 2 to 4 years, so as to achieve the goal of improving profit structure and channels, retail efficiency, and cash and return on investment.

The independent commentator of sports industry, Ma Gang, told the China Economic Times reporter that the Li Ning Co's three stages of development plan is highly operational, with priorities and priorities, and is a good prescription.

The most important thing at present is to clean up inventory, which is very important for future business development.

Zhang Qingye believes that this development plan is a pragmatic choice for the current situation. On the one hand, Li Ning Co should pay attention to internal management, and on the other hand, we should pay attention to cultural heritage.

The inevitable road to internationalization

In July 5th, Lining said at a news conference that Li Ning Co should focus more on core brands, core businesses and core markets from now on. The core market is to focus on developing the core Chinese market.

"China's strong sports brand is not to internationalize, but to internationalize. Internationalization must be done."

Zhang Qing told reporters that, limited by the current situation of the company, Lining focused mainly on the Chinese market, but the internationalization of the future is inevitable. Foreign brands have already been competing against the global market.

Ma Gang told reporters that at present, Lining has three channel modes in the international market, that is, the direct store mode represented by badminton in Singapore, the authorized agency mode in Europe, and the e-commerce sales mode in the United States.

Ma Gang believes that, limited to capital and experience, in overseas markets, especially in the European and American markets, most enterprises initially choose the mode of authorized agency to sell.

Zhang Qing emphasized that domestic sports products should not be narrowly understood in terms of internationalization. Internationalization is not just about how much money is made in the international market, but rather the internationalization of three aspects: the internationalization of R & D and design, the internationalization of new materials, the internationalization of management mode and the internationalization of brand.

For the future internationalization of Li Ning Co, Zhang Qing believes that Lining must have an accurate positioning, to find out who I am, what my mission is, and what value I can create for consumers.