Compared To Anta, XTEP, PEAK And Lining, What'S The Matter With Lining?

In 2011, Lining's performance was poor, and for the first time in ten years, he declined in sales and operating profits.

In 2011,

The company's operating income was about 8 billion 929 million yuan, down 5.8% compared with the same period last year, and net profit was 386 million yuan, down 65% compared with the same period last year.

Compared with rivals such as Anta, XTEP, 361 degree and PEAK, Lining's profit margins are at the bottom.

In addition, the lack of orders, excessive inventory, large number of executives leaving, and low management efficiency also troubled Lining.

So, what's wrong with Lining?

First, the location is unclear.

First, the location of consumers is unclear.

In recent years, Lining has been committed to the younger generation of products, and put forward the concept of "post-90s Lining" in the strategic adjustment in 2010. However, Lining, who has been established for more than 20 years, has a consumer group spanning many age groups. It emphasizes too much on the younger generation of products, which leads to the loss of old customers and the lack of new customers. Two, it is unclear between the international first-class brands and local brands.

At the beginning of its founding, Lining characterized the "oriental characteristics" and "sports leisure" as a way to avoid Adidas and

The high-end route, take the two or three line city as the main market, take the middle end route.

With the rapid development, Lining gradually abandoned eastern elements in 2005 and 2006, especially when 2009's revenue exceeded Adidas's first second in the industry. Lining began to raise prices substantially and take the route of specialization and high-end.

In 2010, Lining increased the price of products including clothing and shoes for three times, with a view to narrowing the gap with Nike.

However, compared with Nike's fashion personality and Adidas's professional, the connotation of Lining's brand is not obvious. Simply "high-end price" is not recognized by consumers.

Secondly, decentralized management.

In addition to the main brand "Lining", the company also has "red double happiness", "happy road", "Ai Gao", "Kaisheng", "new movement" and other sub brands.

Multi brand operation dispersed resources, which made Lining lose more than others. Besides Lining brand, other brands did not perform well. In 2011, Lining's brand contributed 91.4% of its revenue, and lotto lost for a long time. The low end new business was terminated at the end of 2011 in early 2012, and the shoes and clothing plan of red double happiness was also terminated.

Again, the channel is squeezed.

Because the first tier market is mainly occupied by Adidas and Nike, Lining has limited space. In the two or three line market, Lining is also facing the extrusion of domestic brands such as Nike and other international brands and Anta.

Lining, who is in the competition with the tiger behind the wolf, is also facing the dilemma of deteriorating relations with dealers.

In 2008, due to

Misjudgement led to the fact that many dealers could not clear up stockpiles in time. Lining did not support distributors in inventory problems, causing some differences among dealers.

At the end of 2010, Lining integrated the channel and shut down 500-600 stores with poor performance. The storm of closing shop also damaged the interests of some dealers and worsened the relationship with distributors.

Finally, the management efficiency is low.

With the rapid development of Lining, Lining also suffered from big business illness.

With the running in of the airborne troops and enterprises, the high level of manpower and communication cost brought about by the excessive levels, the overlapping of functions and the unclear core business, the problems appeared one after another, which greatly affected the management efficiency of the company.

In terms of staff and marketing costs, Li Ning Co ranks among the leading peers.

So how can Lining get rid of the existing troubles?

Lining, the founder, put forward the strategy of "returning to sports", that is, focusing on the core sports products such as Lining brand, basketball and Chinese sports market.

And formulated a "three step" plan: first, 6 to 12 months in the next 6 to 12 months, efforts to solve inventory, cost, organizational execution capabilities, channels, focus on core business and improve marketing efficiency and other short-term issues; two is from next year to the next year, mainly to improve supply chain management, marketing and product planning mode, to consolidate the company's position in the mainland market; three is the next 2-4 years, to start business model pformation, while meeting the consumer's brand experience, at the same time, improve retail efficiency and ROI.

Specifically, in the current situation of slowing down the overall growth of the domestic sporting goods industry and the collective "large inventory" situation, Lining's urgent task is to shrink the brand front and focus on solving the inventory problem.

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First, return to the oriental characteristics and focus on the operation of the "Lining" brand.

Facts have proved that the internationalization strategy of giving up the eastern elements has made Lining lose the money. Lining should return to the essence of his "oriental characteristics" and rebuild his own brand connotation.

Concentrate on the operation of Lining brand and develop different products in the "Lining" brand for high, medium and low end markets to achieve differentiated operation and consolidate market position.

Two is to optimize the channel construction, and strive to digest inventory.

Build a "big channel" system integrating entity stores and network sales, formulate different product strategies on line and line, moderate profit dealers, and achieve bundling with distributors. Learn from Adidas's experience in Solving Inventory crisis, allow dealers to open discount stores, offer different discounts for inventory products according to the time of library entry, digest inventory as early as possible, and ease financial pressure.

The three is to define the target group.

We must adhere to the strategy of youth, but we need to make adjustments.

The rapid development of the Li Ning Co is related to the popularity of Lining, the gymnast prince. However, as the "Lining era" goes far away, the consumers of the Yao Ming generation and Jeremy Lin generation are no longer familiar with Lining, and at the same time, they are also pursuing individualization and fashion.

It should be said that the younger generation is the future direction of Lining's products, but the younger generation is not limited to specific generations.

On the basis of meeting the needs of existing consumers, Lining should appropriately add young, fashionable and dynamic elements to enrich the product connotation and attract more young consumers.

Lining's return and the adjustment of CEO are useful explorations made by the company for the low efficiency of internal management. We expect Lining to get out of difficulties as soon as possible.