Lining, Who Bought The LPL Team Heavily, Should Let Sports Consumption Crowd "Want To Buy" At All Times?

With the development of LPL alliance, more and more enterprises have chosen to join LPL, some have bought places at a high price, and some have bought other teams to join. The latest news is that a large group has officially joined LPL, which is a well-known sports brand Lining. This time, Lining also acquired a very familiar team and had a home Snake in Chongqing.

The news comes from the official media "Chongqing Evening News". In January 10th, LPL officially blocked the appearance of the bosses' boss. The representative of Snake was Li Qilin, executive director of the Lining group. He also admitted that he had acquired a plan for Snake acquisition last year, and was very strong. He got the absolute control power of Snake directly. Lining will officially enter the competition industry in 2019.

Li Ning Co is a sporting goods company founded by Olympic champion Lining in 1990 and listed on the main board of Hongkong in June 2004.

As the second largest local sporting goods company, Lining's brand has an overall market share of 5%.

According to the financial report, in the first half of 2018, Lining realized operating income of 4 billion 713 million yuan, an increase of 17.9% over the same period last year. Gross profit reached 2 billion 294 million yuan, an increase of 20.5% over the same period last year, and net profit of 269 million yuan, an increase of 42% over the same period last year.

As of June 30, 2018, Lining's sales point in mainland China (including Lining YOUNG sales point) totaled 6898, with a net increase of 463 in the first half of this year.

Financial reports show that the growth of revenue is mainly attributable to the steady and steady growth of e-commerce channels for many years. Although the growth rate is slowing down, it is still higher than other business channels. The improvement of market awareness of products and the continuous improvement of self run store operation capacity are benefited from the strengthening of dealers' channel operation ability and terminal sales ability.

At the same time, the new business represented by children's clothing is also developing in an orderly way and has gained good market feedback.

In XinDa's securities analyst Li Dan's view, the performance in the first half of 2018 showed that Li Ning Co continued to shut down the loss shops and upgrade inefficient shops, while strengthening sales network coverage, and actively optimize the channel structure has achieved good results.

From the perspective of Li Ning Co, the regional differences of consumer demand are taken as the starting point to segment the high and low level market, and provide consumers with flexible and diverse sports experience and purchase experience according to the attributes of categories, so as to continuously enhance the channel efficiency.

Li Dan introduced that since the announcement of the return of Mr. Lining in 2014, the Li Ning Co has carried out the management and renovation of the shop opening mode and the single store flat effect, and has slowed down the number of shops and improved the efficiency of the shops after identifying the brand's positioning and channel control.

In terms of the number of stores, the company has experienced a gradual expansion of the store in 2015, especially in 2017, where the number of outlets and distributors decreased by 70 and 108 respectively. In terms of single store income growth, Li Ning Co's more effective inventory management and management increased the store's single store income year-on-year. From 2015 to 2017, the single store revenue of distributors' stores increased by -0.6%, 0% and 5.7%, respectively. The growth rate reached 18 in the first half of the year, and the single store income increased by -21%, 0.4% and 11.3% respectively.

At the same time, Li Ning Co has strengthened the R & D and planning of core products (footwear and clothing). The proportion of footwear and clothing has increased from 82% in 2014 to 94% in 2017. It has become the main engine to drive the steady growth of Li Ning Co's main business income.

In addition, while breaking away from its traditional image, Li Ning Co reshaped its brand image in the fashion week of New York in early 2018, not only inviting supermodels to help, but also inviting American fashion designers and new male stars as guests.

In the March 2018 sales of the show and the same paragraph became a burst. The new design elements promoted the unit price of the goods. The price of the fashion show in the fashion week was nearly 4 times the unit price of March as a whole.

On the New York fashion week, Lining's "enlightenment series" clothing successfully entered the vision of young people, and made a big step in the internationalization strategy.

In June 2018, Lining's fashion week in Paris once again aroused widespread concern in the fashion industry.

Li Dan believes that when the millennial generation becomes the main consumer group, the "Z generation" is on the way, the traditional fashion brands will face more challenges, but the brand worship has been gradually weakened. The diversified and personalized products are more in line with the tastes of consumers. The domestic sports brands represented by Li Ning Co are pformed from "affordable" to "want to buy", while in the professional and high quality aspects, the domestic shoes and clothing brands, including Li Ning Co, have actively established links with young consumers, and launched the younger products, taking the fashion culture as the breakthrough point to win over the young consumer groups, upgrading the store image, changing the faces and changing the tide, and buying the young brand rich product line.

In 2017, in order to further enhance the influence of Lining brand, Li Ning Co combines professional sports with fashion, entertainment and leisure. Based on the characteristics of sports, the Li Ning Co made further innovative design to improve the competitiveness of the products.

Lining's brand - born sports DNA lets the group expand its imagination in 2017, creating a more professional and cool product and sports experience for people who love sports and life.

For example, Wade's 6 generation basketball shoes, the first use of the DriveFoam rebound technology jointly developed by German Basf Inc and the eleventh generation basketball shoes, are among the most influential design awards in the world; the "ultra light fourteen generation" running shoes use the big data to be put into precision, according to the effective combination of differentiated innovation advertising crossover and WeChat circle of friends in different groups of people, and at the same time, a lot of important business circles in many cities set off a super light flash shop frenzy, and terminal consumers further zero distance experience.

In the background that China's sports apparel industry is driven by the national fitness, national support, sports and social interaction and other factors to enter the golden period of development, Li Ning Co, as the brand representing the spirit of Chinese sports, will benefit from the vigorous development of the sports industry and continue to grow. The excellent brand gene and brand influence of Lining brand will enhance the core value of the company. Li Dan judged that Li Ning Co's net profit attributable to the parent company in 2018-2020 years will reach 756 million yuan, 936 million yuan and 1 billion 139 million yuan respectively.