What Does Lining Rely On To Return To The Golden Age?

The tide of national tide is breaking through. "Tmall China Japan" let a lot of domestic brands "reborn". In January 2018, Tmall announced that it will join hands with CFDA, the exclusive strategic partner of China Association of designers, to launch Tmall China day in New York fashion week in 2018.

At that time, Tmall will take the excellent Chinese designer brand to the New York fair and show its elegant demeanor. Lining ranks among them. February 7, 2018, New York, where the story begins. The theme of Lining's fashion show is "understanding Tao". The combination of China's Lining and China red is amazing, and it's amazing that the original Chinese dress can still be so colorful.

Lining, who was red in World War I, became the representative of "new country tide". A beautiful turn is also one of the signs of Lining's rise again. In the recently released 2019 China Daily, Lining's turnover increased by 33% in the first half of the year to 6 billion 255 million yuan, while net profit increased by 196% over the same period last year, reaching 795 million yuan, and sales and profits showed strong recovery.

Lining, who is now in the limelight, is a declining trend around 2012. Behind the Li Ning Co, where Gao Guang and turning everything is possible, is a miracle figure. Lining, known as China's first generation of gymnastic princes, is the 14 world champion and 106 gold medals, creating the myth of World Gymnastics history.

No one would have thought that the retired gymnast succeeded in becoming a merchant sea giant. Around 1990, Guangdong Sanshui, former Jianlibao chairman Li Jingwei joined hands with Lining and founded the "Lining" sports brand. In 1996, Lining completely separated from Jianlibao. After the Li Ning Co, its performance has been rising steadily. 2003 revenue exceeded 1 billion mark.

In 2004, Li Ning Co successfully landed on the Hong Kong stock market and became the first mainland sporting goods company to list in Hong Kong. Its scenery was no more than two. 2008 is another highlight of Lining. Under the spotlight, Lining, the founder of the soaring flight in the sky, held the torch of Xiangyun, and lit the Olympic flame after a round of circles. A great historic mission was completed by Lining.

"This is probably the most successful free advertisement in the history of Olympic Games." The Wall Street Journal said so. In 2008, the number of stores in the company was as high as 5000, and exceeded 8000 in 2011. The Li Ning Co, which originally expected to exceed 1 in 2013, has fallen into an unprecedented predicament.

In 2011, the net profit of the company declined sharply, down 73.38% from the previous year, to 245 million yuan. Faced with the rapid drop in performance, Li Ning Co said, "the development trend of some external factors is in line with our group's early judgement, but the speed is beyond our group's expectations."

Over the next few years, the company has been bogged down in losses. In 2012 -2014, net profit after deducting non profits of Li Ning Co was 2 billion 143 million yuan, 527 million yuan and 807 million yuan respectively.

Inventory turnover still remains high.

In 2012, Anta sports overcame Lining and became the first brand of sports in China. In July 2012, Lining launched a comprehensive change plan.

Channel, product and retail operation capacity. The three carriages pushed the company back into the growth track. The excessive expansion of the sporting goods industry has accumulated a large amount of inventory in the sales channel, and promoting the improvement of the channel structure is one of the key points of the reform.

The company changed its business mode from wholesale to direct business mode, greatly reducing the number of franchisees and increasing the number of direct outlets.

The performance of e-commerce channels is more remarkable.

In 2014 -2018, its proportion of revenue increased year by year, which was 4.9%, 8.6%, 14.3%, 18.8% and 21.1% respectively. In 2018, the "double eleven" Shopping Festival, Tmall Lining official flagship store set a new sales high of 360 million yuan, up 67.44% over the same period.

In terms of retail operation, the company decided to link product development and retail operation capability with the Internet driven business environment, and cooperate with more innovative technology enterprises to create more cross-border business opportunities.

In terms of products, the company gradually abandoned business overlapped with casual wear and focused its main businesses on five core sports categories: basketball, running, badminton, training and sports.

These five categories have different categories of value orientation, marketing strategies and means, but generally speaking, sponsoring and hosting events, signing national teams and popular athletes is an important strategy for Lining to expand its core brand awareness.

In basketball, Lining built a pyramid system. The top is mainly the Wade road series. In 2012, Lining signed NBA Wade, and then the basketball culture built around Wade was impressive. The central part was mainly in the CBA League layout; the tower base was mainly for grass root basketball marketing, such as the first world war famous summer league, Lining 3+1 winter Basketball League and so on.

In terms of running products, Lining organized the first form of road race in China. It also integrated with technology, and created the Wukong series by using Lining Re-fit technology.

In badminton products, Lining developed a racket technology platform to focus on innovation and research and development of all products. Besides signing the Chinese national badminton team in 2009, Lining also signed Australia, Singapore and other national teams, as well as some popular players.

In order to get the attention of young consumers, Lining also had a layout. In 2015, Lining played a fashionable cross-border marketing. In those days, the company sponsored the RunWade fashion activities sponsored by Wade. In the same year, he also sponsored the annual art feast of Miami, Art Basel. In 2016, the company continued to cooperate with Marvel Studios to launch Galaxy guards 2 and Marvel classic parcels.

In addition, the company also has deep cooperation with the market trend media. Lining, who is getting younger and younger, will catch the eye of young people more and more. Quickly follow up the entertainment hot spots, sign and sponsor the entertainment resources, use the opinion leaders to endorse the products, and excavate the fans economy.

Behind many efforts, Lining is catching up with a "good weather". In the wave of consumption upgrading, the consumption concept of the new generation of consumers not only stays at the material level, but also rises to spiritual identity. With the growing self-confidence of popular culture, Chao Chao Shan is highly sought after by young consumers.

Lining accurately grasped this social phenomenon. After many efforts, the clouds finally disappeared. The company's net profit began to rise sharply, and the turnover rate of inventory also improved.

Today's exploding red looks like an accident, but in fact it is inevitable. But in the face of international brands such as ADI, Nike and other market shocks, Lining's future is still full of challenges. Author: Xu Lin Yan