Shoe Enterprise Lining Can Rely On "Integrate 500 Stores" To Get Rid Of Difficulties?

December 31st in Baidu search column, enter "

As the start of the 1990 domestic sportswear

Lining was hit by a sales crisis?

It is reported that, in the second quarter of fiscal year 2011, the order of Lining products will be over. The total value of Lining's orders is equivalent to that of the same period in 2010. The average retail price of clothing products and shoes has risen by more than 8%, but the number of orders has decreased by more than 7% and 8% respectively.

In addition, Li Ning Co also released information on the integration of distribution channels in 2011, when some undesirable single business shops will be closed.

Nearly 5 trading days after the announcement, Lining's share price (Hongkong listed) has fallen by 20%.

Some media have estimated the situation of Lining's recent rectification: according to the total number of stores that Lining now has over 7000, and the decline in the order volume, the number of stores may reach 500-600.

Notice: integration is not a closed shop.

In response to the industry's doubts, Lining announced through public relations companies that "integration and close shop are two different concepts".

The announcement said: "the group is carrying out the reform of the distribution system. One of the important measures is to integrate about 500-600 low efficiency distributors. This measure and closing shop are two different concepts.

As of June 30, 2010, Lining had 129 distributors and more than 2000 distributors.

Most distributors are small in scale, and they manage two stores on average.

In fact, more than 1700 distributors now operate only 1 stores.

Most of the distributors' business performance and operating profit margins are not ideal, and they lack the scale effect brought by the scale of the stores.

The integration of inefficient distributors is the acquisition of low efficiency distributors by allowing more efficient and larger distributors or distributors who want further development.

At the same time, the group will encourage large dealers to increase the number of direct outlets. "

Lining sells in Hangzhou

Reporters learned that there are Lining counters in two popular shopping malls in Hangzhou.

But the manager of one of the shopping malls told reporters: "Lining has a general sales volume in us, so its business area has been reduced a lot during the last counter adjustment process."

Many consumers told reporters: "indeed, these two years have paid little attention to the brand of Lining, which is well aware of the brand, but there is still a certain gap between the product and the international brand."

Insiders commented: "in 1998, when Lining had almost no growth in sales, he encountered the bottleneck of his career development and finally crossed the difficulty.

In 2005, Lining's "everything is possible" series of advertisements let Lining create a new marketing situation in the world of sporting goods.

This Lining's integration is not sure whether we can bring another brand new Lining to consumers.