Lining Crisis: Is Everything Possible?

At 12 o'clock in July 12th, Guo Jie, chairman of China Investment Group Holdings Limited, released micro-blog's "Lining crisis? Lining's biggest crisis at present: top management turnover, brand positioning swing, sales decline, stock price drop, morale low." Clothing enterprise The Li Ning Co crisis is obviously not only concerned by the media, but also a topic of interest in the micro-blog world. So, the most concern of all walks of life Lining crisis What aspects?

　 It's a pain to go to stock.

　　 Stock It is Lining's crisis.

In July 10th, the Li Ning Co announced the latest rectification plan. The first stage of the measure is to clean up the stock of the channel. "Only when the inventory is cleared can we talk about other plans, otherwise everything is empty talk." At present, Lining is facing 1 billion 133 million yuan inventory pressure, and the market did give a lot of reactions. The official micro-blog of Tianhe department store announced that Lining bought a total of 498 discounts of 100.

Jin Zhenjun, executive vice president of new Lining, stressed that inventory will return to normal in the next 6 to 12 months.

Treasure group buying network official micro also played Lining's discount activities. Fuxing gate Baisheng official micro also released, Lining merchandise thirty percent off discount. Cade MALL Cui Wei Road Official micro also released, the mall's little Lining children's wear 65% off.

In June 12th, Lining issued an early-warning announcement that the total order value of Lining brand products dropped in the fourth quarter of 2012. Shoes products Orders declined by double digits, while orders for service products fell by more than 20%. The amount of new product orders per year is higher than that of last year. According to Lining, according to the results of the order, management expects sales growth in 2012 to be negative compared with 2011. It seems that Lining himself knows that inventory will be a top priority.

The position is very headache.

Apart from going to stock is a big problem, Lining's new positioning is also very headache. Lining, who cut off 90 former consumers, has caused great controversy over the brand positioning.

Netizens know that in their micro-blog, Li Ning Co only needs to reflect on whether the logical relationship between customer positioning, product strategy and brand value appeal is clear. Coincidentally, the netizen electric seeding machine also pointed out in micro-blog that Lining must reposition. More netizens Pomegranate Body no color Phoenix pointed out that if the price is similar to ADI Nike, some people will choose the latter.

Qiu Jing, chief researcher of China Samsung Economic Research Institute, pointed out that Lining's problem lies in imitating the light asset model and encountering bottlenecks, and the brand positioning is not clear.

Lining is a typical enterprise that pursues light assets strategy, away from channel production, and enterprises like Anta carry out vertically integrated business mode, control their own factories and own their own channels. In this way, under the environment of rising production costs, the control of production and the response to the market will be more flexible.

At present, Lining has no advantage over his competitors. According to industry analysis, Lining is currently a relatively strong professional field only badminton, and the base of the larger running shoes, three balls and other fields, Lining is still a weak brand. The major sports brands in China adopt different positioning strategies. Nike and Adidas are facing such a competitive situation. Under the premise of domestic brands' full education for consumers in the two or three line market, they are ready to launch mid-range price products, which will have a greater impact on Lining, Anta and other brands. In contrast, Lining's position is awkward, hovering between the international high-end and domestic low-end brands, and the strategic positioning has been wavering for a long time. Only by constantly looking for specialized market segments can Lining find opportunities.

　 Is everything possible?

Lining's 2011 Annual report shows that last year, the company's operating income was about 8 billion 929 million yuan, down 5.80% compared to the same period last year. Net profit was 385 million 800 thousand yuan, down 65% compared to the same period last year. In contrast, the net profits of Anta, XTEP, 361O and PEAK are equal to 1 billion 730 million yuan, 966 million yuan, 1 billion 133 million yuan and 780 million yuan, respectively. Lining is equal to Anta in terms of revenue, ranking first, but the net profit is far lower than other enterprises, which has been hit by the competition among local five strong competitors.

In July 10th, Lining officially confirmed the departure of CEO Zhang Zhiyong. Lining repeatedly stressed to the media that the announcement is a consistent decision between Zhang Zhiyong himself and the board of directors. In the face of the media's verification, although Lining denied Zhang Zhiyong's claim that he had been reckoning after the fall because of his strategic mistakes, it did not cover up Zhang Zhiyong's previous mistakes. The industry generally believed that Zhang Zhiyong was making a mistake for himself.

Zhan Jia, the founder of the new form of social media marketing organization, shouted on his official micro scale: "what has Lining changed?" some netizens commented. "From changing slogans, Lining will continue to languish."