Li Ning Co: Anything Is Possible To Change What Is Happening.

< p > Lining (franchised store) has a huge deficit of nearly 2 billion a year and still signs the star player.

Media commentary: the local sports brand needs to clarify its position after the "cold winter".

< /p >

< p > it is reported that from the "everything is possible" to "change is happening", such advertising language changes show the expectations and expectations of Lining's brand.

But now, change is really happening, but it is not getting better, but getting worse.

Li Ning Co's annual report released on Tuesday showed that the company's revenue in 2012 dropped by 24.5% compared with the previous year, and its loss was nearly 2 billion yuan, which is the first time that Lining has seen a substantial annual loss in eight years.

Back in 2011, two years ago, Lining also made a profit of 386 million yuan.

< /p >

In addition to P, Li Ning Co has closed more than 1800 stores, with an average of 5 outlets a day.

These data show that Lining is in a difficult position today, or even dangerous.

However, at a time when huge losses and large numbers of stores were shut down, Lining was wasting money.

According to the latest report, Li Ning Co has dug up NBA star Wade from the rival Nike (exclusive store) for spokesperson at a price of about 10 US dollars for about 100 million years.

When Nike and other famous a href= "//www.sjfzxm.com/pioneer/" > sports brand < /a >, because of the disappointing income and the reduction of celebrity endorsement expenses, Lining offered a big price for first-class athletes.

< /p >

< p > China's < a href= "//www.sjfzxm.com/news/index_c.asp" > sports goods < /a > enterprises are facing difficulties, and income decline is a common fact. Lining, the star enterprise in this industry, is also suffering in the winter.

But Liu Xiaowu, a commentator and financial writer of the economic voice, believes that this move can be seen as a fierce move by Lining.

Liu Xiaowu said, from the Li Ning Co itself, it mainly does basketball, badminton and running three categories, the brand presents the Pyramid type - the bottom is the Super League, the central part is CBA, the brand Pyramid type top is less than one celebrity endorsement, now invites Wade to make the brand endorsement, actually consummate the entire Lining brand layout.

< /p >

< p > Liu Xiaowu believes that Lining's current performance fluctuation is caused by many reasons: first, the problem of brand positioning; second, the problem of channel construction, and the third is the problem of technological innovation.

But Liu Xiaowu pointed out that Li Ning Co's performance decline is not just a single company's problem, but a whole industry trend.

Looking at the 6 local sporting goods brands that have released the 2012 annual report, all of them have shown a downward trend in net profit, except for a small profit.

Profits decline, inventory backlog, and shops become common problems in the industry.

< /p >

< p > Liu Xiaowu said that in the current situation, the sporting goods industry's short-term prospects are hard to be optimistic.

At present, China's sports "a href=" //www.sjfzxm.com/news/index_z.asp "clothing" /a "brand is in the process of shaking bottom finding, and it is still necessary to observe whether or not to shake the bottom and rebound quickly.

As far as Li Ning Co is concerned, Liu Xiaowu believes that, as a first-class sports brand in China, Lining and international Nike and Adidas companies, as well as domestic second-line, three line brands, in fact, brand differentiation has not been revealed, and has not driven its entire market sales, resulting in the decline of Lining's current performance.

< /p >

< p > some people say that Lining, who was once the leader of the industry, has the biggest problem of unclear positioning, not high or low, resulting in a far cry from his previous goal, the great international brand.

Nowadays, China's sporting goods industry is expanding from a crazy expansion to the overall downturn. It is also a problem that many people are thinking about.

Liu Xiaowu said that as far as sports brands are concerned, international brands have been pressing Chinese brands. Chinese brands used to win by price advantage. But now the cost is rising and the market is falling down. Facing the future needs of independent brands, at the same time, based on independent innovation and improving the competitiveness of enterprises through subdividing consumer groups, we can achieve greater development.

< /p >