Lining's "Internet + Sports Life Experience" Loss Narrowed By 90%

In August 8, 2015, on the day of the 25th anniversary anniversary of the founding of the people's Republic of China,

(China) Sports Goods Co., Ltd. (Li Ning Co, 2331.HK) announced the resumption of the slogan "anything is possible" and gave up the slogan "let change happen" which has been used for 5 years and has spent a lot of money.

At the same time, Li Ning Co also announced that the company's strategic direction will be from sports equipment providers to "

The pformation of sports life experience providers.

Whether or not to buy Li Ning Co products, many Chinese people are Lining.

Still have unique emotions and memories.

What does the return of brand slogans and the "Internet +" pformation mean for Lining? What changes have taken place in the "restart" of Lining?

5 days after the new strategy was announced, in August 13th, Li Ning Co released its interim results as of June 30, 2015.

During the reporting period, the income of Li Ning Co increased by 16% to 3 billion 641 million yuan compared with the same period last year. The loss of equity holders should be narrowed by nearly 95% to 29 million 410 thousand yuan, while the loss for the same period last year was as high as 586 million yuan.

Mr. Lining, the executive chairman and acting chief executive of Lining brand founder and group, said after the announcement of his performance, he is confident that the annual performance in 2015 will return to profitability.

With the help of the Olympic Games, the annual sales volume of Li Ning Co is only one step away from 10 billion yuan in 2010.

The Li Ning Co has released new trademark (Logo), brand slogan (slogan) and brand new remolding plan. The goal is to make Lining brand younger and internationalized, and to go to high-end.

However, since 2011, many internal and external factors have mixed up, resulting in a large backlog of Li Ning Co, layoffs, closes and losses.

The Li Ning Co has ended its rapid growth and plunged into the mire of development. Not only did it fail to become a world-class sports brand from China, such as Nike and Adidas, but also the position of its eldest son.

As of 2014, Li Ning Co has been losing money for 3 consecutive years, with a total loss of 3 billion 100 million yuan.

Today, Li Ning Co finally has "good news".

In fact, it is not only Lining, who has published half a year's reports on several other major domestic sports brands, including

Domestic brands, such as PEAK and 31st degree, have shown an upward trend in revenue.

Many industry insiders say that this is due to the increase in demand for consumer sports, the promotion of national policies and the success of the bid for the Winter Olympic Games and the basketball world cup. The recovery of domestic sports products market is more optimistic, and the rise of sports such as running and cycling will further stimulate the recovery of the market.

Can all sports brands seize this opportunity and fight here?

"In the first year of 2015, Li Ning Co entered a new round of development. It welcomed the brand new life and restarted" everything is possible "brand slogan, marking the strategic change of Li Ning Co from sports equipment providers to" Internet + sports life experience "providers.

Li Ning Co responsible person said.

The official said that based on the new strategy, Li Ning Co will build a digital business platform in products, channels, O2O mode, cross-border cooperation, consumer interaction and the construction of digital business platform.

In fact, this year, before announcing the pformation of "Internet +", Lining once talked about his understanding of "Internet +" and big data on many occasions, especially the possibility of combining Li Ning Co with the Internet.

"The whole industry must break through the bottleneck of homogenization. In this regard, we have found the direction, which is" Internet + ". It gives us a lot of imagination. In the era of" Internet + ", traditional industries are not being subverted, but new upgrading.

In the era of "Internet +", the market has changed rapidly, and the production, trading forms, and lifestyle of people have changed dramatically.

The essence of the concept of "Internet +" is the reconfiguration of resources, supply and demand, and supply efficiency.

Lining said.

In July of this year, Li Ning Co jointly launched two smart running shoes in Beijing.

These two running shoes add chips to the sole and upload data to the bracelet or smart phone. Users can get "professional guidance" and "tailored" services. For Li Ning Co, it can collect runner data, accurately analyze the data provided after user experience and feedback it to the R & D team in time, which can greatly enhance the pertinence of product development.

Li Ning Co responsible person also said that in addition to product exploration, in terms of channels, Li Ning Co is also complying with the new market opportunities brought by the rise of e-commerce channels, integrating e-commerce into the core business of the company, boldly constructing new products, new channels and new ways of operation, creating a new "digital" business mode based on the Internet efficiency and information efficiency on the basis of existing, and creating a new Lining experience in this way of operation.

"The integration of the Internet and traditional industries will generally go through 4 stages: one is the Internet of marketing, and the other is more efficient and precise advertising on the Internet; the two is the channalization of channels, such as the retail channel moving down from the line to the online market; the three is the Internet of products, such as smart phones, Internet TV, smart home, etc." and the four is the Internet operation of the ongoing operation, making the enterprise fully turn to digitalization and networking, "CEO said.

For the Li Ning Co, the first 3 levels have begun to see results, while the highest level of "operation Internet" is yet to be worked hard, and this is also the best solution to Lining's biggest problem at present, which is virtually the biggest pain of all sports brands and even all traditional clothing brands.

In fact, Li Ning Co's embarrassment after the Olympic Games has its own reasons, but it is not an industry case. Even Nike and Adidas have overestimated the "Olympic demand" and caused the stock to be unbearable.

Most sports brands, including apparel retailers, have a product cycle of 6~9 months or even longer.

According to Li Ning Co's first half financial report, its inventory turnover period is 6.9 months, with the target being improved to 6 months.

Under such a long product cycle, companies have to predict what will happen in a few months, and how big the sales volume will be, but this error is enormous, and once the sales are slow, it can only discount the goods, which will damage the brand image and make the new products more difficult to sell, so the stock pressure will increase again, forming a vicious circle.

With the power of the Internet, there are precedents for escaping this vicious circle, such as ZARA, HM, UNIQLO and other fast fashion brands.

Very much like a Internet Co's ZARA with the power of the Internet to make the operation of the enterprise "fast", from design to rack only 12 days, try not to replenish the goods, less money, scarce marketing, not greedy on a single sales volume, terminal sales information timely feedback.

"Fast" enables enterprises to greatly improve market resilience, effectively reduce enterprise's capital occupation, improve product quality, reduce production costs and reduce inventory pressure.

Can the Internet enable Lining to "get up" quickly and gain new vitality and vitality under the "Internet +", hoping that "everything is possible".