The Worst Days Of Lining'S Shoes And Clothes Were The Past.

Lining, who has passed the fatality year, is leading his 23 year old company to adapt to the unprecedented unfamiliar environment and meet an unknown challenge in the future.

After the return, Lining has been on the cusp of a severe test.

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< p > < strong > facing challenge > /strong > /p >

The "P" 2008 Beijing Olympic Games "flying sky ignition" triggered the market's fanatical pursuit of Lining's a href= "//www.sjfzxm.com/news/index_f.asp" > shoes and clothes "/a". Since then, Li Ning Co has begun to reach the peak.

In 2008, Lining's sales increased by 56% to 6 billion 700 million. After two years, Lining's volume continued to soar to 9 billion 500 million and up 42%.

In 2008, the number of Lining stores was only 6245. By 2011, this number had increased to 8255, or more than 32%.

In a short span of three years, Lining's volume increased sharply, and the annual compound growth was over 30%. However, such rapid expansion has hidden dangers for the huge losses in the future.

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The failure of P > brand positioning is Lining's first fatal wound.

In 2010, Zhang Zhiyong, chief executive of the company's senior citizen, launched an unprecedented brand remolding campaign to cater to young consumers.

Unexpectedly, Lining made fatal mistakes in the specific tactics of brand communication. For example, advocating "Lining after 90", changing new slogans and brand LOGO, and so on, "70 after 80" familiar products became overnight goods overnight.

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In this year, p a began to collectively spend the winter in the "//www.sjfzxm.com/news/index_c.asp href=" sports goods industry.

Data show that in 2012, Lining, Anta, 31st, XTEP and PEAK 5 domestic sports brand inventory totaled 3 billion yuan.

At the same time, the local sports brands, originally borrowed from the Olympic marketing "Dongfeng", have failed to recover their performance and have been in Waterloo.

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< p > house leakage is a continuous rain.

The brand reconstruction has suffered major failures, the sequelae have been highlighted, and it has caught up with the long-standing dilatation of the sports brand for many years, resulting in a big outbreak of the long-standing malpractice. Lining, who is under double attack, is facing the biggest crisis since its establishment.

Lining had to help himself to survive.

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< p > 5 years later, when looking back at the peak, I find that I am at the bottom of the valley.

In the past introspection, Lining realized that the strategic direction of the enterprise was wrong.

Thus, with the resignation of Zhang Zhiyong, chief executive officer, Lining joined hands with TPG, an executive vice chairman and CEO of the investment company.

Lining, who has returned to the mountains, has formulated the three step strategy and reestablished the three major focuses of "core brand, core business and core market". He also led a series of strategic initiatives: introducing strategic investors, launching a comprehensive change plan for channels, brands and products, and formulating a "channel revival plan".

At the same time, despite the financial pressure of huge losses, Lining still demonstrated his strong and enterprising side in marketing. He formally signed NBA basketball superstar Dewayne Wade to buy the sponsorship of CBA League for five years at a price of 2 billion yuan.

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< p > < strong > profound change < /strong > < /p >

< p > Lining's 2012 results show that the company's annual revenue is 6 billion 739 million yuan, down 24.5% from the same period last year, and net profit loss is 1 billion 979 million yuan, closing 1821 stores.

This is Lining's first performance loss since it was launched in 2004.

It is worth mentioning that in the past two years, the changes led by Lining and his team are changing the company profoundly from cleaning up inventory and improving supply chain.

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< p > reporter learned from Li Ning Co that since 2013, Lining has focused on cleaning up inventory, and reduced pressure on retail outlets, which has improved the financial stability of dealers. At the same time, in the first half of the year, Lining has made a good performance in adjusting the scale of business, optimizing the store network and upgrading sales of new products, improving cash flow and optimizing capital structure.

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< p > over the past two years, the domestic sporting goods industry has been tired by heavy inventories. One of the crux of the problem lies in the wholesale sales mode of extensive operation.

The whole industry is facing the vicious circle of "brand + wholesale" mode. The company level is not concerned about the change of the retail side.

Lining told reporters that since the first half of 2013, more than 90% of the group's distributors have signed a channel revival plan agreement, and the average monthly turnover of inventory has dropped to 7 months from the peak of more than 9 months in 2012.

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< p >, as the first fully pformed company, Lining began to bid farewell to the traditional form of ordering, featuring a retail mode featuring "guided order, quick replenishment plus quick response", which effectively improved the dealer's order guidance and goods arrangement.

At the same time, Lining upgraded the enterprise planning and market data analysis system, based on the introduction of the rapid reaction product line and the best SKU combination product.

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< p > take the "quick response" product as an example. In advance, only a small amount of paging is done, and the market reaction is tested in about two weeks. The sales volume is monitored at any time. Once the product is sold well, the mass production is rapidly organized. If sales are not good, the production will be reduced or even suspended.

"Because the market response is very small, the selling rate of products is very high.

This supply mode of < a href= "//www.sjfzxm.com/news/index_cj.asp" > profitability < /a > is worth looking forward to.

Lining official told reporters.

It is understood that in 2013, sales of "quick response" product line is expected to account for 10% of business revenue.

Deng Hongbing, the chief supply chain officer who led the Li Ning Co's supply chain pformation, once said: "once the IT information system is completed, the supply chain of Lining will regenerate and boost the company to return to its peak in a short time."

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< p > after a series of actions, Lining's strategic adjustment after he launched his horse has achieved initial success.

Lining's 2013 first half financial report showed that the revenue was 2 billion 906 million yuan, down 24.6% from the same period last year, and the net loss in the first half was 184 million yuan, compared with the huge deficit of 1 billion 980 million in 2012. Lining has realized 1 billion 800 million yuan in the first half of 2013.

Li Ning Co said that the most difficult period has passed.

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