Li Ning brand, has been regarded as China's sports industry, the rise of the symbol, but now in an awkward position. Holdings by investment banks, earnings stagnated, a series of price increases to survive ... ... Li Ning seems to have been lost in the change of its own.
Embarrassing situation
On March 11 and 12, Li Ning, Zhang Zhiyong, CEO and CFO while Chong Yik Kee equity holdings of the company, involving an amount of 1.219 million yuan. Widely believed Li Ning executives holdings are forced, the purpose is to deal with investment bank holdings. According to the Stock Exchange share information, JP Morgan Chase and Commonwealth Bank of Australia had a total reduction of Li Ning shares involving capital 206,700,000 yuan.
Been the subject of investment banks favored by Li Ning shares tragically abandoned, and the company's situation is not unrelated. 7th of this month, said Li Ning, the company issued a profit warning, according to the current order prices, 2011 overall sales will be down about 5%. Meanwhile, as the reform to increase the channel and speed up inventory liquidation rate, estimated this year's first half net profit margin from 12.9 percent last year to 6% -7%. The news came out, along with its share price fell 15.77 percent, its lowest level since record 27 months. As early as in May this year, former COO Guo Jianxin and some key employees have left Li Ning Company.
Zhang Zhiyong, of course, will not see these figures and personnel changes in the profound meaning behind the complex. Before Nike, Adidas and other giants, after Anta, 361 degree pursuers, Li Ning has long been in this "two blocked" the tangle.
"As a company CEO, the company I am sure most clearly the development of the next six to seven months, but this critical stage in the moment, I am willing to assume this responsibility." Zhang Zhiyong, in media interviews after the definition of Li Ning, the company's current situation the "transformation of the most critical juncture."
The pains of transition
July 7, after the report was released a profit warning, as the Italian founder of the Li-Ning from Hong Kong sent a "letter to employees." He stressed in the letter, said: "The board and management to take the initiative to change the target to reach a consensus, and fully support the CEO and management changes to achieve the target set by the implementation of the plan."
Li Ning brand change a long time, in 2005, the brand Li Ning to hire a professional body to investigate the status quo. Finding is that the consumer population between the ages of 35-45 accounted for 50% of consumers. In order to win young consumers, expanding consumer groups, the third quarter of last year, Li Ning replacement slogan, logo, and re-positioning, consumer groups will be locked for "90."
Li Ning, China's sports represents a period of glory, as has been sought after as a national hero. But for the "90", Li Ning, the peak time too far away from them. Marketing experts Luyi Qi pointed out that Li Ning's brand as a sports star role for the "90" is minimal. Li Ning brand and not so "90" to form the brand fit point. In addition, some experts believe that Li Ning's price positioning is not suitable for "90." As we all know, the price of the product than Li Ning, Nike, Adidas and other foreign brands was slightly lower, but higher than the Anta, special steps such as domestic brands. This observation of human Wang Zhiqiang independent financial analysis, the majority of the "90" consumer groups do not have stable source of income but the pursuit of high-end fashion. Li Ning, who either can not afford, or simply choose to Adidas, Nike and other foreign brands.
Li Ning is now placed in front of the problem is how to get "90" consumer group identity. Brand analyst Hui Wan pointed out that the light is useless shouting empty slogans. Li Ning brand must increase and "90" degree of integration and point of contact. By sponsoring a number of "90" increase in public welfare activities, "90" its acceptance, so that it can be accepted by younger groups.
Swing position
Inception, Li Ning's position is a professional sports clothing brand, but it makes some of today's Li Ning, unpredictable, constantly swinging between the professional and stylish. This image from Li Ning's voice can be seen. O'Neill, lindane, Wu Min Xia, Powell, Yelena Isinbayeva, the Chinese badminton team, the Chinese diving team, in March this year, Li Ning has signed Lin Chi-ling as its new spokesperson. Li Ning, appeared to be very greedy, not only to exercise the full range of products involved, but also to create their own like a fashion brand.
The result is that, if asked what category of Li Ning's most prominent sports products, the answer is no. Wang Zhiqiang that the Li Ning brand what route to go, what is fashionable or professional, is not particularly clear. Li Ning, the spokesperson can not be selected to convey a clear appeal to consumers. The image of international brand giants Nike spokesman lot, but relatively concentrated in basketball, Nike basketball equipment, as a professional will convey to the consumer.
Lu Yiqi also pointed out that in the field of marketing, a brand that is generally caught, then an infinite extension, which is the brand's core competitiveness. Brand building must not demand perfection, must be willing, there will be something to care. "Li Ning brand if they want to expand consumer groups can develop sub-brands, so that sub-brands in a category on the outstanding performance, while the Li Ning brand must be designed, in the end is a fashion or sports, to make it clear brand positioning, or not conducive to brand development. "
Born in 1963, Li Ning, China's sports heroes are close to "known fate" and his "Li Ning" is also full of anxiety for their own destiny.
Li Ning had rhetoric: do not do in China Nike, Li Ning, the world to do. Noble ones, of course admirable, but the first success of the "China's Li Ning" is the top priority.
Li Ning obviously can not expect every year Beijing Olympic Games
2008, to benefit from the "Bird's Nest" over "Lingboweibu" huge celebrity, Li Ning year net profit up 52%; 2009 growth slowed to 31%; in 2010 this figure dropped to 17%; to 2011 , Li Ning is even more rarely good news. Thus, "'Big Brother' positions are," "unprecedented difficulties", "is 'Fujian Department of' Beyond" ... sing the air more and more assessment of the prospects Li Ning.
As a brand, Li Ning has just twenties, face the problem of mid-life crisis. He would like steed leap, do young people, "Li Ning", has not wanted stumbled into "70", "80" the most familiar stranger.
Li Ning Company established in 1990, almost "80" counterparts, it is also "80" hold up Li Ning's pot of gold. For the high school had never been seen is "80" children, Nike, Adidas is still significant luxury, Anta, special steps and unknown. Li Ning may not be the only option, but it is the most appropriate choice. In fact, Li Ning has a good start, because embedded in the memories of youth in bloom, is a brand of fortune.
In this "lucky" under the aegis of fingertips for 20 years, Li Ning, a company has been successful, but still not as a brand with Nike, Adidas comparable. Because, Li Ning has not found its own personality, just like the best Nike basketball shoes, Adidas soccer shoes best, what can be Li Ning, the best people today. Li Ning in the end is the fashion, or a professional? In the end is a high-end, or universal?
Everyone knows that Li Ning need to change, including Li Ning himself, the brand needs a substantial upgrade, make the brand profitable, rather than just making profits earned. But Li Ning's change, we want more than "bold." "90 Li Ning", a new position, bid farewell to look at the birth of the "70" crossed with its growth, "80", wholeheartedly toward the "90." Consumer groups have now become the backbone of the abandoned generation. "80" will boycott, and "90" mean? They also look ignorant Li Ning.
Adidas may be able to steal the division, product line layer, both the "three stripes" and also "Clover." However, the Li Ning himself to "90", but say that it is a hurtful defeat strokes. Turn too fast, so staggering. And this staggering, in a low-end market is "made in Jinjiang (sports brand manufacturers concentrated)" to lose ground, high-end market is dominated by foreign giants of the industry firmly in reality, even more deadly. A deep-rooted "local best sports brand", how to break through, obviously not to please "90" so simple.
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