1 thought on “Li Ning Industry Dynamic Analysis? What is the current situation?”
Paul
Li Ning Industry? The sportswear industry? Or Li Ning Company? (If you are useful, please adopt it. Your admission is my biggest motivation, thank you!) . The sportswear industry: Please refer to the “Analysis Report of the Market Prospective and Investment Strategic Planning of the Chinese Sports Service Industry in China”
. Li Ning Company: Li Ning Company has been listed in 2004, and its performance has risen all the way. In 2009, the mainland sales exceeded Adidas. Li Ning’s performance once occupied the forefront of the Chinese sports goods industry. However, in recent years, the strong development of other sports brands has continued to slump in internal and external markets. Li Ning’s performance has continued to decline and is suffering a crisis of survival. In addition, Li Ning’s development strategy and lack of brand spirit are also the cause of Li Ning. At present, Li Ning must recognize the root cause of the problem and find the road of development. In 2004, before the opening of the Athens Olympics, Li Ning’s sports brand went to Hong Kong to go public. Li Ning pushed Olympic marketing to its peak at the 2008 Beijing Olympics. The following year, sales in the Mainland market exceeded Adidas. Li Ning’s performance once occupied the forefront of the Chinese sports goods industry. However, the 2011 annual report showed that Li Ning’s annual operating income was 8.931 billion yuan, a year -on -year decrease of 5.84%, and net profit was 386 million yuan, a year -on -year decrease of 65.19%. The continuous rising performance has begun to decline over the years. In the first half of 2012, sales revenue achieved 3.88 billion yuan, a year -on -year decrease of 9.54%, and net profit was 44 million yuan, a year -on -year drop of 84.92%. By 2013, the net loss had reached 392 million yuan. Both sales revenue and net profit have both declined. Li Ning, who has occurred, is not an example. The domestic local sports brand market has shrunk, the performance has fallen sharply, and the prospects are worrying. This article analyzes the status quo of Li Ning Company and puts forward corresponding opinions and suggestions on the problem. . The main problem of Li Ning Company The core value of Li Ning brand is not very clear in the minds of consumers, and the existing consumer group has a brand positioning of Li Ning brand with the brand positioning of Li Ning Company and the brand positioning of Li Ning Company. Not very close, some brand attributes that consumers recognize are exactly what Li Ning company wants to weaken to achieve its internationalization strategy. (1) market issues 1. The brand positioning is unclear. According to a survey made by Gallop Consulting Co., Ltd., friendly and national honor is Li Ning’s most prominent brand personality. Not the young, fashionable and internationalized by Li Ning’s hard work. Li Ning’s goal is “high -end”, “professional”, “internationalization”. The positioning of Li Ning is “mid -to -high -end”, “primary”, and “national brand”. At the same time, consumers show the positioning of “friendly”, “honor”, and “national brand”. In addition, the attribute of “nation” is weakened by Li Ning because of the “internationalization” of Li Ning’s desire. 2. The style is inconsistent with the brand image. Due to the unclear brand positioning, Li Ning Company has the problem of inconsistent information and incompetence in the choice of product design, sponsorship activities, image and product advertising, store opening style, and even image spokesperson. The brand image is inconsistent. . Li Ning’s high -end positioning is caused by the enemy. “If I have no money, I go to buy cheaper Anta; if I have money, why not buy international brand Nike and Adidas?” Li Ning started to take a high -end strategy after 2008, but Li Ning’s high -end development was very incomplete. As a result, the two major international giants in Nike and Adidas were the challengers of Chinese companies such as Anta and Tuba who were unremittingly chased. Li Ning’s original and high -end market positioning space that had been established and relied on was unprecedentedly squeezed. 4. Too anxious transformation. Eager to change from the price market to the value market. Li Ning also made a great risk decision: by increasing the price to get closer to the distance from international sports brands. Although the price difference between Li Ning brand and foreign brands such as Li Ning brand and Nike and Adidas have continued to narrow, because the main customer groups of the Li Ning brand are still concentrated in second- and third -tier cities, and because of the product style, experience and marketing methods, there are no simultaneous follow -up, continuous continuous follow -up, continuously The price increase behavior has made Li Ning’s original cost -effective advantage. Those consumers who were already very sensitive to prices had to turn to domestic sports brands with high cost of Anta and Peak. (2) Management issues After the glory of Li Ning in 2008, the performance did not rise and fall straight until the loss. However, things violated, and this movement made Li Ning’s financial statements more and more unbearable. After careful analysis, it was found that Li Ning’s problem not only existed in market reform errors, but also chaos in its internal management. 1. The cost is too high. Cost control has always been a major aspect of restricting Li Ning’s profits. Too high costs have been existed within the company for a long time, but from the company’s decline to the company’s reform to Li Ning’s return. After so many years, this problem still exists. Compared with Anta and Anta, in terms of employee costs, Anta, including a large number of factory employees, 11 500, its cost in 2011 is only 4 180 Li Ning; In terms of marketing, Li Ning’s investment ranked first in the domestic industry, and its cost accounted for 17.6%of operating income, and Anta was 13.7%. However, the problem was that Li Ning lost more than 300 million yuan. 2. Channel out of control. Li Ning has always used the channel model of “light company”, that is, the production outsourcing and sales are handed over to the channel. Although this channel model has now become the mainstream business model, it is too early for Li Ning. Because the premise of this model is that the company must have strong control over upstream and downstream, control the smooth production of products, and control the implementation of the policy on the downstream. Li Ning was still lacking in these two aspects, so it was not that production problems could not be delivered on time, and dealers were unwilling to increase inventory, resulting in lack of coordination and unity of the entire supply chain. 3. Manage rough. Many of the high -level middle -level employees who are determined by Li Ning Company generally believe that the company has many problems in management. The collaboration ability between departments has poor ability, and employees hold standardism, making work efficiency inefficient. There are problems with poor coordination between the board of directors and the management, which cannot be consistent during decision -making, affecting the overall development of the company. In addition, Li Ning set up too refined in some aspects of management. The department differentiation is too detailed and the number is too large, which directly increases management costs. It in terms of brand promotion, Li Ning’s new media promotion is responsible for Ogilvy Public Relations, and the new media promotion of Li Ning’s comprehensive products is to a marketing company called Shiqu Interactive. Lai International Public Relations Company. When the three companies have business intersections, people from Li Ning need to coordinate. At this time, many jobs need to stop. Moreover, Li Ning’s coordinated personnel are constantly replacing. . The reform of Li Ning Company 2008-1009 Li Ning’s rapid growth accelerated his decline secretly. After realizing this problem, the brand rebuilding movement carried out by Li Ning not only failed to solve the problem, but also failed to solve the problem Instead, the burden is aggravated. Li Ning, who was regarded as Li Ning’s “savior”, returned to the company at the age of 49. She hoped to change the status quo, re -revive Li Ning’s glorious times, and continued Li Ningmeng.
Li Ning Industry? The sportswear industry? Or Li Ning Company? (If you are useful, please adopt it. Your admission is my biggest motivation, thank you!)
. The sportswear industry: Please refer to the “Analysis Report of the Market Prospective and Investment Strategic Planning of the Chinese Sports Service Industry in China”
. Li Ning Company: Li Ning Company has been listed in 2004, and its performance has risen all the way. In 2009, the mainland sales exceeded Adidas. Li Ning’s performance once occupied the forefront of the Chinese sports goods industry. However, in recent years, the strong development of other sports brands has continued to slump in internal and external markets. Li Ning’s performance has continued to decline and is suffering a crisis of survival. In addition, Li Ning’s development strategy and lack of brand spirit are also the cause of Li Ning. At present, Li Ning must recognize the root cause of the problem and find the road of development.
In 2004, before the opening of the Athens Olympics, Li Ning’s sports brand went to Hong Kong to go public. Li Ning pushed Olympic marketing to its peak at the 2008 Beijing Olympics. The following year, sales in the Mainland market exceeded Adidas. Li Ning’s performance once occupied the forefront of the Chinese sports goods industry. However, the 2011 annual report showed that Li Ning’s annual operating income was 8.931 billion yuan, a year -on -year decrease of 5.84%, and net profit was 386 million yuan, a year -on -year decrease of 65.19%. The continuous rising performance has begun to decline over the years. In the first half of 2012, sales revenue achieved 3.88 billion yuan, a year -on -year decrease of 9.54%, and net profit was 44 million yuan, a year -on -year drop of 84.92%. By 2013, the net loss had reached 392 million yuan. Both sales revenue and net profit have both declined. Li Ning, who has occurred, is not an example. The domestic local sports brand market has shrunk, the performance has fallen sharply, and the prospects are worrying. This article analyzes the status quo of Li Ning Company and puts forward corresponding opinions and suggestions on the problem.
. The main problem of Li Ning Company
The core value of Li Ning brand is not very clear in the minds of consumers, and the existing consumer group has a brand positioning of Li Ning brand with the brand positioning of Li Ning Company and the brand positioning of Li Ning Company. Not very close, some brand attributes that consumers recognize are exactly what Li Ning company wants to weaken to achieve its internationalization strategy.
(1) market issues
1. The brand positioning is unclear. According to a survey made by Gallop Consulting Co., Ltd., friendly and national honor is Li Ning’s most prominent brand personality. Not the young, fashionable and internationalized by Li Ning’s hard work. Li Ning’s goal is “high -end”, “professional”, “internationalization”. The positioning of Li Ning is “mid -to -high -end”, “primary”, and “national brand”. At the same time, consumers show the positioning of “friendly”, “honor”, and “national brand”. In addition, the attribute of “nation” is weakened by Li Ning because of the “internationalization” of Li Ning’s desire.
2. The style is inconsistent with the brand image. Due to the unclear brand positioning, Li Ning Company has the problem of inconsistent information and incompetence in the choice of product design, sponsorship activities, image and product advertising, store opening style, and even image spokesperson. The brand image is inconsistent.
. Li Ning’s high -end positioning is caused by the enemy. “If I have no money, I go to buy cheaper Anta; if I have money, why not buy international brand Nike and Adidas?” Li Ning started to take a high -end strategy after 2008, but Li Ning’s high -end development was very incomplete. As a result, the two major international giants in Nike and Adidas were the challengers of Chinese companies such as Anta and Tuba who were unremittingly chased. Li Ning’s original and high -end market positioning space that had been established and relied on was unprecedentedly squeezed.
4. Too anxious transformation. Eager to change from the price market to the value market. Li Ning also made a great risk decision: by increasing the price to get closer to the distance from international sports brands. Although the price difference between Li Ning brand and foreign brands such as Li Ning brand and Nike and Adidas have continued to narrow, because the main customer groups of the Li Ning brand are still concentrated in second- and third -tier cities, and because of the product style, experience and marketing methods, there are no simultaneous follow -up, continuous continuous follow -up, continuously The price increase behavior has made Li Ning’s original cost -effective advantage. Those consumers who were already very sensitive to prices had to turn to domestic sports brands with high cost of Anta and Peak.
(2) Management issues
After the glory of Li Ning in 2008, the performance did not rise and fall straight until the loss. However, things violated, and this movement made Li Ning’s financial statements more and more unbearable. After careful analysis, it was found that Li Ning’s problem not only existed in market reform errors, but also chaos in its internal management.
1. The cost is too high. Cost control has always been a major aspect of restricting Li Ning’s profits. Too high costs have been existed within the company for a long time, but from the company’s decline to the company’s reform to Li Ning’s return. After so many years, this problem still exists. Compared with Anta and Anta, in terms of employee costs, Anta, including a large number of factory employees, 11
500, its cost in 2011 is only 4
180 Li Ning; In terms of marketing, Li Ning’s investment ranked first in the domestic industry, and its cost accounted for 17.6%of operating income, and Anta was 13.7%. However, the problem was that Li Ning lost more than 300 million yuan.
2. Channel out of control. Li Ning has always used the channel model of “light company”, that is, the production outsourcing and sales are handed over to the channel. Although this channel model has now become the mainstream business model, it is too early for Li Ning. Because the premise of this model is that the company must have strong control over upstream and downstream, control the smooth production of products, and control the implementation of the policy on the downstream. Li Ning was still lacking in these two aspects, so it was not that production problems could not be delivered on time, and dealers were unwilling to increase inventory, resulting in lack of coordination and unity of the entire supply chain.
3. Manage rough. Many of the high -level middle -level employees who are determined by Li Ning Company generally believe that the company has many problems in management. The collaboration ability between departments has poor ability, and employees hold standardism, making work efficiency inefficient. There are problems with poor coordination between the board of directors and the management, which cannot be consistent during decision -making, affecting the overall development of the company. In addition, Li Ning set up too refined in some aspects of management. The department differentiation is too detailed and the number is too large, which directly increases management costs.
It in terms of brand promotion, Li Ning’s new media promotion is responsible for Ogilvy Public Relations, and the new media promotion of Li Ning’s comprehensive products is to a marketing company called Shiqu Interactive. Lai International Public Relations Company. When the three companies have business intersections, people from Li Ning need to coordinate. At this time, many jobs need to stop. Moreover, Li Ning’s coordinated personnel are constantly replacing.
. The reform of Li Ning Company
2008-1009 Li Ning’s rapid growth accelerated his decline secretly. After realizing this problem, the brand rebuilding movement carried out by Li Ning not only failed to solve the problem, but also failed to solve the problem Instead, the burden is aggravated. Li Ning, who was regarded as Li Ning’s “savior”, returned to the company at the age of 49. She hoped to change the status quo, re -revive Li Ning’s glorious times, and continued Li Ningmeng.