Is The Combination Of Fashion And Sport Harmonious Or Professional?

Now Lining's performance has gone up, but the brand image is still far away from the young people. Lining also said last year: "now Lining sells 80 billion yuan a year, but some people think Lining will go bankrupt in second days."

But judging from Lining's actions last year, Lining was "enlightened" to please young people.

In March 22nd, Lining (02331) released its 2017 earnings report, which is the report card of Lining, the founder of the company, for third years.

Earnings data show that the company's revenue in 2017 amounted to 88.74 billion yuan, up 11% over the same period last year.

Among them, Lining's main brand revenue accounted for 99%, up to 8 billion 819 million yuan.

Lining is recovering steadily.

In 2008, Lining ignited the Olympic Games in Beijing and gave his company a throttle. Following the development of sports and sports in China, the Li Ning Co expanded rapidly and reached a peak of 94.78 billion yuan in 2010.

But then the laureate of Lining's local boss began to waver. He abandoned the middle aged and elderly market, overextended inventory backlog, and surrounded by competing products at home and abroad. Li Ning Co accumulated a deficit of 31 billion yuan in 2012~2014.

By the end of 2014, Lining had ended the era of professional managers in the company. He was a pro CEO position. As shown above, Lining staged a heroic heroic return and led the heavy Lining to turn around and turn a profit.

Let's take a look at the main outcome of Li Ning Co's 2017 financial report:

1. profitability.

The company's revenue rose 11% over the same period last year, operating profit of 446 million yuan, gross profit 4 billion 176 million yuan, gross profit margin increased from 46.2% in 2016 to 47.1% in 2016, and the operating profit margin increased from 4.8% in 2016 to 5% in 2017. The profit in the year decreased from 700 million in 2016 to 5.15 billion yuan in 2017.

2. inventory situation.

The company's inventory dropped from 143 million in 2016 to 130 million in 2017, and the overall inventory value decreased due to the optimization of library age structure.

The average inventory turnover period decreased from 82 days in 2016 to 80 days in 2017.

3. marketing and product development.

The share of the company's marketing expenses dropped from 12.3% in 2016 to 10.2% in 2017, and the cost of product research and development increased from 1.6% in 2016 to 1.9% in 2017.

4. sales channels.

In the domestic market, the proportion of franchised dealers in 2017 was 47.8%, down 3.4% compared to the same period last year. Direct sales accounted for 30.7%, down 1.2% compared with the same period last year, and electricity providers accounted for 18.8%, up 4.5% over the same period last year.

The international market share increased from 2.6% in 2016 to 2.7% in 2017.

As of December 31, 2017, it did not include Lining YOUNG. In China, the total number of sales outlets in Lining totaled 6262, a decrease of 178 in the current year, and 173 new outlets in Lining YOUNG.

These are some data that deserve our attention. Detailed financial reports are here.

On the whole, Lining's performance is recovering smoothly, and there are some potential for improvement.

After implementing the strategy of "focusing on core brands", the Li Ning Co cut down the red double happiness. At present, apart from the 99% main brands (including Lining YOUNG), Lining also has different brands including Lotto (Le Tu), Kason (Kai Sheng), Aigle (Ai Gao), Danskin (Dan Shijing) and spring label.

What did Lining do?

The Tencent prism article summed up the action from Lining's return to the first half of 2017.

1., change the strategic direction.

It will pform from sports equipment provider to "Internet + sports life experience" provider. Behind this new strategy, it means to build up a "digital business platform" in product, channel, O2O mode, consumer interaction mode and the construction of digital business platform.

2. change advertising slogans.

The slogan "let change happen" is changed to "anything is possible".

3., enhance R & D capability and focus on core categories.

Tiger sniffing article Lining once said, "the main reason for the company's turnaround is to make strategic adjustments in the past few years based on big data, cut down the life oriented products, and strengthen the research and development of sports more powerful products, including runners."

In the category of products, running, basketball and badminton are the most important products of Li Ning Co.

4., inventory adjustment, power providers and children's clothing.

In addition to the selection of offline stores to close, the electricity supplier is the key development channel of Li Ning Co. According to Lining's assumption, the proportion of future electricity supplier sales should be increased to 25%~30%.

In the second half of 2016, Lining officially launched the children's wear business, and "Lining KIDS" was upgraded to "Lining YOUNG", focusing on the distribution of the channel.

In 2017, Li Ning Co continued to make efforts in the following aspects, and also focused on two aspects:

1., strengthen the influence of sports.

The Li Ning Co has extended its sponsorship of CBA, organized sports activities such as basketball matches under the line, signed NBA player Mackler M, and Lining IRUN IRUN Club gradually to scale up operation. Now it has attracted twenty thousand runners to join.

2. take a young and fashionable route.

Li Ning Co signed star Yao Xingtong as spokesperson for running training products. You Wang Likun launched a joint product, worked with fashion media, implanted products with the help of media photographers, sponsored the Beijing TV Dance Dance variety "dance awakening".

The fashion line is Lining's antidote?

In 2010, Lining abandoned the middle-aged and elderly market, replaced trademarks and slogans, began to "post 90" and took the younger route.

However, most of them did not have economic independence at that time, and those who belonged to Lining were the ones abandoned by Lining instead of 90.

This is also an important reason for the decline of Lining.

Now Lining's performance has gone up, but the brand image is still far away from the young people. Lining also said last year: "now Lining sells 80 billion yuan a year, but some people think Lining will go bankrupt in second days."

But judging from Lining's actions last year, Lining was "enlightened" to please young people.

In February of this year, Lining and Tmall collaborate with Tmall to take the show in the fashion week. The theme is "enlightened road". The design also has the shadow of Chinese culture, but more often the most popular style of high street nowadays.

To block Lining's LOGO, the difference between design and other high street style products is not obvious.

And the key to guiding fashion is precisely where it appears and who is accepted.

The fashion week is a very successful marketing. Few consumers are concerned about whether the fashion week is not in name only. It's more about the reports and bloggers' recognition of New York's show and Lining's brand image in the domestic market.

"FILA" and "fly over" of old trees blossomed out a good interpretation of "carrying goods" and reversing the brand image of selective exposure, while Lining sold the custom shoes with rap GOSH GOSH in last summer hip-hop fever, and then signed hip-hop singer GAI to launch joint shoes. Though for some reasons, cooperation was not smooth, but watching the speed of follow up has already touched the way.

Although Lining's market value has reached 180 billion billion after the show, don't be too happy.

On the fashion line of competing products, Lining is not only far away from Nike and Adi, but also has a large gap from Puma and CONVERSE.

Lining did not have a well-known product.

Lining's style of learning from the fashion brand is beautiful, but there is always a slight taste. The core competitiveness of the sports brand should be on technology research and development. An analysis of the article by GE Long Hui shows that there are two results in the combination of fashion and sports. One is the combination of professional and fashion, one is fashion discount, the other is professional.

If consumers are motivated by sports, professionalism is the focus.

In 2017, Lining's product R & D accounted for 1.9% of the total revenue, but Anta's R & D costs accounted for 5.9%.

Now, Lining still has hundreds of billions of Anta's near 5 positions. What's the difference between them? Lining must be alert.