As of March 22, the domestic group of major sports brands: Anta, 361 degrees, Olympic, special steps have issued a 2011 earnings report, all reflect cautious about prospects for the future, overstock, and the slowdown in growth highlights the difficulties faced by China's sporting goods industry as a whole. As the industry leader, Li Ning in early 2011, admitted that the entire sporting goods industry will face a grim situation, the restructuring of the industry is inevitable. Now look, the taste of the original judgment of Li Ning Company is a bit wise prophet ", but it seems that when the capital markets and the media" see the trees but not the forest, only when Li Ning own problems. Despite the challenges, Li Ning, the company also stressed that the face of market trends and industry, there is a common problem, companies should plan ahead, ready to meet the challenges. The future of the sporting goods industry Shift from cost-driven value-driven business model to enhance the brand product premium, long-term and stable development of the Li Ning brand, and eventually became the basis of well-known international brand. The early 1990s, the Olympic champion Li Ning after retirement to start a business to achieve its "champion put the dream of the Chinese sports brand" and "brand" has become the core of the Li Ning's business model. Improve the business model continue to build brand competitiveness Browse the media reports over the past few years, public opinion seems overly concerned with short-term performance of Li Ning, and very little depth analysis of its business model, strategic planning and implementation capacity of the content. Review of Li Ning's history, give us a more comprehensive understanding of, and homegrown companies in the past 25 years, has been to follow the market trend, take the initiative to identify problems and seek ways to solve the problem. The early 1990s, the Olympic champion Li Ning after retirement to start a business to achieve its "champion put the dream of the Chinese sports brand" and "brand" has become the core of the Li Ning's business model.
In the very early stages of development of the sporting goods market, the brand of Li Ning, the individual has played an irreplaceable role, but the company has been strengthening the closely integrated with China's sports champion Li Ning brand "has become a well-known national pride. The late 1990s, through the management of change, Li Ning entered the career path of development, became the first listed sporting goods company in 2004, and ushered in a new development opportunity. Beijing's successful bid in 2001, the 2008 Beijing Olympic Games to the Chinese sporting goods company has brought the once-in-a-century opportunity, all major brands of triumph and rapid expansion, enjoying a feast. "Fu Xi disaster relied on" dialectics, however, once again is reflected in China's sporting goods industry who originally implied in the extensive rapid growth mode quickly beginning to emerge. In 2009, the sporting goods industry also began to encounter the common problems encountered by other industries in China, the raw material and labor costs continue to rise, the rapid rise in retail rental space of the chain are being squeezed. At the same time, consumer demand for the brand and product is more mature, international brand is also constantly exploiting the boundary, the formation of further pressure on local brands. Li Ning Company through analysis of the industry to further strengthen the determination of the perfect business model in 2010, offered a "rebranding" and "channel change" two major reform measures designed to achieve brand differentiation, and enhance the efficiency of retail operations. in response to changes in the pattern of the industry as a whole. The company's management was clear that the next two to three years for the whole industry in transition. Although various doubts of the voices, the Li Ning Company is still stick to their strategy - to comply with the development of the industry trends, to face all kinds of business issues, plan ahead, ready to meet the challenges. The concentration of superior resources to lay the foundation for sustainable growth Since the various sports brand company listed outside world are accustomed to using the financial data of the various horizontal comparison. Everyone seems accustomed Comments Li Ning company the cost of a higher rate of lead affected profit margins than other companies efficiently. The reporter consulted a number of industry experts and financial professionals, and research found on other sporting goods company Li Ning at home and abroad in recent years, the cost structure, everything should look at the surface, combined with its strategic positioning behind the in-depth understanding .
The brand is the core content of the sporting goods industry, companies are disclosed in the advertising and marketing and promotion expenses accounted for the proportion of sales, the reporter from the annual reports of each company to find these data were compared (see Schedule) . And other domestic brands, Li Ning Company that part of the expense ratio is the highest in the industry. Anta, the business is essentially only started in recent years a massive increase. Note Li Ning earlier to see the nature of the development of the industry, more forward planning, the financial resources to adapt to the "brand oriented" strategy. But part of the cost rate in the end is higher, or lower is good? Throughout Nike, Adidas has experienced decades of nearly a hundred years history of successful brands, today in the sales revenue is domestic brand a few times the level of advertising and marketing investment still accounts for more than 10 percent of sales, can be seen constantly to maintain investment in the brand's success is an international brand for sustainable development. Brand into the expense ratio, for example, Li
Skate Shoes, the financial resources planning is evident, but the high expense ratio will inevitably affect the current profit margin, operating margin levels in Li Ning is lower than other domestic brands a lot, and then look at the international brand, history seems to tells us that perhaps should not use short-term profit margins are high or low to measure the success of a company, but depends on how the company concentrate superior resources to promote the long-term development, whether in victory in the long-distance running. In the course of the study, the reporter also concerned about the aspects of product development data. Li Ning also has been maintained high investment, and other domestic brands in recent years is rapidly increasing R & D costs, companies are aware of the importance of the product. However, Li Ning, the company focus on product strategy is quite forward-looking. The observed Li Ning, the company launched new products in recent years, such as Li Ning Gong, Li Ning arc technology platform, we are also easy to understand, and constantly enhance technical innovation and materials innovation is a long-term development of the basic conditions essential. This indicates that Li Ning Company has a strong strategy to control the fundamental direction of the enterprise development.
Li Ning to see the nature of the development of the industry earlier, forward planning of their financial resources to adapt to the "brand-oriented" strategy. We all know, the cost issue is one of the key factors that determine the business model. Chinese sporting goods company in the past decade lucrative, a large part of the reason is to rely on lower cost structure, type of business model for such an extensive natural face a huge challenge. Chinese sporting goods enterprises are faced with two choices: First, by their own business, saving the brand and R & D investment, and provide basic products; the other is to enhance brand value, enhance product development, to consumption from production to sales to provide a better brand experience and quality products, the stronger pricing power, and pressure to cope with the rising costs of the whole industry. Li Ning, choose the latter. Different options and the enterprise's own business model and long-term accumulation of experience and ability is closely related to self-adjustment process of domestic brands, how to comply with the development of the industry trend, combined with their own advantages to make the transformation is not an easy process, which may be discussed by Li Ning, the meaning of "labor pains" where. Some experts believe that Li Ning from cost-driven approach to value-driven business model to enhance the product premium brand, will no doubt long-term stability of the Li Ning brand development, and eventually become an international famous brands to lay a solid foundation.
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GoodLandShoes date 4.8.2012