Li Ning Play Capital of the Successful Introduction of the Private Equity Fund TPG

Li Ning recently the best news is the successful Skate Shoes introduction of the U.S. private equity fund TPG as a strategic investor. , TPG's strategic investment from the capital market's response to Li Ning played the role of the JiuXinWan. This news came out, Li Ning, the company's stock rose 21 percent in the subsequent two days. The introduction of experienced and willing to participate in the management of strategic investors into the company board of directors, will help promote the company to further improve the corporate governance structure, to promote the corporate strategic change. It is reported that TPG has 17 years of investment experience in China, have a strong resource in the consumer goods and retail industries. One of the most worth mentioning, it should be 2009, TPG, to help Taiwan-funded footwear manufacturers Daphne turnaround transformation success stories. Therefore, people generally want the legendary Daphne successful restructuring in transition in the Li Ning, who repeat itself. In addition, TPG, GIC investment side for Li Ning to bring 750 million yuan of funds, but also to the further change of the Li Ning, the company's financial security.
"TPG and GIC investors of Li Ning Company, Li Ning Company to add more flexibility and flexibility in investment, a fund will be invested in the deepening of enterprise transformation, the development of brand, to bring us to continue to develop and have more the movement of resources, product R & D and design capabilities, promotional materials innovation and market competitiveness of the sixth generation shop to large-scale market. "Li Ning CEO Zhang Zhiyong said the end of 2012, Li Ning in China has a 1500 sixth on behalf of the store, the renovation project of about 18% of 8300 retail. The 2012 "Olympic year" to bring good luck gave Li Ning is also a Chinese sports brand is a difficult leap hurdles. In 2011, the domestic sports brand collective "big stock" phenomenon, in 2012, shipments and new orders, the pressure will appear in the major brands who.
In the domestic market, Nike, Adidas, Anta, 361 degrees, special steps, such as a series of powerful brand Li Ning eyeing With TPG for Li Ning to bring confidence and capital, is expected to change the Li Ning decline fate. In fact, the growth of Li Ning's story reflects the plight of China's manufacturing industry as a whole, after the failure of the rebranding, the highlight is also the difficulties faced by the domestic industry-wide: the core value of the brand itself did not enhance the homogenization of serious the lack of substitutability. Analysis of the industry, competition in the local sports brand will be more intense when the clean-up inventory of major brands cheap discount originally not high visibility brand will be more difficult. In addition, in recent years, the brand are crazy shop pushed retail rentals and operating costs, even with financing channels can ease the pressure of the financial chain of listed companies, the day is not necessarily better. It seems that the transition, although risky, but imperative.
It's written by GoodLandShoes date 4.4.2012