2011 New Year, for Li Ning, is a real Hom.
Affected by the declining order book value in the second quarter of 2011, the stock price of Li Ning plunged nearly 16% on December 20 last year, and the market capitalization evaporated over 3.5 billion Hong Kong dollars on the 1st. The major brokerages have sing bad Li Ning, led to Li Ning stock plunge and the recent institutional sell-off. Goldman Sachs pointed out that Li Ning is facing two major risks: brand risk and sales channel risk.
In fact, the tone of bad news Li Ning from the second half of 2010 to start a standard, what is the deterioration of the external market led to the decline, or run out of their own problems?
Was "Jinjiang help" catch up
Li Ning was once a "national treasure" brand in the eyes of a generation of Chinese people. Li Ning won the recognition and respected people of the country as an unprecedented part of China's sports culture and history.
However, due to the early product features research and development, design strength is not enough to enter China's Nike, Adidas, and gradually with sturdy brand culture and product advantages of education, carving up Chinese consumers. Lack of core competitiveness, making Li Ning national brand emotional assets gradually become discolored history.
Anta, Xtep and other brands led by Jinjiang help, with the image of the cottage, low price and years of deep second, third and fourth line market channel advantages, overnight come to an agreement, erected countless noodles "signs" Pushed the country, as if formed With Li Ning rivalry potential.
In response, Li Ning has launched a "brand internationalization, localization of the market" strategy, trying to use the international brand image to distinguish between other local brands. On the eve of the 2008 Olympic Games, "Flying A" basketball shoes launched by Li Ning won the "IFChina2006 Industrial Design Grand Prix" Textile and Fashion Award, which is called Oscar for the industry. A series of oriental sports shoes such as "Li Ning Bow" Elemental function and product development; in one breath won Spain, the Swedish Olympic Committee and athletes and sports teams, becoming the first sponsor of foreign Olympic delegation of Chinese sporting goods brand.
While actively shaping the international image, Li Ning virtually surrendered the advantages of "civilian-owned brand" to domestic competitors. Anta took advantage of it and shouted out "the backbone of the Chinese backbone", attempting to ambitious plans for China's No. 1 brand, and won the CBA, CUBA, China Volleyball League and other domestic competition resources. 361 degrees, Pick, Hongxing Erke also compete for local resources. Although Li Ning is still firmly in control of gymnastics, table tennis, shooting these heavy sports camp, but it has been difficult to widen the gap with other local brands.
Internationalization hanging in the air
At the time of instability in the country, Li Ning replaced the Logo in June 2010, but more firmly set the goal of internationalization: full internationalization from 2014 to 2018, making it the top five sports brands in the world and the No. 1 in Chinese sports brands. Is this a wise move?
Beginning in 2009, Li Ning acquired the first brand of Chinese badminton equipment Kason and won the "only designated equipment" rights of the Chinese badminton team from Yonex in an attempt to overwhelm Yonex. In addition, Li Ning, though hard-working in gymnastics and table tennis, has become the largest shareholder of Double Happiness, but has been unable to establish a comprehensive and significant advantage in terms of equipment and equipment. Li Ning also signed the Norwegian javelin world champion Andreas - Tohildson, launched the endorsement of advertising, but these track and field resources and first-line international brands owned by comparison, is still a drop in the bucket.
Whether it is badminton, track and field, gymnastics or table tennis, Li Ning layout is not a strong global sports assets, Nike, Adidas, Puma and other first-line brand, with strong financial resources, has long divided the limited international resources for the Li Ning brand The space for internationalization of images is very limited.
Internationalization has not yet succeeded, in the domestic market, Li Ning's channel has been at risk. As of June last year, Anta has opened 353 stores in Shanghai and Beijing compared with Li Ning, which has more than 1,300 stores in first-tier cities, with the advantage of "Jinjiang Group" occupying second- and third-tier cities. The gap is shrinking. Has been 觎 觎 huge third- and fourth-tier cities Nike has just announced that it will channel low-end products to sink.
In fact, the internationalization and local advantages have been reluctant to allow Li Ning has been in an awkward mezzanine, it is actually being built in mid-air.
Li Ning, there is no chance to stand up, recovered in one fell swoop lost ground? We may wish to refer to several world-recognized "national brand", with their shared quality and Li Ning for analysis and comparison.
Pass the national cultural image. Adidas stressed Germany's will and quality, Nike stressed the freedom and dreams of the United States. Li Ning emphasized the internationalization, but did not highlight the national treasure-class brand positioning values ​​and culture.
Output sports philosophy. Nike is not selling shoes, but rather the spirit and belief in sports, so as to achieve the core purpose of brand marketing. Although Li Ning shouted the slogan of "makeitchange" after the change of bid, it has few specific behaviors in helping athletes achieve their dreams and dreams. This shows that Li Ning has not yet formed a systematic brand culture system and principles.
Promote sports development. Compare the contribution of Adidas to track and field and its contribution to the Olympic Games; Nike's contribution to the basketball and basketball culture; Canterbury's outstanding contribution to rugby, etc. These foreign brands are all important to the development of some modern sports events Contribute, and become an important brand equity. Li Ning has been accumulated in badminton, gymnastics, diving and other projects, but an overwhelming advantage needs to be formed in these projects.
Technical breakthroughs in product innovation. Take the example of Under Armour, an athletic equipment brand founded by a football player in the United States. The brand's fabrics, which are made from absorbent polyester yarns, have created the trend of sports equipment. In the segment, they have overstressed the Nike, Adidas . Li Ning is still required to get rid of cottage technology R & D methods, the future should avoid the big good at the area, with unique breakthrough technologies and products shaping the future of core competitiveness.
Carry historical memory classic. The peak time of those sports, often with the sports brand behind, was included in the annals. For example, Jordan and Nike, German football and Adidas. After losing the opportunity of the Olympic partner, Li Ning should attach importance to competition and control of high-end sports resources by sports brands both at home and abroad, including athletes, sports team resources and tournament resources to regain the high ground.
Unique brand design language. Mature brands will inevitably form their own unique style of the brand design language, with strong recognizability. The author believes that from the new logo of Li Ning, sensitive, balanced, flexible and precise four oriental traits of DNA, need to be highlighted by the representative products to enhance consumer acceptance. Such as the 2000 Olympic Games in Beijing Long service, called Li Ning brand classic with Chinese characteristics. These accumulated assets, should not be discarded, need to improve their own ideas and style.