"Gao Fu Shuai" Li Ning becomes "poor"

According to statistics, the six sports brands have closed 2249 stores in the first half of the year, and have closed stores for 12 stores a day, and inventory has only dropped by 8%. According to public information, in the first half of this year, only the Li Ning family had 410 net closed stores.

The high stocks led to a decline in performance "new 75 percent discount", "full 100 minus 30", this is the latest discount information obtained by the "China Enterprise News" reporter when he visited the Li Ning store. The reporter saw in a number of Li Ning stores, in order to digest the inventory, Li Ning frequently launched special sales, and even a new listing on a big discount, even so, Li Ning's store is still extremely small.

In the face of continued poor performance, Li Ning blamed the rapid changes in the macroeconomic environment. Li Ning Company believes that the decline in performance is due in part to the reduction of wholesale sales, provision of accounts receivables and inventories, the costs associated with the implementation of change plans and channel revival plans, and other reorganization costs.

Chong Consultant light industry researcher Xiong Xiaokun believes that, apart from the downturn in the macroeconomic environment, Li Ning's brand value has also fallen sharply with hematemesis. During the peak period, Li Ning Company wanted to take the international brand route, but encountered an unfavorable external economic environment and returned to the same place. As the inventory pressure had to be cleared at a low price, it was returned to the low-end, and the competition in the low-end market was more intense. As a result, performance continued to decline.

Data show that in the first half of this year, Li Ning's operating income reached 2.906 billion yuan, down 24.6% year-on-year; inventories fell to 841 million yuan, down nearly 26% year-on-year, but remained high.

In order to clear inventory, in addition to multiple channels such as discounts, special sale items, and discounted fields, Li Ning also cooperated with e-commerce websites to sell off-shelf products. On the evening of September 13, a reporter of China Enterprise News searched Li Ning on Taobao. The drop-down column showed Li Ning official network flagship store with about 1,148,988 pieces of baby. Men's shoes, women's shoes, men's wear, and women's wear were all available. The low discount of the product directly to users. In addition, Li Ning is also authorized by Fanke, Jingdong, Tmall and other online merchants, all have great discounts.

Zhu Qingyu, a light industry researcher at China Investment Advisors, said that the domestic sportswear market is still in an oversupply situation. Although the use of e-commerce and offline promotions to promote clothing sales have increased, but it is also accompanied by falling prices. As a whole, the pressure of sportswear brand destocking is still high.

"Gao Fu Shuai" Li Ning transformed into "poor silk"

On September 11, the reporter stood near Li Ning in Zhongguancun Square for nearly an hour. During this period, only a dozen people came to visit and no one was spending. A clerk next door said, "This situation is very common." When asked why he did not buy Li Ning, Xiao Zhang, who was visiting Zhongguancun, told reporters: “Now, very few people wear sportswear. People who wear them will find it very soily, or they prefer fashion and casual clothing. If you have to buy sportswear, you may choose brands like Nike and Adidas."

Not long ago, a reporter from the China Enterprise News registered on the website of Vanke Eslite.com, and Li Ning started the special sale event on the Vanke website starting from 19 yuan. The company's men's and women's style sports shoes, T-shirts, baseball caps and other products , Have sold "cabbage prices." Among them, the lowest price is a baseball cap, the price of 59 yuan, priced at only 19 yuan. However, in the face of Li Ning's vomiting blood sale, many customers do not seem to buy it. Many netizens lamented: "This type of sale is detrimental to the brand image. I did not expect Li Ning to come to this point."

Recently, after the reporter clicked on the Li Ning official online store of the Tmall Store, the words “Fall Sports Benefits - Full 300 Decrease by 50, Full 200 Decrease by 20” appeared on the homepage.

Yan Yuelong, director of public relations department of Jingdong Mall, commented on Weibo: Li Ning cleared the inventory through Vanke. It was cool in a short time. In the long run, it hurt the brand. Who would go to buy Li Ning’s seasonal products at a high price? You wear Li Ning. When you go to the street, you will definitely say that it is 10 to buy it.

Xiong Xiaokun believes that consumers do not buy Li Ning because Li Ning changes from Gao Fujian to Poor, which in turn will affect the personal image of the brand.

Li Ning's transformation and degree of change "winter"

Although Li Ning is still in the "winter," it is worth noting that recently, Li Ning, whose performance has already fallen to the bottom, has shown signs of recovery. In the first half of the year, Li Ning’s overall gross profit margin increased from 43.2% in the same period of last year to 43.6% during the period, representing an increase of 0.4% year-on-year, and more than 90% of the distributors participated in the channel renewal plan, and the average turnover period has dropped significantly.

According to industry insiders, “The major sports brands in China closed more than 2,000 stores in the first half of this year. After swallowing the consequences of blind expansion and causing pass-by-pass shops, local sports brands have begun to make conscious and active adjustments and achieved certain results. ”

At the annual general meeting of Li Ning on May 31 this year, Li Ning, chairman of the company, admitted that in the first half of the year, the company still faced pressure and challenges, but the overall progress was in accordance with the reform plan, and the progress was in line with the plan. Originally expected 2-3 The annual transition time may be shortened.

After a series of adjustments, Li Ning's "winter" seems to have shown signs of improvement. "As destocking has almost gone, compared with last year, this year's performance has obviously improved." Xidan shopping mall's Li Ning store shopping guide told the "China Enterprise News" reporter, "Last year's average monthly income was only more than 100,000, and This year's average monthly income has reached 300,000, and now our goods in the store are basically new."

Industry analysts said that in the first half of this year, the company closed a certain number of low-efficiency stores, but at the same time also opened a new high-efficiency store. Closing the store and rationalizing the sales network have caused major changes in the sales network.

These measures may be an important magic weapon to save Li Ning's power, but in the face of such foreign brands as Uniqlo, China’s move to founder Chen Yihong – this former senior executive who was once rooted in Li Ning for 14 years also shared his macroscopic thinking on the industry crisis. .

Chen Yihong believes that most Chinese companies are big wholesale models, brand owners do not control retail channels, sales rely on agents, respond to changes in the market very slowly, and accumulate a lot of inventory.

In this regard, Chen Yihong suggested that the example that these brands should learn is Japan’s UNIQLO model, namely the “brand dealer + retailer” model, in which the brand owner vertically integrates all aspects of the product chain and uses his own terminal as a terminal to complete sales at the retail end. Only calculate performance.