What Is The Secret Behind Lining'S Pformation And Losses?

In fiscal year 2015,

Annual revenue recorded a rise of 17% to 7 billion 89 million yuan, operating profit of 157 million yuan during the year, compared with the 643 million yuan of operating losses in 2014, this is a winning data.

Since Lining, the founder of the brand, returned to the company as chairman last year, Lining has brought his brand Lining back to life.

But since the start of the "channel revival plan" which cost 14 to 1 billion 800 million yuan in 2012, Lining, who is losing money, is also facing a pformation.

For repositioning, Lining explains Lining brand like this: "Lining is a professional sports brand in the era of mobile Internet."

Therefore, the brand will continue to revolve around the five core categories.

In the 2015 fiscal year, the company's five core categories drove the group's retail growth. The performance of basketball category was worth mentioning. The overall retail sales increased by 34% compared with the same period in the same fiscal year.

However, even if Lining, chairman of the board, believes that the brand needs to pform from traditional wholesalers to professional retailers, there are still many changes to be taken into account. "To build a professional retail system, we only finished 30%."

The founder said so.

In the future, can Lining pform the brand as he likes? But at present, the pformation is still slow and difficult.

Therefore, it is only the first step for Lining to turn the brand into a profit. How to make continuous profits is the most important thing.

Lining said that the further improvement of products, channels and operational capabilities is the key to the loss. In order to achieve this rare profit, Li Ning Co has reduced human resources, marketing and advertising, and has also moderated the speed of opening stores. The sales point increased by 207 at the end of 2015, reaching 6133, and the dealer sales point increased by 194.

Due to several years of inventory efforts, the end of 2015 does not include

Inventories fell by 20%.

However

High enterprises continue to beset Lining in the short run.

Last year, Lining's e-commerce revenue increased by 95% over the same period last year, and is expected to reach more than 20% within two or three years. From the perspective of public information, Lining's electricity supplier income reached 567 million yuan last year.

Last year, Lining targeted

The platform has launched two.

New products, "strong Jun" and "Red Rabbit", have achieved good results.

According to Lining, at present, the gross profit of the electronic business platform is more than that of the physical store, so the sustainable development of e-commerce will play an irreplaceable role in improving Lining's profits.

Multi brand

In addition to the launch of the new series, Lining launched the "LNG" and "spring label" for the leisure sportswear market.

For the continuously sinking channels, the emergence of multi brands is conducive to meeting the needs of different consumer groups. Lining's single brand is hard to regain its former glory.

For example, AF's Hollister, Gap's Old Navy and so on have brought a lot of receivables to the parent company, which has provided a valuable breathing space for the brand.

Increase direct camp

Lining's inventory crisis broke out in the final analysis, because the proportion of franchised stores was too large, and headquarters failed to control the franchisees. It failed to find the very serious inventory problem at the first time, which eventually led to a sharp turn in Lining's performance. He said goodbye to the first tier of Chinese sports goods. Lining said it would increase the proportion of Direct stores from the current 35% to more than 50% in recent years.

In recent years, the fast growing brand of fast fading brands is sticking to the camp.

UNIQLO, H&M and ZARA have provided good models for the industry.

Speaking of the future development, Lining laughs: "when the general economy is not very good, people have more time to participate in sports. Of course, the bad economy will also affect people's purchasing power. Therefore, I am cautiously optimistic about the future.

We will not expand blindly, and achieve profit growth is our goal, but we will not pursue profits alone. We must build a framework for future development and lay a good foundation for sustained profitability. "

This means that a professional retail system will continue to make profits in the fierce market competition, and there are still many concerns.