After the successful acquisition of Kason, Li Ning accelerated the company in the process of multi- brand at the same time, began to Adidas launched the domestic sports market "second" position challenge.
"Li Ning must be the second brand in the Chinese market to launch an attack. We turned out to be the third, and now challenge to this goal." Back in August this year, Li Ning Sports Goods Co., Ltd. (hereinafter referred to as Li Ning) announced in mid-2009, the CEO President Zhang Zhiyong in Hong Kong clearly revealed the "ambition", hoping to replace Adidas in the Chinese market position, followed by Nike, take a second look.
Zhang Zhiyong is the emboldened. According to the 2009 Interim Report, Li Ning achieved a revenue of 4051.9 million in the first half of this year, an increase of 32.4% and a net profit of 472.5 million, an increase of 41.6% over the same period of last year. At the same time, Li Ning Kason Sports (Hong Kong) Limited (hereinafter referred to as Kason) acquisition of the dust also means that the local first sports brand and the local first badminton brand completed a "seamless docking."
Li Ning has done well in the domestic sports brand, and its market share came after Nike and Adidas. If the competitors did not behave as satisfactory, then Li Ning will be the next step beyond. Just, Adidas volunteered to send this "gift." In the first half of this year, adidas net profit fell 95%, fell to 13 million euros; and huge inventory pressure, it is adidas caught in the hard to inventory of the campaign.
It seems a bit easy opportunity to come. However, the current multi-brand strategy Li Ning point of view, want to turn the chance into reality, but not so easy.
"Under the blood" into the badminton market benchmarking project to achieve brand differentiation July 6, Li Ning officially announced the acquisition of all the shares to Kesheng for 165 million yuan, involving "Kason" brand badminton racket, feather line, sportswear, badminton shoes And badminton sports accessories and other professional products research and development, manufacturing and marketing, all-round into the field of badminton, trying to badminton into a benchmark project, to achieve brand differentiation.
And Li Ning's recent move in the badminton market is even more convincing Li Ning is determined to win the market's determination: In May, in Beijing China International Sporting Goods Fair, Li Ning and the national team officially signed a badminton team to replace the cooperation 26 years of Japanese brand YONEX, became the designated equipment sponsor of national badminton team; Subsequently, sponsored "Li Ning 2009 Sudirman Cup World Badminton Mixed Group Championships", for the first time to Li Ning brand badminton products to the market, debut international events; Three steps, the introduction of the "winner spirit · Renren" badminton series of ads, deepen consumer memory and cognition of the brand; then, sponsored the Singapore National Badminton Team and the Singapore Open in overseas markets opened the first badminton flagship store ... In short, Li Ning in the badminton business up and down "blood."
So, what makes Li Ning have the courage and courage to want to "go all the way" in the badminton market?
"To become a professional sportswear brand, you should become a leader in the field of professional sportswear, or one of the leaders." Zhang Qing, founder and principal consultant of Beijing's key sports consultancy, told reporters: This is Li Ning's long-standing wish. "Zhang Qing, who has been working in Li Ning for seven years, has curated and executed the sponsorship of Li Ning, the Olympic Games in Sydney, the Sydney Olympic Games and the French Gymnastics Team. In Zhang Qing's point of view, Li Ning actually went through some "detours" while exploring the breakthrough in the field of specialization.
"Li Ning initially chose two major directions for what he calls mainstream sports - soccer and basketball." He signed Li Tie to develop "Iron Series" products, including contracting O'Neal and becoming an NBA partner in China ... "However, In Zhang Qing's opinion, Li Ning is not going well in both areas.
With the deteriorating football environment in China and Li Tie's injuries, football supplies in particular face a relatively narrow reality in football field throughout China. Therefore, the first to die is football. In the Red Sea basketball market, Li Ning, Nike beyond the external, Adidas is basically the possibility of zero; there is no obvious advantage, Anta, Peak, Jordan, although these brands as a whole can not go beyond Li Ning, but sales of basketball shoes to Say that any one is above Li Ning.
"Li Ning choose badminton in fact the choice of basketball with the United States Nike, Germany Adidas choose football has the same purpose .German football is the fourth World Cup; basketball in the United States, though not the largest sport, but the NBA has basketball in the United States has enough mass base . "Zhang Qing believes that badminton is a strong project in China, and will not be as weak as the lack of internationalization and low dependence on professional equipment like ping-pong and martial arts. From this level, Li Ning took badminton "to start", it is a wise move.
From the perspective of market capacity, badminton market will be more broad future. Badminton is China's second most popular sport, according to China Merchants Securities (Hong Kong). The market is growing at a double-digit annual rate with more than 250 million people participating in sports and annual sales of several billion yuan. Li Ning, who owns more than 10 years of badminton marketing experience, said: "From the company of badminton brands I have been wholesaling, some of the company's products are sold to Southeast Asia and other Asian regions each year. As a result, their annual sales are gradually expanding. Badminton In China and Asia have a higher degree of participation. "Kathy, in the badminton sector status as Li Ning in the Chinese sports market, the same situation, the Katsun founded in 1991, is China's first badminton brand.
As a result, Li Ning "grabbed" the acquisition of R & D, production and sales channels more mature Kason will be conducive to Li Ning Kason by virtue of strength, improve product development strength and reduce production and management costs; accumulated for many years Dealer resources, eliminating the company's channel laying experience and time; and access to overseas sales network to prepare for future internationalization. Badminton through the establishment of brand influence in the market, so as to promote running, basketball, football and other products in the market recognition of the category.
Of course, the challenges and opportunities coexist. "Badminton professional players are still mostly choose to veteran YONEX; and for casual consumers in general, located in the high price of Li Ning, there is not enough price advantage." Zhang admitted frankly, Li Ning in the industry there is no precedent The outcome of the decision-making, remains to be seen.
Multi-brand strategy in parallel with the full blossoming of flowers is too early After the acquisition of Kason, Li Ning, including Li Ning, the brand has reached six: supermarkets channel distribution Z-DO (new move) brand; and France AIGLE Of the outdoor brand Aigo; Lotto (Lotto), an Italian sports fashion brand with a two-decade exclusive license agreement; and the Hong Kong-based DHS and the recently unveiled Kason.
These seemingly unrelated business, together constitute the multi-brand strategy of Li Ning.
The main brand, Li Ning, is the company's core business and will provide major sales contribution to Li Ning for a long time in the future. Affiliated brands are newly established, mainly supplying supermarkets such as Wal-Mart. Upstream suppliers, brands and downstream retailers This powerful supply chain integration together; joint brand music way, flagship color and fashion design to "make up" had given up the loss of KAPPA, a share in the sports fashion brand; Aigo brand is mainly for China's outdoor consumer market , Helping to increase the company's awareness in other areas of consumption, to make up for the consumer groups that Li Ning brand can not cover; for the sports equipment market, Double Happiness, let Li Ning have a better brand equity under the premise of preempting access to sports equipment Market opportunities, the establishment of market barriers ... ... This acquisition by the brand leader in all segments of the sports industry in line with the company's multi-brand management strategy will not only help to strengthen the position of the sports brand of Li Ning, will also help Li Ning quickly Improve the integrated market share in the domestic sports brand market and enhance bargaining power.
However, although Li Ning has begun to take shape as a channel tycoon Belle model, but in the moment, its from a multi-faceted business, there is a small distance. "Li Ning is now in a multi-brand era, but from the performance point of view, the current diversification of the business is not obvious enough, or in the main Li Ning brand." In Zhang Qing view, Li Ning's multi-brand strategy can not Be successful, at least for now there is no sign of success.
In the first half of 2009, revenue from each brand contributed by Li Ning accounted for 92.2% of the Group's total revenue. In the second half of last year, revenue from newly added Double Happiness and Lotto accounted for 5.4% and 0.4% of total revenue of Li Ning respectively %; Ai Gao, the new move and Kason three total accounted for 2%.
"I think Li Ning is the one who has the best hope for music." Zhang Qing Although, despite the KAPPA guidance, the challenge for Lotto is still great. "KAPPA was put into the investment bank during its hottest 2008 Olympic Games Out of 5000 stocks, but also for the Li Ning and sports fashion called a wake-up call, after all, the fashion and the trend is the most attractive, but also the most vulnerable to the time 'rejection' of the lottery in China is still very weak , KAPPA would like to copy the success even beyond, the challenge is indeed not small. "In addition, Li Ning's other brands are more or less there is too much professionalism, the smaller consumer market and other issues.
Have to say, Li Ning's multi-brand road, still long.
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