Li Ning: From peak to "crazy"

The Li Ning brand may have encountered all the problems encountered by the sporting goods industry.

The departure of senior executives, overstocking, profit warnings, falling stock prices, and doubts about the transition to real estate.

In a murmur of doubt, Li Ning was distressed but failed to get rid of mud.

Look at its bad performance last year: The financial report shows that Li Ning realized operating income of 8.92 billion yuan last year, a decrease of nearly 500 million yuan over the previous year; stock price shrank more than 60% in the past year, production costs have not been effectively controlled, The total of distribution expenses and administrative expenses increased by 3% from the previous year to RMB 3.223 billion.

In any case, this is not like the "one brother" of the sporting goods that once threatened to "break through 10 billion in annual sales." It is not unreasonable to look at the path to change the "first brother". In recent years, the Li Ning brand has been born on the one hand and has grown up on the mainland. On the other hand, it has to break the constraints of the local community and become a world-class brand. This is not an easy task.

Before the good economic years, such as 2010, benefit from the economic development, Li Ning Company maintained rapid growth. Recalling the successful marketing of the Olympic Games in 2008, Li Ning’s holding a torch around the opening scene of the Olympics still leaves many people in the picture. At that time, this brand began to grow crazy from the top.

In the context of competition in front of the enemy and behind the pursuit of the soldiers, it had to be mad. On the one hand, in the past few years, after the ranking of domestic sportswear shares was surpassed by Nike, Li Ning lags behind Adidas.

Although the brands that have returned to the market have regained one game through the 2008 Olympic Games, Nike and Adidas have not suffered from the negative impact of domestic sportswear brands when the development of the industry has become a bottleneck. With a strong brand, Li Xiong has become the first and second-tier cities, allowing these two international "crocodiles" to lose no time in extending opportunities to more remote third and fourth-tier cities.

On the other hand, sports brands from Quanzhou collaborated against Li Ning. Anta company personnel once disclosed that "the biggest comparative advantage of Quanzhou brand comes from a rare complete industrial chain, cost advantages, product cost-effective, channel control power is not worse than Li Ning."

Under the pattern of internal and external hardships, Li Ning’s operating income remained the top spot among local sports brands last year. However, the net profit is less than half that of the Quanzhou brand, and the comparison of this data with Anta is even more miserable. Last year, Anta’s net profit was 4.48 times that of Li Ning.

Li Ning, who has made every effort to solve the problem, has already lost the absolute advantage of “one brother” in terms of inventory, capital turnover, and development of the main business. Therefore, it is not difficult to understand why the market will believe Li Ning will really enter the real estate industry. In spite of this, Li Ning was denied by himself.

However, the real significance of the incident is that in the eyes of some pessimists, Li Ning may have changed from peak status to "madness."