Once, it was a well-deserved industry leader.
Since 200 1 Beijing's successful bid for the Olympic Games, the national sports trend has officially struck. As a famous athlete, Li Ning is the best brand and the best advertisement. In a short period of time, Li Ning brand rose strongly, and stores opened all over the streets.
In 2003, the revenue of Li Ning Company exceeded 654.38+0 billion yuan for the first time; In 2004, Li Ning was listed in Hong Kong. In 2009, it exceeded 8 billion yuan, surpassing Adidas. In 20 10, it reached a peak of 9.455 billion yuan, only one step away from the 10 billion mark.
Once, it flourished and declined, and it fell to the altar and staged a V-shaped reversal.
20 1 1 year, Li Ning's profit shrank sharply, down 65% year-on-year.
In 20 12, the crisis began to spread, and the tide of closing stores began to detonate, with more than 800 stores closed each year.
In the three years from 2065438+00 to 2065438+03, the revenue dropped by 3 billion, and the former Olympic glory no longer existed, and the former industry leader was defeated!
Today, it has made a comeback and revived, and the announced corporate performance is eye-catching!
In the fourth year after 20 15 turned losses into profits, Li Ning finally reached his "10 billion Covenant" nine years ago.
On March 22nd, Li Ning released the 20 18 annual financial report. The data shows that its revenue increased by 18.4%, breaking through 100 billion yuan for the first time, reaching10510/00 billion yuan. Its operating profit increased by 74.4% to 777 million yuan, and its net profit increased by 38.8%.
After nine years, Li Ning finally realized his dream of breaking through 10 billion yuan in revenue, so how did Li Ning come back to life? Can you still be the first in the industry?
1
Product: Younger is not just a slogan.
Li Ning's rise benefits from the "time" of the rise of sports style, the "geographical location" of the rapid expansion of offline stores, and the "harmony between people" of the founder Li Ning's soul.
However, with the rapid expansion of the industry, there are more and more competitors. At that time, Li Ning lacked its own characteristics and its positioning was awkward.
Technically, it cannot compete with Adidas; In terms of innovation, it is not as good as Nike; In terms of price, it is not as good as Anta. After relying on the first-Mover advantage for rapid growth, there is a crisis of insufficient stamina.
Therefore, Li Ning began to change, first changing the slogan to "Make the Change" (let the change happen); And put forward the positioning of "younger", hold high the banner of "post-90s Li Ning" and sign Lin Chi-ling as the spokesperson.
I hope to seize the market taken away by other brands with the help of the strategy of youthfulness and branding.
However, the ideal is full and the reality is very skinny. First of all, from the perspective of consumers, the "post-90 s" at that time was only 20 years old. Where do they have enough strength to spend? Not only can't attract new customers, but old customers are also lost. It's really "not worth the loss"!
What's more, did Li Ning really achieve "rejuvenation" and "branding" at that time? Not much to say, there are pictures to prove it. Look at this old storefront, and you can only see how pale this slogan is.
With such outdated decoration, such old-school style and such chaotic display, do you really think that putting a label of "Li Ning after 90" can make the post-90 s like it?
However, today is different, and Li Ning is very different now!
In terms of store image, you can experience the great changes in the image of Li Ning Store after the brand-new upgrade, such as simple and fashionable design, scientific and technological display, attention to experience details, etc ... Even if there is no purchase demand before, people will want to visit!
In terms of storefront function, Li Ning's business format is also more abundant, not only as a shopping place, but also as a sports experience place.
Here, the clerk will provide professional body fat rate test and running posture test services for consumers, and give exercise suggestions to every consumer according to the data results. Shopping is no longer an act, but an attitude!
In product design, in order to truly understand the needs of young people and grasp their preferences, Li Ning's designers took to the streets and went deep into the campus to design products that young people like through in-depth observation.
For example, the "BADFIVE" series street basketball trend product line for young people has been greatly welcomed by young people.
In terms of product creativity, Li Ning will also cooperate with well-known stars and designers to integrate personal personality and fashion elements into products and attract attention with the model of joint products.
For example, Li Ning teamed up with Keenyhouse, the cartoon image of Claudia and her team, to launch Chao T and hat. Later, he cooperated with designer Zhang Chi to launch a limited-edition product of "Zhang Chi has a degree".
In the same year, under the craze of "Hip-hop in China" sweeping across the country, Li Ning and the rap brand GOSH also cooperated to sell customized shoes "Le is a foggy city"; He also signed GAI, a Chinese hip-hop champion, and launched joint sports shoes.
There is no weak market, only weak products. If you want to attract young people to pay for you, you should really create products that meet the needs of young people, rather than simply labeling them as "we are young".
2
Marketing: The most dazzling style is the national style.
What really detonated Li Ning was Li Ning's eye-catching performance in major international shows since 20 18.
Don't be Nike in China, be Li Ning in the world!
On February 7, 20 18, Li Ning landed at New York Fashion Week and released the "Enlightenment" series. This series adopts the most popular fashion elements, incorporates distinctive Chinese characters and nostalgic patterns, and brings the classic colors representing the China Olympic Games (scrambled eggs with tomatoes) to the show floor to show the Chinese style on the international stage.
National is the world's! This wave of "national wind" quickly caused a rush to screen, and everyone sighed, "Is this still the Li Ning I know?" The once "Yan Guan County" brand has now become so international!
On the day of the press conference alone, Li Ning's WeChat index soared by 700%, which was equivalent to the popularity of foreign street brands or joint publishing. Three days after the press conference, the total exposure of Li Ning's articles in New York Fashion Week exceeded150,000.
The pulling effect on enterprises is also immediate. The data shows that less than one minute after the press conference, many new products have been shown as "sold out" in official website; After Fashion Week, the market value of Li Ning also rose by HK$ 3 billion, and its share price rose by 50%, the highest in five years.
And the product itself, also set off a wave of buying frenzy, enlightenment shoes were almost fired to more than 1500 RMB, especially Li Ning Enlightenment 2, and even fired to the "sky-high price" of 4,000 RMB.
three
A big drama made Li Ning make a beautiful turnaround!
In fact, this caters to the demand of "cultural self-confidence" of Chinese people at present.
With the continuous improvement of China's economic level and international status, we need spiritual recognition in addition to the material level, so as to win the world's recognition of national culture by "going out" with China culture.
After Li Ning stepped onto the international show, it also triggered a round of "national tide wind". A series of clothing brands such as Taiping Bird, Mason and Bosideng have participated in the International Fashion Week. Even Guangyuyuan, an old-fashioned Chinese medicine brand, does not take the usual path and goes to show across the border!
With the joint efforts of many brands, "China Element" has become a new hot spot in the 20 18 international fashion circle.
Since the 20th century, China people have been chasing the world fashion trend for more than one hundred years. Finally, in recent years, domestic products from home are becoming a new international trend with the attitude of oriental trend.
four
Future: Will Ning still be the industry leader?
After the release of Li Ning's annual report, Li Ning himself was in high spirits in the face of the record of 10 billion revenues. On the 35th floor of Hong Kong Central Building, he set the goal of "China first, Asia first and leading the world" in public, which smacked of declaring war on Anta, the local boss, from a distance.
In the first few years, Anta was only the "younger brother" whose market performance was behind Li Ning. However, due to Li Ning's improper strategy, Anta surpassed Li Ning for the first time in 20 12, and Li Ning was seriously left behind. Now, Li Ning is making a comeback, so can he succeed this time?
Of course, we must admit that both Li Ning's younger products and its national fashion marketing have achieved certain results. However, it should be noted that the transformation and development of enterprises has always been a "long-term solution", rather than a "one season and two seasons" catwalk road.
First of all, in terms of products, Li Ning's R&D investment has been ranked at the bottom of the four major local sports brands in recent years. Its R&D expenditure only accounts for 2.2% of the total revenue, while Anta's R&D expenditure has accounted for more than 5% for many years.
We know that the product is 1 and the others are 0. If there is no real innovation, then no matter how fancy the product packaging is, it will not win market recognition.
Secondly, in marketing, although Li Ning led the upsurge of "Chinese style", it promoted the spread of corporate brands.
However, market hotspots are changing rapidly. Who can predict how long Li Ning's feelings will last? Now, some consumers have begun to worry, and Li Ning has gradually abandoned the basics, floating on the surface, and began to recharge with logo belief.
Finally, at the brand level, since the establishment of Li Ning brand, Li Ning has long relied on Li Ning's own image and emphasized the champion image.
However, a new generation of consumers' awareness of Li Ning is actually gradually weakening. They won't pay for the champion image. So if they want to continue the brand value, they still need to rely on excellent products to build their core competitiveness.
In short, the transformation and upgrading of enterprises has never been Xu Lai's idyll, which is neither easy nor lively. Not by one or two explosive products, one or two scenic spots marketing can do it, but by focusing on research and development, continuous innovation and solid products, so that enterprises can be in an invincible position.