Did Lining Really Go Wrong?

The company lost nearly 2 billion in 2012.

2014 loss in the first half of 590 million.

And in the near future, Lining sold more than Adidas in mainland China in 2009.

At the end of June 2010, Lining put forward the plan of "brand remolding" and made the choice of new customers of "90 after Lining". It turned out that this is just a wishful thinking without market verification.

Lining has been competing with ADI and Nike in the face of pressure to make changes to meet the post-90s, but the price is too high and the design is not new. In the field of technological innovation, there is no accumulation of deep tillage and meticulous work. It is expected that the new consumer groups will agree that Lining is an international first-line brand.

Lining's business pformation began in 2010, which involves positioning the post-90s, stepping into the international market and multi brand management. It was originally a strategic plan for step-by-step operations, but experienced the shock of management level and the cliff style decline of channel orders.

The reason why enterprises want to pform is that they may be forced by the environment or have their own desire for sustainable development, but fundamentally speaking, they are still trying to create new customer value.

Although Lining seems to have a new "customer choice",

The group did not buy it, because they did not see the value, or Lining was not their "dish".

It is impossible to convey the value. It shows that pformation is not a simple step. Transformation must be based on the discovery of market opportunities and the continuation of its own advantages. It is a new logo and a cool slogan.

"The 90's consumer group" is the market opportunity Lining sees. But where is Lining's advantage?

1, Lining brand and 70, 80 after users emotional maintenance.

2, the distribution network is relatively perfect.

3, sponsoring a number of sports events, brand image to maintain standards.

4, there are price advantages in the middle and high-end market, with the advantages of design and technology in the middle and low end market.

If Lining can combine the above advantages with the pformation direction in the business mode design, the present situation will be quite different.

In fact, the product price is too high, the brand image is not prominent, and the sports sponsorship is costly, but the brand management and maintenance work after the game can not be effectively followed up; the brand lacks effective communication with the target consumer group, and the actual consumer group and the target consumer group are misplaced.

From the operational level, the pformation of enterprises must link the new business with the original business in order to ensure a smooth pition. Here is the test of the value process of the enterprise, that is, whether the operation mode is efficient, and whether there is enough cash flow to support the expansion of new business.

And Lining's inherent value process relies heavily on the dealer system.

It also hoarded a lot of stock. In the past, when the market environment was excellent, this inefficient mode was not under great pressure. When the market competition intensified and the international brand worked, Lining's products were backlog on the sales side, which directly caused the shortage of cash flow.

Business people's desire for performance keeps inventories increasing until they can no longer afford to burst. The collapse of a cliff like performance is not surprising. In fact, all of this is not without signs. It is not known whether internal managers concealed a lot of stock information.

In short, the old channel mode has brought down Lining.

Lining's multi brand operation and international business surge were also launched in order to find more customers and new profit margins. The problem is the multi line operation under the inefficient operation system of Lining, which completely does not match the development of new businesses, and failure is inevitable.

The original business has no cash flow, the new business is unable to continue, and the new and old businesses are not profitable. How much is this pformation?