Chapter 23 Chapter 8 The World Is Flat (8)

"Frankly speaking, in the past few years, we have not done large-scale planning in terms of internationalization." Wu Xianyong admitted in an interview with "Chinese Entrepreneur" in the first half of 2006. One of the most obvious reflections.In fact, market competition forced Li Ning to reflect, "We are making some adjustments to our internationalization strategy." Wu Xianyong revealed that at the end of 2004, Li Ning made some adjustments to its international market strategy and decided to "build an international brand first." , and then open up the international market."One of the reasons for this decision is: "This approach is different from the low-price dumping methods of other Chinese companies. We hope to increase the added value of the brand first." Correspondingly, in the semi-annual financial report of listed companies in the first half of 2005 , Li Ning's revenue from the international market is only 1.3%, while this figure was 2.4% in the same period in 2004.Compared with the turnover in the first half of 2004, the first half of 2005 achieved a growth of 40.3%. It can be seen that its international market began to shrink during the same period.Li Ning Company's 2006 annual financial report shows that in 2006, sales in the international market only accounted for 1.1% of the total turnover.It can be seen from this that Li Ning has basically given up its efforts to expand overseas sales so far, and has turned to strive for the domestic market with all its strength.

Shrinking overseas markets has become an extremely critical turning point for Li Ning Company on the road to internationalization: abandoning the international market and focusing on international brands.Like all Chinese companies actively exploring internationalization, Li Ning Company gradually got closer to the answer of "internationalization" as things progressed and the market reacted. Since 1999, Li Ning has been exploring for a long time. At this time, "Li Ning" clearly gave up the internationalization of the market, and clarified its only goal of "brand internationalization first". That is to say, the Li Ning brand should become an international brand. mainly in China. In 2006, "China Business News" interpreted the transformation of "Li Ning" with "Li Ning: International "Fresh Keeping" Post-80s".Young consumers in China need international sporting goods, which is exactly what "Li Ning" needs to provide.In this way, after several years of shouting about internationalization, "Li Ning" really understood what internationalization means for his company and how to operate it.

Until the beginning of 2007, Zhang Zhiyong clearly pointed out the company's deepening understanding of internationalization to the media: "If you can't even beat your opponents in the local market, you can imagine what will happen when you go abroad." Zhang Zhiyong said, Li Ning Company In order to really go global, the core competitiveness formed in product innovation and brand marketing must be strengthened, and the financial situation must be better. "It will take a certain amount of time to accumulate."Only by becoming a regional brand first can it become a global leading brand.

At the end of 2007, Zhang Zhiyong clearly pointed out in an interview with the "Economic Observer" that "China is a highly internationalized market. To a certain extent, China is the world, and the local market will always be our most important market."So far, Li Ning Company has implemented its own internationalization process and direction step by step, and finally moved from "Six Up" to "Seven Up". In this process of exploration, there may be detours, but the positive exploration has rewarded the company: the business has not stopped growing, but has become better.The market has affirmed the achievements of "Li Ning": At the end of 2006, the good news from the capital market was that international investment banks, including CLSA, ABN Amro and Merrill Lynch, gave Li Ning a "buy" rating almost simultaneously .

In fact, the learning path of internationalization is so long and complicated that Chinese enterprises are faced with a steep "learning curve". No matter what form they take, it is bound to be difficult. And those companies that are most likely to go global are also most likely to appear among these difficult forerunners. The international market for fashion efforts is the Chinese market.In this market, "Li Ning" is facing such a group of consumers: they use MSN, QQ and other instant messaging tools, watch You Tube, Tudou, use Google Earth to find maps and order meals on Fantong.com.They may be fans of Han Han or Guo Jingming, or contribute hits to the blog of actor Xu Jinglei, whose hit rate has exceeded 150 million. They are familiar with NBA stars, and they discuss their collections with "sneaker geeks" in Europe and America on the Internet. sneakers.They have the youth that grew up with the Internet.

Known as "Generation Y," they include those born between 1982 and 2000.They live with praise and coddling from infancy, and they are always lovingly cared for by their parents until they grow up.They have high expectations of themselves and want to be extraordinary.They know they are unique, and they need unique style - if they can't do it themselves, they want product packaging to help them do it.