Chapter 39 Chapter 10 Competition (9)

In 2006, "Li Ning" opened 924 new stores, bringing the total number of stores to 4,297, and Zhang Zhiyong is particularly proud of the fact that 1,889 of these stores are already the fourth-generation image stores of the fashionable and beautiful Li-Ning brand .Zhang Zhiyong is quite satisfied with the number of such stores: "These are the most direct weapons for us to fight against our opponents on the ground." In addition to store upgrades, Li Ning Company also needs to do a channel construction specifically for the first-tier market: open flagship stores.Beginning in 2006, Li Ning Company threw out the goal of opening hundreds of flagship stores, and began to advance rapidly.

At the end of 2007, on November 19, the flagship store of "Li Ning" in Wangfujing reopened after four months of renovation.This flagship store with four floors up and down allows more consumers to get a new experience of a sporting goods flagship store-for those consumers who test drive in a car 4S store and listen to music in a brand store, in the flagship store, "Li Ning "Introduced more experiential marketing that interacts with consumers.In addition to product display, there is also an indoor basketball court for basketball fans, as well as personalized embroidery machine services.Chief Operating Officer Guo Jianxin introduced the plan of Li-Ning Company: "The basketball court is not only a place for basketball fans to show off their skills, but also a venue for hosting Olympic star meetings and autograph sessions. On the occasion of the 2008 Beijing Olympic Games, there will be To provide consumers with more opportunities to interact with the athletes signed by the Li-Ning brand. These athletes will become members of the Li-Ning stores, where they will guide people to exercise better and healthier. An experience that has never been provided before. In the future, when the conditions are more mature, consumers can try new products in the experience area before purchasing, or immediately test the performance on the basketball court in the store after buying new shoes." Two months later, "Li Ning "Another unique flagship store in Shanghai has also opened.In fact, a flagship store is more of a marketing campaign for a brand company.Every store is a window for "Li Ning" to communicate with consumers.

The opening ceremony of Li Ning's flagship store is generally very lively, with Olympic stars gathering, and the low-key Li Ning himself never participates.But this does not prevent him from realizing the rapid growth of "Li Ning" brought by the channel, because he has seen his channel grow from zero to the largest number of domestic single stores in the past ten years.Li Ning Company is better able to control channels, rather than panic in the face of competition. On the other hand, the number of new stores of "Li Ning" is also increasing constantly.According to the 2007 financial report announced by Li Ning Company on March 18, 2008, the number of retail stores of "Li Ning" increased by 1,343 in 2007, which made the total number of retail stores owned by Li Ning Company reach the number one position. 5,676 homes.

This is not simply an increase in the number. In 2007, Li Ning Company further adjusted part of its retail business. Some self-operated retail stores were transferred to dealers for franchising. At present, the income of franchise stores in the domestic market accounts for 80%, and the directly-operated stores Revenue accounted for 16.8%.While adjusting the industrial model, "Li Ning" has further increased its possession of the East China market. In 2007, the percentage of Li-Ning brand's total revenue in the eastern market rose from 26.4% in 2006 to 39.1%, which shows its strength.

Therefore, the assumption of "the confusion of Gome" is not true for "Li Ning".As a brand provider, rather than a pure manufacturer, the emergence of channel giants will not bring the nightmare of domestic home appliance companies to sporting goods manufacturers.On the contrary, all links from production to sales are now stronger. To use one of their advertising slogans, "Li Ning" now only needs to "be a better self". Li Ning's asset scale expansion has been relatively stable over the years, while Anta and Dongxiang have experienced rapid expansion after their listing in 2007. From the return on net assets, it can be seen that Li Ning's operation is stable and the efficiency of asset utilization is constantly improving. In 2007, the profitability of Li Ning Company using existing capital was much higher than that of Anta and Dongxiang, and it was more likely to be sought after by investors in the stock market.Anta and Dongxiang tended to maintain a relatively high level when they were small in scale, but they plummeted after their listing in 2007. This is related to the increase in asset size in the initial stage of listing and the investment has not yet reached the harvest period.

Li Ning's asset utilization is relatively stable and efficient, while the asset turnover rate of Anta and Dongxiang has declined rapidly, which is related to the rapid expansion of its assets.