The Labor Pains Brought By Lining'S Brand Relocation Will Continue.

2008 domestic sports brand Boss Lining Stimulated by the unprecedented good results of the Beijing Olympic Games, operating revenue increased by 53.8% to 721 million yuan. Since then, the growth rate of Lining's operating income has continued to decline, and it has changed to negative by 2011. In 2012, Lining was even more turbulent. First, the core executives were leaving. In February 7th, Lining released a notice of layoffs. For a while, news media and industry colleagues expressed concern and confusion about the future of Lining, the brand of the domestic sports brand, and said that his dream had been stranded. In Shenzhen, one of the largest sporting goods consumer markets in the country, how does Lining operate? Is it really as the media says, "the dream has been stranded"?

Sales decline is a fact.

In February 23rd, reporters visited Lining stores in several major business circles in Luohu District. The popularity of the store is good, but there are few customers in the store. A store manager told reporters that February is the traditional off-season sales of sporting goods. She said that the news about the company's layoffs and executives' turnover was not known: "for the stores, layoffs and executive turnover have little impact on us. We are most concerned about sales performance. But it's true that sales slipped over the past two years. The head of a department store also confirmed to reporters that since the beginning of 2010, Lining's monthly sales have been declining: "in the past, Lining's sales in the field can be ranked around five, and now it has been hovering in seven or eight places, slightly better than Anta, in short, it has been going downhill." Lining, one of Shenzhen's agents in Fu Jianguo, said in an interview that the whole industry of sports apparel was declining in 2011, and both international and domestic brands were not spared. Fu Jianguo told reporters that the sales data of Zheng Hao sports agency's international brand Kappa dropped even more. Lining: "this year's economic situation is not very good. The competition for domestic brands is fierce. Many domestic brands blindly open shop expansion, resulting in some areas rents rose again and again, coupled with this year Shenzhen has raised the minimum wage, labor costs continue to rise, so let's not see a lot of brand stores, many shops are running at a loss. For layoffs, Fu Jianguo expressed another view: "Lining should have laid off." Fu Jianguo said, "many departments of Lining have no effect in the actual operation. This layoff can reduce some of the costs and is beneficial to dealers."

The throes of brand relocation

Will continue

In 2010, Lining made two moves: first, the opening of new LOGO and brand slogans; two, to enhance brand positioning and improve product prices. The new brand slogan "Make the change" refers directly to the target consumer group after 90 years, and the Lining products after raising prices have almost realized "zero price difference" with the international first-line brand products such as Nike and Adidas. After repositioning the brand, Lining added more bright colors to the product design style and made the product younger. However, this did not win the hearts of the post-90s. Reporters to Shenzhen's major Lining stores salesmen understand: Lining's main customer group is 25-45 years old, after the brand repositioning, did not attract more consumers after 90. Instead, the original faithful consumer sentiment has rebounded. "Lining now has little difference from ADI and Nike. Before buying it, it felt that it was supportive of China and was relatively economical. There is no reason to buy it now. Besides, Lining's shoes are very fancy now." Liu, 25, said in an interview with reporters. Reporters at the East Gate pedestrian street, Anta, 361, and other low-end brand strategy is attracting many post-90 migrant workers to stop. "Now 90% of the better family, from childhood to ADI." Nike The growth of consumer education is not a factor for them to consider. And the working class has just come out of society after 90 years, and the price of Lining is not very attractive to them. Mr. Liu added. As an agent of Lining, Fu Jianguo also admitted that there were certain differences and conflicts between the adjusted brand positioning and the actual consumer groups, which also hurt some loyal consumers. "But after 90 is the main consumer in the future, brand adjustment is certainly not a step in place. Now that we insist on training the market, this situation will gradually get better.