Shoe Brand Lining Has Been Bought? What Should I Do?

At the end of 2010, the stock price of Li Ning Co, a famous sporting goods company, plunged sharply, its market value shrank by nearly 5 billion, and its total market value dropped to more than 160 billion.

The low price of stocks may be a turning point, leaving vast space for investment institutions and those unwilling to mediocrity.

In the era of capital and intellectual capital, enterprises are no longer limited to snowball production and expansion of scale reproduction mode relying on their own strength. The supernormal development mode seems more powerful.

Mergers and acquisitions play a leveraging role in the ultra conventional development mode.

Because mergers and acquisitions can quickly acquire resources such as market, technology and information, make the industrial chain more complete and synergistic effect more obvious; M & A can absorb each other's advantages and give full play to the advantage of scale effect.

In addition, mergers and acquisitions can widen the gap with competitors.

Throughout the history of enterprises, there is no precedent for enterprises that rely on mergers and acquisitions to become industry leaders.

The media predicted that the shoe industry brand Lining might be on the road of being bought by the trend of the development of the industry and the current stock price. May as well imagine that, assuming that Lining is being bought, what are the possibilities of China's sporting goods industry? What is the pattern of China's sporting goods industry?

How about Baocheng international Lining association?

Baocheng international is a listed company in Taiwan.

From the perspective of industry chain, Baocheng international can integrate the advantages of design, manufacturing and sales, but it still lacks the brand advantage of the product. Lining brand has wide popularity in mainland China and even the vast majority of Chinese regions, which can make up for Baocheng's demand for product brand resources.

At the same time, Baosheng sports advantage in the channel can enable Lining to consolidate the channel advantages in the second tier cities, and also increase Baocheng's more voice in the Cooperation Dialogue with Nike and Adidas, so that Baocheng can turn from a manufacturing and selling sporting goods manufacturer to a vertically integrated enterprise integrating sporting goods brands, manufacturers and distributors. China and the world's sporting goods industry will add an awesome new opponent.

Nike or Adidas and

Nike's popularity in the sporting goods industry is well known and needs no introduction.

Nike is a typical American company. Nike has gained a lot in the way of mergers and acquisitions to expand the market.

The acquisition of us brand CONVERSE and British brand UMBRO has consolidated Nike's leadership in the market while enhancing its competitiveness in the two segments of canvas shoes and football products.

In 2008, affected by the financial crisis, the share prices of many listed companies went down, listing in Hongkong, and Lining's share price was not very satisfactory. The legend about Nike's acquisition of Lining was very popular.

However, in 2008, the entire sporting goods unit was unsatisfactory, and Anta's share price fell to about 3 yuan. During this period, Nike did not sell, and perhaps had his own reasons.

At present, Nike has no advantage or advantage in the two or three tier cities. Lining has strong competitiveness in the two or three tier cities. The two or three line cities occupy 65% or even more of the total revenue of Lining. If Lining can be included in his sequence, the advantage of Nike in the Chinese market will be hard to shake. While his old rival Adidas will be attacked by Nike and Lining, the situation is worrying.

Adidas is also an old brand of sporting goods. Its business history is even longer than Nike. But after the rise of Nike, Adidas turned from the leader to the catch-up.

Adidas has been looking for opportunities to narrow its distance from Nike, or to exceed Nike, and Reebok is one of its important initiatives.

In the past, China was the world's factory. Now, China is the world market. More and more foreign enterprises are looking at the huge consumption power of the Chinese market.

In China's sporting goods market, the market share between Nike and Adidas is not obvious. If Adidas and Lining join forces, then Nike's weak advantage will no longer exist. Instead, it needs to figure out how to rush out of the encirclement of Adidas and Lining.

Lining is big enough. Nobody wants to see Lining standing on his opponent's side.

Is it possible for Anta to ally with Lining?

Not long ago, a writer said that if asked a few years ago, who is the biggest sporting goods company in China, it must be a blank question. If the answer is not unexpected, it will be Lining. But now, if you want to ask who is the biggest sporting goods company in China, it must be a multiple-choice question. A is Anta and B is Lining.

At present, in the Hongkong stock exchange, Anta's market capitalization is about 30000000000, and Lining's market value is less than 20 billion. Anta is becoming a benchmark for Chinese sporting goods companies.

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As the largest two sporting goods companies in China, the growth path of Anta and Lining is quite different.

Lining is a star, Anta is grass roots; Lining is light asset operation mode, Anta is a vertically integrated mode of operation; Lining likes to win a surprise game, Anta is a very conservative.

Perhaps a lot of friends will think that Anta's acquisition of Lining is very unreliable. There are many overlaps between Lining and Anta, and there are not many places to borrow from each other.

However, I believe that if Lining stands on the Nike side or the Adidas side, it is bound to form a strong pressure on Anta. Instead, Anta and Lining can join together to warm up, form a strong barrier in the existing market, bring strong resistance to Nike and Adidas in the two or three line market, and also resist the attack of other followers.

The two or three line market is the base of the domestic sporting goods brand. Most dealers of Lining and Anta hold the best quality store resources in the two or three markets in the north and the south. These are the main income guarantee for Lining and Anta. The alliance between Anta and Lining will integrate these channel resources effectively. In the Chinese market, the era of Chinese brands will take the lead.

Far away from big sports

Perhaps the hypothetical list of Lining's acquisition can also list several others, whose roles are more than those of manufacturers, channels or brands.

Lining's acquisition is just a hypothetical idea. Imagine that the Chinese with national feelings would like to see the flowers of Chinese brands on the other side?

Integration of special sports and Lining

Some of Lining's stock market turmoil has been attributed to the causes of the channel, some of which are attributed to the reasons for brand positioning, some of which are attributed to the reasons for the extraordinary sports alliance.

In fact, the market share of Lining in the north is obviously higher than that in the south. That is to say, the single store output in the north is obviously higher than that in the south. There is basically no blank market in the north and south of Lining. It is not easy to continue to rely on the new shop to drive the fast growth of performance. How to improve the output of inefficient stores has become a key issue. Lining official agrees and encourages the integration between franchisees and franchisees, so that the franchisees with business ability can make the inefficient market bigger and stronger, but this will inevitably lead a few franchisees to withdraw from the Li Ningjia alliance system.

From the point of view of closing shop, Lining is deliberately adjusting its channel structure, with the support of strong and faithful channel partners. It is beneficial to push forward the breakthrough of Lining's "sub brands" (such as Lotto and Lining children's clothing) in the terminal market, so as to realize the fundamental pformation of "narrow Lining (single brand") to "wide Lining (multi brand)" on the channel.

As for the extraordinary sports, he seems to be out of the old line of environmental protection industry, want to do China's IMG, sports real estate, sports brokers, sports marketing and even the entire sports industry can be extraordinary, he and Lining together is to take advantage of Lining's advantage in sports circles.

The people of Li Ning Co have never been short of good ideas, but they seem to lack good patience. In addition, Lining is too wide, AI Gao and new move. Apart from letting Lining's brand list be too long, it seems that it has not brought any special advantages. Often, there are more than zero before.