"The headlines are the first to be released, thanks for the tasting. Before reading, we sincerely invite you to click "Follow" in the upper right corner, so that you can continue to provide you with high-quality content, and it is also convenient for you to participate in discussions and exchanges, and your support is the source of power for our creation!
- Source/Brand Officer
- Author/Brand Officer
When Li Ning announced that it would spend 2.208 billion yuan to buy a house in Hong Kong, investors had already begun to "plant and fight."
The day after the news was announced, Li Ning's share price fell 14.29%, and the closing price of the day was HK$17.88, the lowest in two and a half years.
Compared with January this year, Li Ning's market value has evaporated by about 165 billion yuan.
It is equivalent to the loss of 0.67 Adidas, 0.88 Anta, 23 361 degrees, and 68.75 million sets of "eight ga coats".
Li Ning announced its financial report and collapsed.
Li Ning closed 155 stores and collapsed.
The e-sports team LNG sponsored by Li Ning failed miserably and collapsed.
Any move can make the stock price "avalanche", and the attitude of the capital market towards Li Ning is obviously pessimistic.
01. Li Ning, let consumers get out of their comfort zone
The former Li Ning was the "pride of the national tide" and the eternal feelings of the 2008 Olympic Games in the hearts of many people.
Now when it comes to Li Ning, "Baga Suit" has become a lingering "black history" for Li Ning.
Regardless of whether Li Ning is related to Japanese capital or not, it cannot erase the public's speculation about the relationship between Li Ning and Japan.
Jinmailang once accepted the capital injection of the Japanese instant noodle company Nissin, and the subsequent relationship between the two sides has been dissolved, and it is still inevitable to fall into a public opinion storm.
Up to now, even if the "People's Daily" has come to clarify: Jinmailang is not a Japanese company background, there are still many netizens who stubbornly "beat" Jinmailang into a Japanese-funded enterprise.
It's the same with Li Ning.
As early as 2016, when Li Ning fell into a financial crisis, it was the Ministry of Finance that took action, and the prefix of "China Li Ning" shone brightly.
But when the reputation of this "national brand" collapsed, Li Ning's former filters fell to the ground.
Although after being caught in the "Baga" turmoil, all kinds of "conspiracy theories" from netizens seem a bit groundless.
In the end, the result was that Li Ning and his relatives were still the top three shareholders of the Li Ning brand, accounting for more than 30% of Li Ning's shares.
And the Japanese-Chinese CEO has no name among the shareholders of the Li Ning brand, and he has been in office as early as 2019, so he can't show his feet after three years.
But it is difficult to recover the reputation if it is stinky, not to mention Li Ning's "-stirring stick" general public relations level, which directly raises the complexity of the matter to a higher level.
It stands to reason that Li Ning invited a Japanese Chinese who had worked at Uniqlo to learn Xi Uniqlo's marketing and management experience.
But looking at Li Ning's official response, the level of this manager may be a little watery.
In the past, there was an e-commerce general manager, and consumers had no culture.
Later, the chairman of the board of directors "strongly supported" his own "Baga" design.
The main one takes consumers out of their comfort zone.
It's been 1 year since the incident, but the Internet has a memory.
Recently, a military coat of 50 yuan has become a "fashion item" for young people overnight, and the "Li Ning Baga coat" for 2,400 yuan has been pulled out and "whipped" again.
The 2,400 yuan "traitor" is matched with a high climb, and the 50 yuan body is my roots.
02、李宁跌倒，安踏吃饱？
Li Ning's dream of taking the high-end route was already there when it was first established.
In the past, Li Ning, every time he went out of the circle, he was working hard for "high-end", and often the marketing was successful, but when he wanted to catch this "pouring wealth and wealth", he was disappointed.
In 2008, when the whole country was paying attention to the Olympics, Li Ning, the "Prince of Gymnastics", lit the main cauldron of the Bird's Nest.
At this time, the Li Ning brand and its founder were in full swing.
The pride of the Chinese people in the brand and its founder, Li Ning, has risen spontaneously, and Li Ning's sales have also increased repeatedly.
At that time, the two foreign brands, "Yigou" and "Sanjokong", dominated the high-end sports market.
Li Ning, which has a certain popularity base, began to impact the "foreign brand", using the old method: inviting many well-known stars and sports stars to endorse.
Of course, the endorsement fee is also paid by consumers, and the price of Li Ning is of course correspondingly benchmarked against high-end brands.
Perhaps the root cause has been planted here, while ordinary brands cater to consumers, but Li Ning tries to educate consumers.
The price of clothes and shoes, which is not cheap, suddenly rises, and consumers certainly don't buy it.
That year, Li Ning's inventory piled up, with a loss of up to 3 billion yuan, and it lost its leading position in the domestic sports brand.
Taking advantage of this opportunity, ANTA has successfully ascended to the position and become a leader in the industry.
Domestic sportswear and shoe brands have achieved a certain level, and it is normal to want to enter the high-end.
Anta, the current leader of domestic sportswear and footwear, is to "save the country with curves" and transform through the acquisition of high-end brands.
There was Fila in front and Archaeopteryx in the back, and falling in love with the middle class of Archaeopteryx turned "wearing birds" into a kind of faith.
And Li Ning's choice is to be "independent and self-reliant" and speak for himself.
There is nothing wrong with this route, but the iron still needs its own hardness, and Li Ning wants to take the high-end route, so do a good job in clothing design and quality.
But now it seems that the way Li Ning chose once made the Chinese people "blood boiling", and now it seems that it may be a "flash in the pan".
In 2018, clothes printed with the logo of "China Li Ning" appeared at New York Fashion Week, which ignited the patriotic feelings of the Chinese people.
Consumers' enthusiasm for Li Ning has skyrocketed again, and they feel that Li Ning is good again.
But after Li Ning appeared in the fashion week, the price of clothes and shoes rose again, and compared with the original, the only thing that was more was the big "China Li Ning" logo printed on the clothes.
When Chinese people go abroad, they don't find any foreigners wearing Li Ning at all.
Relying on the feelings of the Chinese people to "soar" is certainly a shortcut, and it is also a shortcut that only Li Ning, who was once an Olympic champion, can take.
But once the road deviates, the "backlash" will also be heavier than that of ordinary brands, and the reason why the "Eight Ga Outfit" incident caused such a bad response is also due to this reason.
03, expensive, is not the reason why Li Ning's decline is fully revealed
In the past year, the decline in Li Ning's stock price may not be a problem of "eight gaga".
Adidas, which once "collapsed" completely, performed well in Greater China in 2022, reversing the previous downturn and increasing by 16.4% year-on-year.
Adidas successfully turned the tables, but Li Ning is still being judged domestically?
In the final analysis, Li Ning's "orthodoxy" is still in China, and consumers can't be harsher than Nike, Adidas and the like, right?
This year, China's apparel market can be called a comprehensive recovery.
Whether you're selling jackets or down jackets, high-end apparel or FMCG, OEM or tail orders, you'll find your place in the thriving apparel market.
Although Li Ning's "eight-ga suit" was sold for 2,400 yuan, a baseball uniform cooperated by artists was 2,000 yuan, and a pair of racing shoes was 2,300 yuan, the monthly salary of 3,000 yuan was really unattainable.
But compared with other more expensive brands, it is still a small case, and the price of Li Ning may not be the fundamental reason why the market is not optimistic.
The domestic Bosideng down jacket was sold for 7,000 yuan a piece, but from April to September this year, the revenue increased by 25.5% year-on-year.
Uniqlo is suspected of meeting the sales target in Greater China ahead of schedule and raising wages for employees.
ZARA, a fast-fashion clothing brand that costs two or three hundred yuan a piece, saw its net profit increase of 40.01% in the first half of this year.
Not to mention, among the top 6 sportswear shoes in the domestic market, including the sportswear and shoe brands of Adi and Nike, except for Li Ning, the income has skyrocketed.
Only Li Ning fell behind and fell into the dilemma of "increasing income but not increasing profits".
Li Ning's third-quarter financial report was released, and the revenue from July to September this year showed good results, with a full 14 billion yuan, 13% more than last year.
However, the net profit was slightly 2.112 billion yuan, a decrease of 3.11% over the same period last year.
Well, the next day after the release of the financial report, Li Ning's market value plummeted by 16.5 billion yuan.
04. New opportunities overseas?
This time, the main reason for the flash crash of Li Ning's stock price was Hong Kong's purchase of a subsidiary of Henderson Land.
The company is not the focus, the focus is on a building under the company's name, located in Causeway Bay, in the heart of Hong Kong.
The 24-storey building, covering an area of about 883 square meters, is rumored to be the headquarters of Li Ning in Hong Kong.
However, the Hong Kong property market sentiment index has fallen for 16 consecutive weeks, hitting a six-year low.
According to the psychology of the Chinese people of "buying up but not buying down", in their opinion, investing in the Hong Kong property market at this time may be copied to the bottom, or it may be copied to the bottom halfway up the mountain.
Li Ning's wave doesn't look like a profitable business after all.
Some netizens pointed out that under the current tense economic situation, Li Ning himself is "not profitable", and he still wants to buy a house in Hong Kong?
Some radical netizens called Li Ning's action "enjoyment consumption".
However, looking at Li Ning's strategy, setting up a new headquarters in Hong Kong may be to better go to sea.
Once, when it came to Olympic sponsors, the first thing that Chinese people thought of must be Li Ning.
From the 1992 Barcelona Olympics in Spain to the 2004 Athens Olympics, Li Ning has always won the medal uniforms of the Chinese team.
Although Li Ning in 2008 did not compete for Adidas, because of the torchbearer Li Ning himself, the final limelight was stolen by Li Ning.
In 2009, Li Ning began to go overseas, but instead gave the opportunity to Anta.
The medal uniforms for this year's Asian Games were contracted by Anta.
There was a "shareholder" who was aware of everything, saying that next year will be the London Olympics, and now that Li Ning's stock price is decreasing, someone is deliberately shorting, and he will be able to make a lot of money next year.
Indeed, at this year's Hangzhou Asian Games, Li Ning shook hands and shook hands and other sponsorships, and the stock price did rise slightly.
The Hangzhou Asian Games will be held from September 23 to October 8, and after that, Li Ning's stock price has risen in a short period of time.
However, the overall decline of Li Ning has not decreased.
Even if Li Ning can win the sponsorship, it will no longer be able to cause the sensational effect of the 2008 Olympic Games.
The only new growth opportunity may be to go overseas.
Li Ning lost market position in the Games, and they seem to be trying to regain it in Southeast Asia.
In this year's Asian Games, Indonesia's badminton team, rattan team, and India's badminton team all signed contracts with Li Ning.
If this opens up the Southeast Asian market, then the new headquarters set up in Hong Kong, this new transit station, will undoubtedly help Li Ning go abroad.
Long before Indonesia, Li Ning has been exploring the Cambodian market and has set up a brand flagship store in the largest shopping mall in Phnom Penh, Cambodia.
Perhaps also for the layout of Southeast Asia, Li Ning has also built the ASEAN Li Ning Center in Guangxi, and it is expected that the output of clothing and shoes will reach 25 million pieces in 2026.
It can be seen that Li Ning is imperative to open up overseas markets.
Li Ning, who is trying to educate consumers, can't educate domestic consumers, but can go abroad to become a foreigner's "foreign brand" and educate foreigners, maybe there will be a new "miracle".
What do you think about the plummeting stock price of Li Ning? Welcome to leave your opinions and opinions in the comment area.
#文章首发挑战赛#
Due to the rules of the platform, only if you have more interaction with me (likes, comments, shares, favorites), you will be recognized as a fan. If you like my articles, you can click "Follow" to receive more good articles push @Brand Officer