Lining Was Misled By Misreading.

2011/1/5 14:45:00 80

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Li Ning Co

News frequently appeared in major financial media.

Due to the poor performance of the order in the second quarter of 2011, the Li Ning Co suffered heavy misreading of the media. For a time, Lining, the leader of China's sports apparel brand, was pushed to the cusp of the storm.

According to Li Ning Co second quarter 2011 fiscal year products

Order-placing meeting

According to the published data, the total value of orders calculated according to the retail price tag is the same as that of the same period in 2010. The average retail price of clothing and footwear products rose by more than 8%, but the number of orders decreased by more than 7% and 8% respectively.

If we calculate Lining's wholesale discount to dealers again, the total value of orders will be reduced by about 6% compared with the same period in 2010.

In sports apparel industry, this achievement basically means recession.

To cope with the adverse situation, the Li Ning Co quickly threw out a series of solutions, including integrating some poor performing stores, and promoting the growth of company performance by increasing the sales revenue of single stores.

The major financial media interpreted Lining's response as 500~600 shop.

Li Ning Co responded quickly to media reports, saying it was purely news.

Misreading

Lining's move is to implement an integrated strategy to allow more efficient and larger distributors or distributors who want further development to buy low efficiency distributors.

However, whether it is closed shop or integration, the problem behind Lining's misreading is still worth considering.