Original, no handling, violators will be investigated!Before reading this article, click "Follow" in the upper right corner, which is not only convenient for you to discuss and share, but also can bring you a different sense of participation, thank you for your support!
** 007 of the brand world
Author 007 of the brand world
On December 11, Li Ning's Hong Kong stock openedHit 10%., as of ** down 1429%，Newspaper 18HK$3 shares。In one day, the market value of Li NingIt fell by 8 billion, the lowest level since March 2020
It is obviously the "first brother of the national tide", and the slogan of "China Li Ning" is even more deeply rooted in the hearts of the people, but why is it so?
The direct cause is related to an announcement.
The night before the stock price plummeted, Li Ning announced that it would plan to use its indirect wholly-owned subsidiary, High Match Limited22.HK$0.8 billionAcquisition of Henderson Land, also located in Hong Kong stocks, a company mainly engaged in property investment.
The company's main asset is a building with 22 floors of commercial office space and two floors of retail space. As for the purpose of the acquisition, Li Ning only mentioned that "part of it will be used as the group's headquarters in Hong Kong", and said nothing else.
Indeed, Li Ning's decision to set up its headquarters in Hong Kong is an important milestone in its internationalization process, but the acquisition of the entire building inevitably makes people think a lot
In the second half of this year, the Hong Kong property market continued to decline, so no matter what the purpose of the HK$2.2 billion property purchase event was, it not only deviated from the main business, but also was too far away from investors, and the stock price was of course.
In fact, now everyone is no longer surprised by Li Ning's sharp fallBecause since the beginning of the year, the market value of Li Ning has fallen by 150 billion Hong Kong dollars, a drop of more than 7%.
If fromFrom the peak of HK$280 billion in 2021, it has fallen by 85%, and now there is only a market value of more than HK$40 billion, less than a fraction of the peak.
At the same time, consumers' attitudes towards Li Ning have also changed significantly.
From the original first brother of Guochao to the later "I take Li Ning as a domestic product, and Li Ning takes me as a big Zuo", the collapse of Li Ning's market value and performance is also the collapse of its reputation.
If you want to answer this question, it is necessary to understand how Li Ning reached the peak in previous years.
In 2018, with the rise of the national tide, Li Ning seized this concept and launched the national tide products, which became popular in the market. At New York Fashion Week that year, the Chinese character elements of "China Li Ning" and the distinctive color scheme of "tomato scrambled eggs" made countless people refreshed.
Source: Weibo.
Consumers flocked to it, related products were sold out for a time, and Li Ning became a god in a war, completely establishing its image as "the first brother of the national tide".
From this moment on, the four words "China Li Ning" have also become popular all over the country, and the sub-brand of "China Li Ning" has become a sharp sword for Li Ning to rush to the high-end, successfully helping Li Ning break through the 10 billion revenue mark that year.
However, consumers' enthusiasm to follow the trend will always be cold, as the concept of national tide is no longer fresh, Li Ning's performance growth and stock price both fell into a bottleneck period, but or God favored, Li Ning soon ushered in its peak moment.
In March 2021, Nike, Adidas, H&M and other brands issued announcements to boycott Xinjiang cotton, the reason for which they were so-called obedient to the quality control of forced labor in Xinjiang by the West, so they agreed with and joined the boycott of Xinjiang cotton.
In the face of the West's suppression of China's economy and industry, these international brands are making money from Chinese while boycotting Chinese cotton, and for a time, the crowd is excited.
It just so happened that at this time, everyone found that there was a domestic brand that was different, not only calling itself a "national tide".even wrote "using Xinjiang cotton" directly on the product tag, which can be said to be a slap in the face of Nike and Adi
This brand is none other than Li Ning.
Taking advantage of the popularity of the "Xinjiang Cotton Incident", throughout 2021, Li Ning can be called the toughest brand in the entire domestic sports circle, revenue for the yearskyrocketed to 2257.2 billion yuan, net profit also doubled to40.1.1 billion yuan, the market capitalization stood at the peakHK$280 billion
It's just that how high it is praised when it eats the "national tide" and "support for domestic production" dividends, how hard it will fall when it overturns in the future.
In 2022, Li Ning contracted Jingmen Zhanghe Airport and held a "2022 Dream Chase Airport Show", which was a good thing, but the clothes designed by Li Ning overturned on the show.
Source: Internet.
Army green, amphora hat lobe, although Li Ning claims that its design is inspired by the mortise and tenon dougong in ancient aircraft and the modern Yuxing flying spaceship, netizens do not eat this set, everyone only knows that this design is exactly the same as the design of the curtain hats of the little devils of the Japanese army that invaded China.
Later, it was revealed that Qian Wei, the executive director of Li Ning, turned out to be a Japanese Chinese who had worked at Uniqlo for more than 20 years.
After this kind of ** involving the family and country, some executives of Li Ning not only did not reflect, but pointed fingers at consumers in the circle of friends, saying that "our consumers still have less precipitation of Chinese culture and the inheritance of educational knowledge".
In the end, a good deck of national tide cards was beaten by Li Ning.
It's no wonder that someone commented at the time: "I take Li Ning as a domestic product, and Li Ning takes me as a big Zuo."
In fact, the "devil's suit" rollover incident is just a silhouette of Li Ning's deteriorating condition.
From the first brother of the national tide at the beginning, to today's fall from the altar, the core reason has always been the Li Ning brand itself.
At that time, Li Ning hit the high-end with the help of "China Li Ning" and made a lot of money for a while, but now a careful review will find that the thrust behind Li Ning's step by step climb to the top mainly comes from the "national tide", "marketing", and the wave of consumption upgrading in the past few years.
In other words, Li Ning, which has hit the high-end, has brand power, but the product power is insufficient, which is a typical "fat".
Taking the peak of 2021 as an example, Li Ning's revenue that year was 2257.2 billion yuan, and the cost of sales reached 1060.3 billion yuan, almost half of the total revenue. ButOn the other hand, R&D investment is only 41.4 billion yuan, accounting for less than 2% of total revenue
On the contrary, it is the advertising and marketing costs in the cost of salesExpenses amounted to 17800 million yuan, these billions were used by Li Ning to invite various celebrity endorsements, various advertising and marketing, and in the end, a shirt could be soldThe sky-high price of 990 yuanConsumers spend huge premiums, which are ultimately spent by Li Ning on marketing and sales, rather than on products.
Source: Internet.
In this mode, Li Ning's so-called high-end is more like a castle in the sky. After all, if there is no product power, how can you build a moat?
Compared with Nike and Adi, these international veteran sports giants have a variety of technologies in their hands, and their brand power and product power have always been the bestCompared with today's domestic brother Anta, the latter is also of excellent quality, and the high-end brand Arc'teryx technology is also professional enough.
Li Ning, on the other hand, seems to be suffering from marketing dependence.
In 2022, the growth rate of Li Ning's advertising and marketing expenses has exceeded the growth rate of revenueIn the first half of 2023, Li Ning reduced its marketing spending, but the same revenue also began to stall.
What's even more embarrassing is that Li Ning is facing the situation of defending high-end and digesting high inventory at the same time, so there is an embarrassment of raising prices and selling new ones while discounting, which is extremely contradictory.
In general, Li Ning's situation in recent years can be summed up in one sentence: becoming at the high-end and trapped in the high-end.
Today, with the rise of Anta Group's multi-brand matrix, if Li Ning wants to turn the tide against the wind, I am afraid that it can only hope to gradually expand its international business, which accounts for less than 2% of its total revenue, and have a drama of overseas feeding back to China.
As for what Li Ning is standing behind him, who cares?Ladies and gentlemen, what do you think of Li Ning's clothing?Everyone is welcome to discuss and exchange in the message area