From 3 Loss 3 Billion To First Half Net Profit Of 200 Million, What Did Lining Experience?

" Anything is possible "Lining. brand The slogan is also the best interpretation of it over the years for fear of failure and initiative. Lining fell into a trough in 2012~2014 and lost more than 3 billion yuan in 3 years. But in the first half of this year, it had a strong counterattack and its net profit reached 269 million yuan. What inspiration can Lining bring to us in this great spanformation?

Before 2018, many people had forgotten the slogan "anything is possible".

At the end of last century, who wore a pair of Lining sneakers on their feet would surely attract the collective worship of their little partners.

At that time, Lining was not only a Chinese sports brand, but also a Chinese sports star and a Chinese entrepreneur. Lining's "L" Logo has a magic power to make the distance between the brand and the consumer psychology very close.

Around 2000, with the increasing number of Logo on people's shoes, Lining encountered the first bottleneck period in the development of enterprises. During this period, the distance between Lining and consumers was forced by market competition.

In 2008, at the Beijing Olympic Games, Lining himself as the main torch bearer created a bonus period for the brand intentionally or unintentionally.

But in the following years, Lining was in a difficult position of high inventory. Even after Mr. Lining returned in 2015, the company failed to return to its peak.

It was unexpected that Lining was in York on 2018. fashion week Appearance, a series of pleasing consumer design has set off a "national tide" fashion. It has inspired people to recall memories as a brand memory in an ancient way. Obviously, Lining has understood. Winning the consumer is winning the market. 。

Lining unveiled New York fashion week 2018

What to save the changing market?

Lining, director of all channel Tan Yong, joined Lining at the beginning of this year. The typical post-80s evaluation Lining said in fashion week's performance:

"Touching deeply, let me have a renewed understanding of Lining. It not only represents a kind of national tide, a sports spirit, but also represents the Chinese movement and made in China."

As an original Chinese brand, Lining has developed rapidly with the demographic dividend. In the past twenty years, however, Lining's brand has been sinking several times in the market.

Why is Lining still the Lining, but the grace of the market is gone?

The truth is cruel: consumers are changing.

Tan Yong believes that consumer changes can be seen in two ways:

First, the group of consumers has changed.

At the beginning of Lining's founding, the group of Zhong powder was 70 and 80, and now they are mostly parenthood.

The sports industry has its own characteristics, and the participation of young consumers is even higher. By analyzing members' data, Lining found that the age span of consumers was between 20-45 years old.

Two, the hearts of consumers have changed.

In the big wholesale era, what the brand manufactures and what consumers buy. Sportswear brand is the same, the trend is initiated by brand, and consumers can only follow the crowd.

However, with the diversification of brands and the arrival of the era of personalized consumption, consumers are no longer satisfied, but seek active voice.

If we want to break through in the changes, we must stick to one thing. It is to shorten the distance from consumers and really start from the needs of consumers. This conclusion is only after Lining paid a high price.

At the same time, Lining and other industries in the industry also adopted the dealer system. This system has obvious advantages in that era - it can expand rapidly and occupy the market.

But as time goes on, problems are gradually exposed. Brands can not control the flow rights of distributors and articles, and ultimately lead to a lack of direct contact with consumers.

This contradiction eventually broke out after the clothing industry in 2012, and Lining was not able to be independent. In the past, the simple and crude production mode was rejected by consumers, and the inventory rate was higher and higher.

Publicly available data showed that Lining accumulated a deficit of over 3 billion yuan in three years from 2012 to 2014.

Accidentally "toss" its new retail.

In 2008, Lining set up an electric business company to open up online channels. Today, the electricity supplier's sales revenue has accounted for more than 20% of total revenue, you know, online, it is a super brand with more than 6000 stores.

But obviously, the electricity supplier is not the ultimate mode of brand. Lining must find a way to spanform the wholesale mode into a new retail mode with consumer demand before the traffic ceiling comes.

In the second half of 2015, Lining carried out the "three links" attempt around the whole channel.

First, the product SKU Tong: at present, the SKU of the 1500 self operated stores under the electricity supplier and offline has been basically the same.

The two is data communication: online ordering and offline delivery, giving consumers more options.

The three is the rule of trade: the quality of goods is consistent with the delivery line.

The purpose of the three links is to create new experiences for consumers with new products, new channels and new ways of operation.

"Lining decided to implement the first stage in the direct store. At present, more than 90% of the shops can sell to each other, and about 70% of the shops can be shipped on behalf of them," Tan Yong admits. "This data is almost at the top."

At the end of 2016, Ma put forward "new retail". At first hearing these three words, Lining used to disagree.

But with the deepening of understanding, Lining found that he had been struggling to get through the channels and commodities, and so on, and the new retail "people's yard reconstruction" highly coincide, the ultimate goal is to start from the user, data driven, technology as a means to enhance the efficiency of retail.

In the second half of 2017, Lining decided to set up a department to promote new retail business.

Before that, Lining had realized that the distribution of distributors' interests must be solved in the clothing retailing industry and had already tried to take two steps.

The first step is to establish a comprehensive channel settlement platform.

The distributors and the central and Taiwan will take the lead in docking. Dealers can obtain goods through the central Taiwan Strait on the premise of completing the regional futures growth target, but there may be a raise rate.

Conversely, if Taiwan wants to sell goods to dealers, dealers can also increase the price and then make a price increase settlement.

The second step, on the basis of the first step to run through, then consider the lateral penetration and technology empowerment among dealers.

For example, a customer sees a shoe in the store next to the dealer, but the display is 40 yards, and the customer wants 42 yards, so the scan code is purchased, and the shoe is sent directly to the customer's home online. The online and offline spanaction track is recognized because of its record.

Tan Yong believes that the running of the middle station will be able to give dealers to do offline spanactions, Taobao purchase and so on.

As for the target, he is more conservative. "We hope to operate in the first batch of one thousand or two thousand distributors first. By the end of this year, we will build up the system, interests, distribution, training and system, and will be promoted to more than 40% next year."

The key to breaking the situation lies in human beings.

Lining said in an interview with the media that what he cares about is not stock prices, but whether consumers have shoes on Lining's feet. Obviously, in his eyes, consumers are very important.

However, seeing and solving problems are two different things.

Where to find consumers, how to make the shopping guide to establish stickiness with consumers? That is to say, if we want to catch the consumer, we must first find the consumers, and then catch the consumers.

Increasing consumer contacts

Lining's consumer composition is more complex. First, there are different regions, from the first tier to the three or four tier cities, and the consumption ability is quite different. Two, the age span is large and the grade is different, so there are many SKU of Lining.

In the past, it was difficult for Lining to stratified consumers and layering the products, let alone satisfy the personalized needs of consumers.

After collaborating with Alibaba and Tencent on data, Lining found that the integration of private domain data and public domain data on different platforms can see a more granular portrait of consumers.

With the help of technology and content marketing, it is possible to increase consumer contacts. Some technical means can also present consumers' decision-making path.

Besides, sporting goods are different from ordinary consumer goods. Their sporting attributes come with strong scenes, such as running, basketball, badminton and so on.

"Our consumers are in different domains, scattered and intersected, and we hope to establish contact with them in any marketing scenario that consumers may have, for information exchange, product touches or brand culture export." Tan Yong said.

Enhance the enthusiasm of shopping guide

The sports brand has its particularity. Lining's Guide buyer should have both sales ability and professional knowledge.

Now, some shops are equipped with fitness trainers, who can help consumers experience through scenes, which shortens the link between products and people, and ultimately better catch consumers.

But in the past, shopping guides had no incentive to do these things, because consumers may not know which link they lost.

But after contacting the new retail, Tan Yong found that with the help of nails, WeChat and other tools, we can clearly see the link between shopping guide and consumers in touch, membership, communication and spanaction.

This visualization not only enables consumers to record, analyze, but also solve the problem of performance appraisal for purchasing agents.

In the future, consumers can get the corresponding rewards even if they have done the spanaction by scanning, buying, leaving and purchasing, and believe that their enthusiasm will be further stimulated.

At present, Lining has already used these tools in two hundred or three hundred stores. Tan Yong believes that if tens of thousands of shopping guides are used to empower thousands of stores, the turnover rate and repeat purchase rate will be greatly improved.

Last month, Lining released the first half of 2018 earnings.

Data show that revenue grew 17.9% to 4 billion 713 million yuan in the first half year, and net profit increased 42% to 269 million yuan compared with the same period, and net interest rate increased from 4.7% to 5.7%.

This achievement verifies Tan Yong's comment on the significance of Lining's establishment of the electricity supplier company: "the company has always insisted on thinking and innovating the market, sometimes it may not be effective immediately, but in the long run, there will be results."

Super change of new retail

　　 market In the process of changing, consumers are changing and technology is changing. Enterprises must take the initiative to explore new business models.

Tan Yong believes that the greatest thing about new retail is that it uses a broader vision to systematize and standardize the output of enterprises' grooming experience, so that more enterprises can quickly implement and see the direction.

At present, Lining and Alibaba and Tencent have carried out the spanformation of intelligent stores in a hierarchical way.

First select 1 (later will expand to 6-10) direct flagship store to carry out all hardware layout, such as data acquisition, AR experience and interactive equipment.

Then select dozens of stores (later will be gradually extended to hundreds of thousands of stores) for key layout, such as face recognition, thermal line, to achieve scanning code purchase, offline purchase;

The remaining stores only set up some simple applications at the moment, such as WIFI probes, allowing members to join the club and buy them more conveniently.

Tan Yong believes that there are three main reasons why there are no large areas of implementation.

First, objective reasons.

Lining's dealer mode originated from the beginning of brand establishment. New retail means to change, and sometimes even break the original interest distribution mechanism. Therefore, if there is no "rabbit", many dealers do not want to "spread eagle".

Two is the subjective reason.

New retail is not only the use of tools, the spanformation of digitalization, but also a top-down, internal and external organizational spanformation.

In making major decisions, Lining is more cautious. He wants to do pilot work in the region first and then move on step by step, because the right direction is sometimes more important than speed and scale.

The three reason is cost.

The spanformation of new retail stores involves intelligent hardware and interactive devices. Many technologies and equipment are expensive. If every shop is fully rolled out, the risks are great.

"But in the future, all stores should be able to achieve the simple functions of scanning and purchasing, leaving shop, because this is the trend. We hope that through the change of operation mode, we will push many things from quantitative change to qualitative change." Tan Yong said firmly.

The traditional mode of operation has failed. But changing tradition means change, and changes will encounter challenges. How to find a balance between rules and interests is hard.

In the next stage, my most important task is to let data speak.

Because of the characteristics of the industry, the garment industry has no experience in exploring the new retail process, and there are many obstacles, but we still have to do it.

First, we have the courage to try. Two, we believe that everything can happen as long as the change takes place.

The new retail sector must stand taller, see farther and move more firmly.