Lining Introduced The Investment Fund To Force &Nbsp In The New Retail Market.

Introduce Investment foundation It is an important means to help them get out of difficulties. Lining We must rely on our own efforts to really get out of difficulties.

Lining, who is suffering from the decline of performance, has finally come to a good news. TPG, who has rich experience in the retail industry and talents, is a strategic investor in Lining. TPG will provide strategic and operational support for the development and growth of Li Ning Co. This good news has led Lining stock to rise 21% in the two trading days.

TPG is the world's leading Private Equity Investment Firm, founded in 1992, its assets under management amounted to $48 billion. He has 17 years of investment experience in China and has strong resources in the consumer and retail industries. TPG has successfully helped Taiwanese shoe maker Daphne get out of trouble. TPG helps Daphne improve its storage and distribution management and put forward suggestions on operations and supply chain. In the second years after TPG's stake, that is, in 2010, Daphne's core earnings rose by 2, and the number of days in storage turned down, and the share price rose more than 2 times.

Although Lining's consistent low profile has not set a goal for this marriage, Lining's CEO Zhang Zhiyong still said he hoped to see Lining's recovery in the 2012 year of adjustment. By the end of 2012, Lining will have 1500 sixth generation stores in the country and optimize the stock structure. Preparations for war 2012 are obvious. But can such a strong strategic investor really make Lining reborn in the face of internal and external troubles?

As a former domestic sport Clothes & Accessories First, the external situation faced by Lining is more complicated. In 2011, there was a big stock phenomenon in domestic brands. The major domestic sports brands were trapped in inventory and the industry was in a period of adjustment. Data released by Lining's colleague PEAK showed that the order volume in the second quarter of 2012 increased by 9.5% compared with the same quarter in 2011. This is the lowest increase in PEAK's orders since 2009, after which PEAK's orders increased by 20% over the same period. And Anta sports in the third quarter of 2011, the operating situation has also declined sharply. According to the expected data released by Anta, sales growth in the same quarter in the third quarter has declined, while the retail discount rate has also expanded. There is no doubt that 2012 will be a very sad year for domestic sports brands. Against this background, Lining wants to get rid of the bondage of the environment. Moreover, compared with the old rivals Anta and PEAK, Lining's inventory is deeper.

The two of external worries comes from the impact of international brands. When domestic brands are out of their time, international brands are beginning to exert their strength to the two or three tier cities in China. Despite the fact that domestic brands come from the two or three tier cities, their revenues are 70%~80%, but as the international brands continue to sink, the competition in the two or three tier cities will become fiercer and fiercer. As early as 2010, Nike China and Adidas China launched their 5 year plan in succession. They all indicated that the new stores in the two or three tier market will be increased in the next 5 years, and the products that are closer to the two or three tier market will be echoed. Now, after two years of market groping, international brands have been fully deployed in the two or three tier market.

In fact, Lining's management difficulties in recent two years are more from his own. Since the end of June 2010, Li Ning Co has made changes in its brand, and has been committed to improving its operational efficiency, optimizing its organization and adjusting its staff. However, whether the product positioning is unclear, or the relationship between distributors can not be properly dealt with, or the sales volume falls, these external manifestations are not satisfactory. The root causes lie in the confusion of internal management of Li Ning Co. Whether an enterprise can stand in the market or see its core management team, before Lining, chief executive officer, chief marketing officer and director of the Department of electronic commerce of the three major leaders will be replaced. The internal management will be trapped in decentralization and centralization of power, resulting in problems such as disputes about rights and unclear responsibilities, which seriously affect the operation of Li Ning Co.

The introduction of investment funds is an important way to help them out of their predicament, but Lining must rely on his own efforts to really get out of difficulties. TPG's distant water is hard to understand Lining's recent thirst.