Lining Defense: Copying Daphne'S Transformation From Difficulty To Difficulty

Famous sports brand Lining Finally, we have come to a good news for the market. Recently, Li Ning Co announced that the company recently introduced TPG, an American private equity fund with extensive experience in the retail industry as its strategy. Investment People. After the news came out, Li Ning Co's stock jumped 21% in the two trading days.

From the response of the capital market, Lining's strategic investment can play the role of quick acting Kyushin Pills. The first dose was a vision for Lining. As the world's leading Private Equity Investment Firm, TPG has managed assets of $48 billion. In China, TPG has 17 years of investment experience, and has strong resources in the consumer and retail industries. One of the most deserving mentioning is that in 2009, TPG helped Taiwanese shoe maker Daphne succeed in its transformation. Therefore, it is widely hoped that the legend of Daphne's successful restructuring and transformation will repeat itself on Lining.

The introduction of private equity funds in the form of equity trading, Lining can also get about 750 million yuan investment, which is Lining's second infusion of life-saving medicine. For China's local sports brands, 2012 was a 4 year Olympic Games in which the sportswear and footwear giants began planning a series of marketing strategies last year. However, most of the news that Li Ning Co has put forward since the strategy of transformation and adjustment is not conducive to the negative information of the company's operation. At the time of the rival's crossbow, if Lining does not change again, the decline will be even more difficult to reverse.

It can be said that this time TPG To become Lining's strategic investor is a confidence boost in both external and practical sense. The reason why Lining announced the news to the outside world in the early spring of 2012 is that for the domestic sports brand, 2012 is a hurdle that needs to be crossed hard: in 2011, the domestic sports brand collectively appears "big stock" phenomenon, in 2012, the pressure of shipment and new revised order will appear on the major brands.

When the major brands are going to clear up their stocks at a discount price, the competition for local sports brands will become more intense, and the brands with less well-known popularity will be more difficult. In addition, in recent years, branding shops have pushed up retail store rents and operating costs, and even those with financing channels can ease the pressure of capital chain.

In China, the environment of sportswear shoes market has created a series of brands coming from behind, such as Anta, PEAK, 31st degree, XTEP and so on. TPG has brought confidence and money to Lining. If the move can change the fate of its decline, the answer will probably begin at the end of the year. Therefore, this year, Lining must have a more high-profile stance than his opponents during the Olympic Games. Of course, unlike 4 years ago, this should be called defensive posture.