Lining Integrated Wholesale Distributor &Nbsp; Does The Market Recognize Such A Pformation?

As the leader of Chinese sports brand,

Lining said in a notice, "although these reform measures will bring short-term pain, the next two quarters, Lining brand"

Zhao Yu, a strategic advisor of sports consulting company limited, said: "the pain is inevitable in the pformation process, but the key is whether the market has recognized such a pformation."

500~600 low efficiency distributors will be integrated.

The reform measures of Lining's distribution system show that the integration channel is to integrate 500 to 600 single business shops, to increase the discount sales to 10%, and to increase the wholesale discount by 3 percentage points.

Earlier, media pointed out that Lining wants to close 500~600 poor performance stores.

In December 27th, the head of Li Ning Co said, "this is not to close stores, but to integrate distributors.

The integration of inefficient distributors is to allow more efficient and larger distributors and distributors who want further development to purchase low efficiency distributors' stores.

At the same time, the group will encourage large dealers to increase the number of direct outlets.

In June 30th this year, Lining had 129 distributors and more than 2000 distributors.

More than 1700 distributors operate only 1 stores.

Most distributors' retail management capabilities, procurement capabilities and product lifecycle management are relatively weak, resulting in their shop performance and operating profit margins are not ideal.

In addition, dealers and distributors are facing the pressure of rapid cost increase, especially labor costs and rent increases.