The new brand strategy also shows that Lining is getting rid of the previous image as global brands' low-cost substitutes and trying to become a highe...
The new brand strategy also shows that Lining is getting rid of the previous image as global brands' low-cost substitutes and trying to become a higher-level brand. Meanwhile,
in recent years, the company has started to regulate pricing tactics. Compared with those global brands, like Nike and Adidas, Lining brand image's upgrade is conductive to lessen the price gap with them. Mr Wei, a industry analyst from CLSA Asia-Pacific Market which headquartered in Hong Kong, said that: "Lining has planed to add sports shoes' scale, with the average retail price over 400 RMB. He predicts that in three years, the retail price disparity between Lining sneakers and Nike and Adidas' will be narrowed from the current 30%-35% down to 15-20%.
Other Chinese sportswear brands take places in the market because of their price factors, but Lining is going forward towards a right direction. Lining once copied Nike in some aspects, but at present its own style is being shaped.
In addition, Lining Company's product line had been experienced upgrade and update, being added more original elements. Lining Company's stylists have demonstrated that they have the capacity to suffice Chinese consumers for their fashionable requirements.
Compared with other Chinese brands, Lining products have better designs and more diversified types. Lei Xiao Shan from CMR said that: "if I were Adidas, I would feel worried, because Adidas has been dumped behind by Lining in Chinese second and third tier cities and Lining's action is very swift in adjusting products line".
Lining also improved its image through a serious of sports sponsorship events. In 2009, Lining became Chinese national badminton team's sponsor, at the same time, also sponsored badminton world champion, Lin Dan, and purchased one of the biggest badminton equipments brand in China.
Furthermore, fierce competition and huge spending in China first tier cities are also a great challenge. For example, a more fashionable and more expensive Lining will undoubtedly need to add exposure rate in first tier cities because the young people are more active and attach more importance to fashionable style there. However these cities' central areas have been taken over by global sporting brands, thus, this will be a hard option for Lining Company.
However Wharton Business School's Professor Hawker doesn't mind these barriers and hazards being faced by Lining Enterprise. In this particular case, Lining Company doesn't have much burden, and it hasn't got a timeless brand image in people's mind yet, so it will gain more.
Just like the company's pioneer and chief executive once said. "On the playground, an athlete needs to take actions actively and contend for the first place industriously. Only have this vision, there will be a chance of becoming the final winner". He will agree to put this mindset into commercial battlefield.
