Lining Vigorously Discounts Distributors, But Has No Choice But To Close Stores.

In the determination to clean up inventory within one or two years, Lining began to increase the sales strength of online channels.

However, the discount activities of many products on Lining online mall have made a huge crisis for its store distributors.

A distributor complained, Lining.

The clothing discount is lower than the physical store, a large number of customers are taken away by the online stores, and some distributors have to close some of the offline stores.

More distributors said Taobao's sales price was lower than the distributor's purchase price.

In response to this, Li Ning Co replied to reporters that "the structure and type of goods sold online and offline are different. Online sales are mainly for non seasonal products and online exclusive version. If there are new products sold online, they will never be sold at lower prices."

However, Lining shop has opened a special promotion this autumn, and the discount is "50 percent off capped", and it can also be reduced by 80 yuan after the discount is 300 yuan.

Online and offline disputes

In order to increase domestic market development and digest excessive inventory, Li Ning Co has increased the construction of online channels.

However, after the online discount is launched, the operation of the entity store is becoming increasingly cold.

How to coordinate the contradiction between online shop and offline shop becomes a big problem Lining needs to think about in the sales channel.

From the online channel of Lining's official mall, we can see that Lining not only launched anti season merchandise 2.8, but also launched a special promotion for new products in autumn 2012. In the shop, it not only gave the "50 percent off ceiling" discount, but also launched a discount of 300 yuan and a further reduction of 80 yuan.

"Spending 980 yuan, shopping again 45% off of the total, including many of the best selling products of 2012Q3, such as Ning arc.

45% off, which is consistent with my quarterly purchase discount, or even lower than most of the sales discounts of the distributors, so what do we do to the distributors? "The distributor said," when I asked as consumers and customer service communication, "why is it lower than the price of the entity shop", the other side told me that they were factory direct suppliers, and the entity shops were bought through them, which made us feel cold.

Some distributors have disclosed to the media that the discount of some distributors from the dealers is not equal to 5-5.9, and that most regional distributors take the goods at about 40 percent off of the tag price.

What does Li Ning Co think about the above statement? Li Ning Co replied to reporters: "online and offline, online is mainly for sale of non seasonal goods and network exclusive version."

The company believes that "opening online shopping mall, not only by establishing online sales platform, directly communicating with the final consumers, but also collecting a large number of detailed and effective data, which is of guiding significance for Lining brand to provide consumers with better consumption experience and products".

Physical stores eliminate disadvantage Lining

Since 1997, China's e-commerce has gone through 10 years.

From B2B, B2C, C2C to today's OTO, the business mode and operation mode of e-commerce are diversifying.

Nowadays, more and more brands are starting to operate online shopping centers. However, how to balance online and offline business has become a major problem for these brands.

A distributor told reporters that he had run 7 Lining stores, but due to the impact of the online shopping mall of Lining, it has been reduced to 2.

The distributor calculated an account: for example, a Lining store can achieve a profit loss balance of 10 yuan a month, and can sell 130 thousand when there is no online shopping impact.

"Under the influence of online shopping, store efficiency gradually decreases, and all kinds of expenses increase with the development of society. When sales can not be guaranteed, the boss starts to close shop and engage in other industries, but Lining has lost a shop that can ship millions of products a year."

He thinks, without this channel (entity store), Lining electric business will not necessarily increase the share of the electricity supplier, it will be replaced by other or Jinjiang department or Amoy brand.

For these problems, Li Ning Co told reporters that offline sales are still the main force and foothold of Lining's brand sales, whether it is the scale of sales from the current line or the company's input in this field.

The importance and core status of Li Ning Co must not be shaken.

Although Lining online mall is developing rapidly, the proportion of online sales is still not very high in the overall sales scale of Li Ning Co. This part of the business is still in the development stage.

Can online and offline win together?

Based on the current market environment and the trend of online shopping, opening online shopping centers as a supplement to traditional sales mode has been common.

Li Ning Co believes that for the Lining brand, the establishment of online sales platform is also in line with the trend to adapt to market development and

Move.

"Taking into account the growth of online and offline consumption patterns, Lining has established and developed online sales platforms to meet the needs of consumers in different shopping habits. In the long run, the two sales modes are in fact benign and complementary."

Li Ning Co said so.

However, how can we achieve a win-win situation? The OTO mode put forward by Lining distributors is to bring online consumers to the real stores, pay for the goods and services under the purchase line online or offline, and then enjoy services on the line.

More distributors put forward the following suggestions: first, online new pricing is 15% to 30% lower than offline; two is to integrate network sales channels, only to retain Lining's official store; three, establish a nationwide online sales line service platform, all distributors and competent quality distributors who are willing to participate in the establishment of their own offline service departments; four, all participating in this mode store to establish consumer experience area, experience Lining's latest technology and sports technology platform, in order to enhance brand professionalism.