Li Ning saved "Li Ning"

“The big transition is now over.” On February 28, Li Ning, founder, chairman and chief executive officer of Li Ning, said.

On the same day, Li Ning’s first brand experience store focused on consumer interactive experience settled in Shanghai Daning International Business Plaza. Li Ning personally arrived at the opening ceremony.

Since 2012, the entire sporting goods industry has been caught in a “stocking plight” and Li Ning has suffered huge losses for two consecutive years.

"A company that wants to change is very difficult. It is not easy to change itself and go into transition." Li Ning said, "In the past few years, Li Ning has been looking for a business model for future development. The so-called decline in performance is the result of active adjustment."

Li Ning said that setting up a brand experience shop is one of the strategic measures that was determined last year after the “create Li Ning sports experience” as a new business model.

Li Ning Shanghai Daning “Experience” store’s highlights are: a running product area with professional running posture testing equipment, etc. On the second floor, Li Ning’s iRun Running Club is added, and the latter can provide professional physical training courses. A one-stop shopping, fitness, and social networking experience is possible.

Li Ning said that in the future everyone will say that "participation in sports" is no longer a simple feeling in the past, but it will really participate in an actual sport. In the future, Li Ning hopes to integrate technological experience and intelligent experience in product development, and stores can provide sports and training experiences. At the same time, we hope to make the O2O model and better integrate online and offline businesses.

Last year, Li Ning cooperated with Hua Mi Technology to launch the Li Ning smart running shoes and promoted 10 kilometers of running in the city. He hoped to communicate with the runners in the sports.

However, Li Ning also frankly stated that “a restructuring of the business model is very difficult”. Only O2O involves many aspects such as settlement, cost, and information exchange. It cannot be done overnight. It is harder to enlarge the business model of the entire company.

During the visit to the Li Ning brand experience store, a former Li Ning distributor told the Yu Xinshi reporter that although there are still differences between the local brands and foreign big names in terms of design appearance, in terms of quality, the local and foreign brands have actually been different. Little, the lack of local brands is more of a brand's power. Li Ning, a more fashionable brand experience store, is indeed helpful to enhance the brand image, but the brand construction still needs time.

Li Ning announced on January 6 this year that its pre-hi earnings announcement will be achieved in 2015. The power to turn losses comes from: improving the operating efficiency and profitability of directly-operated stores, strengthening long-term cooperation with channel partners, and expanding e-commerce business.

Last year, Li Ning regained control of Li Ning's operations and concurrently served as the company's acting CEO.

Li Ning stated on February 28 that it is still continuing to search for suitable candidates, but this is not an emergency. He believes that he has his own understanding of sports and business, and also has his own way of communicating with people. “Li Ning (company) is a comparatively handy one.”