Li Ning signed wide cats into children's clothing adjustment strategy specializing in third- and fourth-tier cities

As we all know, Li Ning is not a fresh face in the children's wear market. As early as 2010, Li Ning launched a three-year cooperation with local children's clothing manufacturer Parklandi, which also uses the brand licensing model. Parkland is solely responsible for the operation of Li Ning's children's clothing.

As we all know, Li Ning, a sportswear company, is not a fresh face of the children's wear market. As early as 2010, Li Ning launched a three-year cooperation with local children's wear manufacturer Parklant. The same brand licensing model was used by Parkland to take full responsibility for the operation and management of Li Ning children's wear.

Recently, the Li Ning Children's Brand Authorized Press Conference was held in Beijing's Li Ning Park. At the press conference, Li Ning Group announced that within the next ten years, the Li Ning brand will be exclusively authorized to Tianjin Kuang Mao Mao Children's Products Co., Ltd., since January 1, 2013, the cat will be responsible for the Li Ning children's clothing business independently.

However, when the three-year cooperation expired, Li Ning changed his partner. Nan Peng, director of Li Ning's new business development project department, explained that “the cooperation with Parkland did not meet the performance expectations because of the difference in management awareness between the two companies.” He said that “Pikelandi is an independent company. Our management intentions cannot be implemented.” This time, the delegation is different. “Li Ning is a broad cat's shareholder. Therefore, Li Ning can strengthen supervision of the cats and achieve Li Ning’s management intentions.”

However, according to an authoritative source, although Li Ning has invested in Broad Cat Children's Products Co., Ltd., it is not its largest shareholder. This point has been confirmed by Guo Yingkou, a manager of Broad Cat Children's Products Co., Ltd. When asked whether the cat cat was oriented by Li Ning Group's management intentions, Guo Hao said that the cats had the operational autonomy and "the Li Ning Group is only one of the company's shareholders."

Then, whether the Li Ning Group's management authority over its children's wear brand is as true as what Nan Peng said “it is possible to implement Li Ning’s management intentions”, it seems that it should make a question mark.

In terms of price positioning, Nan Peng said that "Li Ning's price positioning is in line with Li Ning's brand image." According to reason, Li Ning's children's clothing should also be the same price as mid-range.

However, the authoritative sources pointed out that the head of the cat has said that Li Ning children's clothing prices are high, and mainly in the third and fourth tier cities. This is in contrast with Li Ning's argument, which further proves that the decision of the wide cat is not entirely from Li Ning's intentions.

According to Nan Peng, consumers of Li Ning children's wear are Li Ning brand advocates who are in their marriage age and childbearing age. Because of their trust in the Li Ning brand, they will choose Li Ning first when they purchase children's clothes for their children. In addition, Li Ning children's professional sports protection appeal is also an important factor to attract parents to purchase.

However, the market may not be as Li Ning expected. You know, the purchase decision makers for children's wear are not only parents. According to research and analysis, with the increase of age, children's self-selection ability for clothing is getting bigger and bigger, and even become the main decision-maker of purchase. So, after the brand of Li Ning in the post-70s, how can the brand recognition of parents in the 80s add more points to the sales of children's clothing?

In addition, statistics show that the current pattern of China's children's wear market is roughly 50% for domestic and foreign brands, while only 30% of the 50% market share owned by domestic manufacturers owns brands. They are gathered in first-, second-, and third-tier cities. 70% are in brand-free status and are distributed in vast third and fourth-tier cities. And 50% of the market occupied by foreign brands is concentrated in first-tier cities.

Avoiding positive competition with foreign brands and seizing high-end markets in the broader third and fourth-tier cities may be the reason why Li Ning’s children’s clothing is the main force to attack third and fourth-tier cities. However, at present, China's third- and fourth-tier cities are still dominated by low- and middle-income consumer groups, which has created obstacles for the entry of high-priced foreign brands of children's clothing. This obstacle is also inevitable for Li Ning children's clothing with high prices. Moreover, with the mid-range image and high-end prices, is it easy to accept?