Jordan's Reputation In Sports Is Facing "Turning" Or "Carrying".

Cheng also Jordan, defeated Jordan.

The SFC announced in January that 51 listed companies have started issuing since this round of IPO restart. Recently, the latest IPO business declaration form released by the SFC shows that 28 enterprises, including Jordan sports Limited by Share Ltd (hereinafter referred to as "Jordan sports"), which have been examined by the trial committee, need to make annual reports. If approved, they will be issued approval in March.

This is the main sports shoe. Sportswear And sports accessories design, production and sales, it is estimated that the number of shares issued, 113 million yuan, 1 billion 64 million yuan to prepare for the expansion of shoe production base, direct store construction and other projects in order to obtain the two take-off of Fujian enterprises, at the crucial moment before the listing, basketball giant Michael Jordan severely "cover" a big hat.

Over the past decade or so, Jordan Sports In the way of "edge ball", it borrowed "fame", invested billions of dollars in low-key management, and achieved about 3000000000 Yuan sales in 2011, and established more than 5700 outlets. But now, the sporting goods business has met with the final exam. One of Michael Jordan's pleading not only makes the listing of the company full of variables, but also makes Jordan's sports brand accumulated for decades. Beginning in the second half of 2011, the cold spell that swept China's sporting goods industry also made Jordan's sports difficult to get rid of the sharp increase in inventory and declining performance.

Borrowed reputation

Jordan sports prospectus shows that its founder Ding Guoxiong opened shop in Beijing in early 1980s to distribute sports shoes. Since 1985, Ding Guoxiong has started operating wholesale sports shoes and has accumulated primitive capital.

In 1984, Ding Guoxiong and his father, Ding old, invested 136 thousand yuan to set up the predecessor of Jordan sports, "two factories for daily necessities in Jinjiang, Fujian, Chen Dai". This year, the 21 year old American basketball player Michael Jordan was chosen by the bulls in third place in the draft, and a dynasty of NBA came to announce.

By the end of 1995, Ding Guo hung More than 10 retail outlets and two wholesale stores have been opened in Beijing. Michael Jordan, who retired for more than a year, announced his comeback in that year. Ding and his son completed the accumulation of capital and experience, and Michael Jordan began his second brilliance.

In June 2000, Ding and his son changed the company's restructuring to Jinjiang Jordan sporting goods Co., Ltd. in 2009, its company changed to joint-stock system and was renamed the Jordan sports Limited by Share Ltd. Some analysts pointed out that Ding was named after the two word "Jordan". The intention was to promote the influence of these two words in Chinese fans. After the accumulation of brand, channel network and product design, Jordan sports began to change qualitatively.

Jordan sports prospectus shows that as of June 30, 2011, the company has established a marketing network covering 31 provinces, municipalities and autonomous regions, and 5715 brand stores. Its sales in the first half of 2011 amounted to 1 billion 700 million yuan.

Some analysts pointed out that despite claiming that they had nothing to do with Michael Jordan, there were actually quite a few consumers because of the word "Jordan", because of the trademark design of the basketball players, the association of flying Jordan was produced, and Jordan sports products were chosen as the two. Jordan sports, which is famous for its reputation, has adopted trademark protection registration, market segmentation and dissemination, so as to ensure that brand ownership is justifiable.

It is reported that Jordan sports registered 131 trademarks in China, including Chinese characters, letters and graphics, most of which are related to "Jordan". "Jordan" Chinese characters, Pinyin, athletes dribbling graphics and other elements are listed in it, in addition to "small Jordan", "Jordan king", "Qiao Dan", "Dan Qiao" and other similar protective trademarks.

Jordan's sports brand has also been officially recognized in many aspects, such as the state inspection and Quarantine Administration's "state inspection free products", "China's famous brand products" and the State Administration for Industry and commerce's "well-known trademarks in China".

Because of the brand's "congenital popularity advantage", Jordan sports advertising investment is very few, in the media watching basketball game broadcast. Body appears. It was not until 2008 that Jordan sports sponsored CCTV for three consecutive years.

Insiders pointed out that the initial cost of large star endorsement and advertising costs, Jordan sports has the bottom line in the channel enclosure, product design and organizational management efforts, a lot of money. However, Jordan sports has carried out the banner of the national brand on some occasions. It seems that it has left a way for itself.

Listing is in the lead but in the winter of industry.

From the second half of 2011, the cold spell that swept China's sporting goods industry made many people tremble with fear. High inventory nightmare has spread in the industry, and the expansion of the channel has slowed down in recent years. Closing shop tide 。 For Jordan sports and his colleagues, it is a great challenge to smoothly pass the winter of sporting goods industry.

Industry leader Lining (02331.HK) reported in 2012 that the annual revenue was 6 billion 739 million yuan, a year-on-year decrease of 24.5%, a gross profit drop of 36.9% and a profit loss of 1 billion 979 million yuan. Inventory turnover also increased from 72 days in the previous year to 90 days, and inventory reached 920 million yuan. In addition, Lining also closed 1821 shops, accounting for about 22.06% of the total. Even in the first half of 2013, Lining's industry income still decreased by 24.6% over the same period, and no improvement was seen. Net profit was 184 million yuan from a profit of 44 million yuan in the same period in 2012. {page_break}

For domestic sporting goods enterprises, high inventory has become an insurmountable challenge. Statistics show that in the 6 Chinese sports Brand Company listed in Hongkong as an example, in 2011, the total inventory of the six sports brands was 3 billion 699 million yuan; in 2012, it was 3 billion 324 million yuan; in the first half of 2013, the stock pressure of each brand did not decrease, and the total inventory reached 3 billion 29 million yuan.

Although Jordan sports in 2012 and 2013's earnings report has not been announced, but in the whole industry downturn, growth stagnation environment, its days may not be better.

From the financial data released by Jordan sports prospectus, its inventory situation is not optimistic.

As of the first half of 2011, Jordan Sports Stock It reached 199 million yuan, and its share of total assets increased from 9.4% at the end of 2010 to 9.4%. Analysts pointed out that inventory is rising trend, will undoubtedly increase the pressure of Jordan sports losses, for its performance will be a huge land mine.

In addition, Jordan sports rely on distributors to fight the world, mainly using the sales mode of distributors. According to its prospectus, there are only 7 stores in the 5715 stores of Jordan sports, and 147 stores in the mall. The main revenue during the reporting period comes from products sold to authorized distributors, which are mainly sold by distributors through their own or authorized stores to terminal consumers.

Insiders said that dealers are holding money in hand, directly from the production enterprise purchase, and then sell sales to get interest rates. The biggest advantage of this business mode to enterprises is that they are not selling credit to distributors, but actually receive money, which effectively guarantees cash flow.

However, it is noteworthy that the amount of accounts receivable in Jordan's sports reporting period increased significantly. From 2008 to the first half of 2011, Jordan's sports accounts receivable were 54 million 202 thousand and 100 yuan, 136 million yuan, 409 million yuan and 600 million yuan respectively, accounting for 9.29%, 14.56%, 19.62% and 28.36% of total assets. The ratio of accounts receivable to income also soared to 35.09% from 10.45% in 2008. In the same period, its current liabilities increased almost twice.

Jordan sports said that accounts receivable is mainly for the receivables of distributors. In order to help dealers have more capital to invest in the market, speed up product sales and reduce inventories, the company's appropriate repayment of distributors' receivables will lead to increased receivables.

Insiders pointed out that, with the help of distributors' financial resources, the capital flow can be improved through deposit and payment settlement. However, due to the use of credit supply to dealers, this will cause the hidden danger of accounts receivable. In the case of heavier inventory problems, the dealer's capital flow will inevitably be affected, and then affect the capital flow of Jordan sports.

It is the best way for Jordan sports to break through the bottleneck of development to change the sales mode relying on distributors and increase the proportion of direct outlets in the channel network.

People in the industry say frankly that there is no cornerstone of the successful operation of a strong direct store, and that the scale of sales volume by joining the chain stores is a poor quality system with "milk is the mother, and the tree is scattered."

Another analyst pointed out that through direct sales can get more profits, and because of the embarrassment of the brand, Jordan sports brand premium is naturally limited space, improve the profit margin of single shop is the best way to increase revenue. More importantly, Direct stores are easier to control and manage than distributors, and are more conducive to the unification of brand communication.

The structural adjustment of the channel network and the optimization of capital flow have made Jordan sports's listing matter on the drawing board. Jordan sports plans to raise 1 billion 60 million yuan in the Shanghai Stock Exchange to invest in 4 projects, including shoe production base expansion and direct store construction. The strategy of direct store construction is to build 27 brand strategic shops in the first tier cities in China, and take them as the center to spread the marketing network in the form of distributors' retail outlets, and form a business mode of the center to drive the sales network, so as to promote the overall sales performance of the local and surrounding areas, and effectively manage and monitor the local retail stores.

Tort litigation minefield sad

Jordan sports, which was successfully launched in November 25, 2011 and originally planned to be listed before the end of March 2012, is preparing to achieve the two take-off through the launch of the exhibition. Michael Jordan's petition for a listing is full of variables and risks for its subsequent development.

In February 23, 2012, Michael Jordan said in a statement that he had filed a lawsuit against a Chinese court, accusing Jordan of using his name without misgiving and deliberately misleading Chinese consumers. For a while, public opinion was in an uproar. {page_break}

"I am very disappointed that my Chinese name, shirt number 23 is not allowed to use my name, even trying to use my child's name to carry out business activities. I take this action to protect my name and brand. " Michael Jordan said.

In the trademark registered by Jordan sports, Jeffrey Jordan, Markus Jordan, JIEFULIQIAODAN, MAKUSIQIAODAN and so on are impressively listed. These trademarks are the same as those of Michael Jordan's two sons, both in English and in Chinese.

In this regard, Jordan sports statement said that it has exclusive rights to "Jordan" and other registered trademarks, and is protected by law. The prospectus, also known as its own trademark, is the word "Jordan" or "Qiaodan" Pinyin, which is different from the "MICHAELJORDAN" trademark registered in Nike. "It is independent of each other, it can not cause confusion among consumers, and there is no infringement problem".

And in Jordan sports. Prospectus "Trademark and firm risk" is listed as the first item in "risk factor prompts".

There is an analysis of why Michael Jordan wants to bring Jordan sports to court. There is a strong pushing force behind the storm, that is, Nike, the ultimate winner. Nike takes advantage of the focus of events to build up the brand image of Nike through Jordan, further improve and quantify the design of products, let Chinese consumers queue up to pay for it, and more importantly, let more Chinese consumers really see the relationship between Jordan sports and flying Jordan, and further remove the hidden danger that Nike has always had. Because Jordan's image in China's market development is indirectly impeded by Jordan's sports. And this hidden danger many years ago, Nike sued Jordan sports has been hidden, but has not been solved practically.

In February 22, 2002, Nike objected to the Trademark Office of Jordan's sportsman's left hand dribbling mark with the Chinese pinyin "QIAODAN" and the Chinese "Jordan". The following year, Nike also put forward 6 trademark objections. In 2007, Nike also objected to the trademark of Jordan's physical education athlete's right hand dribbling. The 8 objections were rejected. And on the occasion of Jordan's sports IPO, Nike, taking advantage of the power of the media and propaganda by Jordan, intends to give Jordan sports a fatal blow.

The Jordan lawsuit is still in a stalemate. In March 29th last year, Jordan sports, which was swirling in public opinion, filed a lawsuit against the intermediate people's Court of Quanzhou, Fujian province. He asked Jordan to stop violating Jordan's right to reputation in sports, clarify the facts, apologize, restore Jordan's sports reputation and compensate for the economic loss of $8 million. In April 2nd, the court of Quanzhou formally accepted the case.

Jordan sports agent and Guo Hao Law Firm lawyer Qiu Xiang said that there is no unique correspondence between Chinese "Jordan" and Michael Jordan (Michael Jordan). Just in the household registration of Chinese public security organs, there are more than 4600 Chinese citizens called Jordan, and Jordan is not exclusively Michael Jordan.

Jordan sports said, Jordan in Jordan sports listed at the critical moment for high-profile prosecution, the use of litigation damage Jordan sports reputation right, resulting in Jordan sports IPO listing blocked, affecting the company's business development plan. The company's lawsuit is helpless, hoping to safeguard its legitimate rights and interests by legal means, and restore the legitimate right of reputation of Jordan sports.

For the latest progress of the above lawsuit, our reporter contacted Jordan sports secretaries office, but as of press release, no reply has yet been received.

There are reports that the analysis of the relevant experts said that Jordan will face a "losing" situation in the future regardless of the outcome of the lawsuit. On the one hand, Jordan sports listing process or blocked, this will break its established development strategy, and may even trigger a crisis of capital chain; on the other hand, the use of "Jordan" brand makes it face huge risks in overseas market expansion and capital operation, and the development space is blocked.

In addition, Jordan sports without any authorization, Jordan and Jordan in the NBA team number 23, even Jordan two children's names are registered as their own trademarks, the production of sporting goods, but argues that there is no corresponding relationship with Michael Jordan, no matter how the law determines, in the eyes of consumers, "Jordan" brand can not represent China's pace towards the world. On the contrary, its intention to ride the brand and ride the ball is obvious. Because of suspected misleading consumers, Jordan sports's brand image and reputation accumulated over the years will be damaged, which will be a heavy blow. {page_break}

The most direct impact of "tort litigation" is that Jordan sports may postpone the issue. The effect of postponed release on Jordan's sports is self-evident.

Independent commentator Ma Gang believes that brands such as Jordan sports, which are entrenched in the three or four tier market, are getting more and more impacted by the first and second tier brands from Nike, ADI, Lining and so on. They are in urgent need of cash input to expand their channels. Once the listing process is blocked, the original planned marketing investment, channel expansion costs and product development costs may all be problems.

It is understood that the "IPO listing management method" is a requirement for issuers to go public. There is no significant debt repayment risk. There are no major or contingencies affecting continuing operations such as guarantees, litigation and arbitration.

The method also requires that after the issuance of the application for approval and the issuance of the stock issue, the issuer shall delay or suspend the issuance of the major issues, and report the SFC in a timely manner, while fulfilling the duty of disclosure. If the issuing conditions are affected, the approval procedure shall be renewed.

The current issuance audit process is closely linked, and every link from the material submitted to the final issue and listing will be bright red.

Analysts pointed out that in the pre-trial stage, the SFC's issuing department will not make substantive judgments on whether the issuer can be listed. The core of its work is that the issuer truthfully disclose any factors that may have an impact on the company's continued profitability and asset integrity, including litigation arising from trademark rights. Even if we get the approval, there are precedents that enterprises may lose because of emergencies in the last stage, such as Shengjing mountain and river.

The above pointed out that even if Jordan sports can get the approval issued in the final stage, whether it can get investors' approval in the issue stage is also unknown.

However, some analysts have pointed out that after the fact that Jordan sports had nothing to do with world-class basketball superstars "flying Jordan", the basketball culture and connotation of Jordan brand of Jordan sports showed unprecedented hollowing and Shanzhai. This will become a huge short board for Jordan's sports brand building, and it needs to be repaired by force.

But Jordan sports listing process will not be affected.

According to the analyst, Jordan sports has successfully passed the meeting. The seriousness and authority of the CSRC's approval has been decided. The regulator will not easily change its original decision. However, Jordan sports IPO issue pricing may be affected to a certain extent.

Jordan's dilemma in sports

Huasheng Zhi ye, Li Guangdou brand Li Guangdou, the founder of marketing organization, once wrote that because many consumers linked their names and patterns with Michael Jordan, it greatly saved the publicity expenses for Jordan sports. But Jordan sports has also been worried that such a directional brand name will cause it a lot of trouble. In recent years, because of the tight funding chain, Jordan sports had to choose to stand on the cusp.

Now, the "Jordan" brand is going to stay or not? Jordan sports is facing a dilemma. Regardless of the outcome of this lawsuit, Jordan sports will face a huge crisis.

Now the two way before Jordan's sports: one is "turning", the other is carrying. The so-called "turn" is renaming the hero, breaking the arm, giving up "Jordan" and creating another brand. This requires huge capital and time cost, but it may not be a feasible road.

Li Guangdou took the example of 360 degrees in 2003. Buick sports shoes It has occupied the top three position of the domestic sports shoes market, and has won the title of "national inspection free product". Unexpectedly, because of the "Buick" car brand crash with the United States, under the pressure of Buick automobile and industry and Commerce Bureau, it had to change the brand name to 360 degrees. 360 degrees once claimed that only 50 million yuan had been invested in repackaging new brands, and that the 50 million yuan had only changed the signboards. It is difficult to calculate the input of consumers. After years of painstaking efforts, the 31st degree has also gradually restored its position in the consumer's mind and successfully listed in Hongkong. Although the road was bumpy, it also made the "Buick" get rid of the suspicion of giving birth to children.

The present "Jordan" is also faced with the same situation as "Buick" at the beginning. Moreover, consumers' personal worship of flying Jordan is far superior to that of Buick fans, which will make the road of losing Jordan's sports more difficult in the future. "Jordan"

"Carrying" is a question of flying people's disregard, business to follow suit, lawsuit to fight, and adhere to IPO, but from then on whether Jordan sports can get rid of the shadow of Shanzhai, and whether consumers can accept it may be a more severe test. Jordan sports can consider cultivating a new brand, carrying out double brand operation, putting eggs in different baskets and dispersing risks.