Welcome the Olympic Li Ning Company to develop a multi-brand development strategy

Li Ning Co., Ltd. announced its results for the last year in March 2007. As of December 31, 2006, the Group's turnover was approximately RMB 3.18 billion, a rise of 29.8%. Among them, Li Ning brand products sales rose 35.7%, accounting for 99.6% of total turnover. Li Ning, chairman of the company, said that as the 2008 Beijing Olympics approached, China’s sportswear industry maintained a strong growth momentum and created a very good macro industrial environment for Li Ning. At the same time, industry competition was also intensifying.

Steady growth in sales

It is reported that after 16 years of development, Li Ning products have been covered in sportswear, sports shoes, sports accessories and other series, with Li Ning brand, Ego brand, SHAQ and other brands. Li Ning brand clothing products have achieved sales growth of 30.7% despite fierce competition from domestic and foreign brands; sales of footwear products increased by 48.3% compared to 2005; and accessories products also achieved 15.3% as the Group optimized its product portfolio during the year. growth of.

Li Ning said that in 2006, the company continued to achieve outstanding performance with the help of supply chain management and channel integration. In the past two years, Li Ning's supply chain has changed significantly. The inventory cycle is one of the key indicators for evaluating the efficiency of the supply chain. In recent years, the company's inventory cycle has been decreasing, from the initial 130 days to more than 120 days, and has now been shortened to 116 days. In 2005, the figure fell again to 86 days, which was more than 20% shorter than the previous year. In order to further integrate the supply chain, Li Ning further strengthened its core supplier team. Among the 100 suppliers, the top ten manufacturing companies in the global apparel industry are on the list. Li Ning also divided more than 100 suppliers into three levels and established a clear introduction and withdrawal mechanism. In addition to tightly "uniting" the suppliers around the company, the company also strengthened information management, which is to connect the supplier's manufacturing process with the dealer's procurement process.

In the distribution network, as of last year, in 19 major cities such as Beijing, Shanghai and Hangzhou, the total number of Li Ning stores has reached 4,297, a net increase of 924 from the previous year. Li Ning stated that the Group will expand its business network for the second and third-tier markets, increase its retail efficiency, and strive to consolidate its core business and accelerate its growth.

Multi-brand success

The brand marketing ability is one of the core competitiveness of Li Ning Company. The Li Ning brand focuses on integrated marketing, emphasizing the comprehensive application of multiple marketing methods with sports marketing as the core. Using Western expressions to present the features of Eastern culture. The characteristics of the Oriental culture as the strategic positioning of Li Ning brand, so that it becomes a deep cultural division with the competitive brand.

“Li Ning is also developing a multi-brand development strategy while striving to develop the core brand Li Ning.” Li Ning also said that Li Ning will seek a win-win partnership and develop Li Ning into a multi-brand operator by introducing international brands to China. .

It is reported that Li Ning and NBA star O'Neill teamed up to launch a joint brand, "Li Ning-SHAQ." The first product of the co-branded professional basketball product line was launched in January 2007. In addition, Li Ning also cooperated with the Men's Professional Tennis Players Association (ATP) to launch a joint branded product that was also launched in 2006.

According to the market value ranking of SGI, the authoritative research magazine of the US sporting goods industry, for 93 listed sportswear companies in the world in January of this year, the market value of Li Ning at the end of 2006 reached 1.629 billion U.S. dollars, which was higher than that at the end of 2005. With an increase of 128.5%, the growth rate ranks second among 93 listed companies in the sporting goods industry. If you only consider a comprehensive sports goods company, Li Ning's market capitalization ranks behind Nike, Adidas, Hummer, and Aix, ranking fifth in the world.