Recently, Li Ning, a well-known sports brand in China, released its first-half results in 2012. According to financial reports, the company’s first-half revenue was RMB3.880 billion, a decrease of 9.5% year-on-year. Anta, Peak, and Xtep, which are also competitors, also announced their first-half results a few days ago. Except that Xtep's performance grew slightly, the others declined.
This shows that there is no doubt that the sporting goods industry faces enormous challenges.
Faced with the status quo in the industry, the Li-Ning Group has already taken the lead in transforming reforms, and has frequently adopted strategies such as coaching changes and reducing inventory pressure. In addition, Li Ning also used this London Olympics business opportunity to vigorously promote branding.
This time, Li Ning, chairman of Li Ning Group, said at the performance briefing: “To effectively respond to the industry environment and promote the long-term sustainable development of the Group, the Group decided to focus its resources on the core Li Ning brand and the domestic market, focusing on the nature of the movement. In order to give full play to the brand value, despite the pressure, the Group still persisted in promoting change in the first half of the year."
Following its focus on core business strategies, the Li Ning Group in the first half of the year insisted on accelerating the inventory clean-up of retail terminals, optimizing the terminal inventory structure, shutting down inefficient stores and increasing retail efficiency. At the same time, the Group formulated and implemented the Olympic integrated marketing plan, combined with the major sports events during the period, the functionality of new products, and unique brand personality, continued to interact with consumers to communicate, convey brand positioning, and strengthen brand equity.
Industry insiders believe that Li Ning's lead change will lead the industry to take the lead.
In this regard, Li En, deputy chairman of the Guangdong Clothing and Apparel Industry Association, said: "This big drop in profits can be seen as an early release of risk, indicating that the Li Ning Group has survived."
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