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Li Ning'S Expected Net Profit In The First Half Of The Year Is 1.8 Billion Yuan, With A Year-On-Year Growth Of Over 163%

2021/6/28 16:06:00 0

Li Ning The First Half Of The Year Expected Net Profit 1.8 Billion Yuan Year-On-Year Growth Super

Local famous sports brands—— Li Ning Co., Ltd (hereinafter referred to as "Li Ning" ） Recently, it is expected that the economic profit attributable to the parent company in the first half of this year will not be less than 1.8 billion yuan, an increase of 163% compared with 683 million yuan in the same period of last year. 　　

Li Ning explained the reasons for the performance changes during the reporting period, mainly due to the revenue growth of more than 60% and the continuous improvement of operating profit margin. 　　

Industry insiders believe that Li Ning's product strength is first-class in China, which can compete with Nike and ADI. When the strength of domestic products rises strongly, domestic substitution is a natural process, and it is also an irreversible long logic of its performance growth. 　　

Ye Le, analyst of China Securities There are several reasons for Li Ning's profit improvement exceeding the expected. First, the terminal sales of local clothing brands increased rapidly from April to June under the "Xinjiang cotton" incident; Second, in March this year, Li Ning signed a contract with Xiao Zhan to become the global spokesperson of Li Ning's sports trend products. The top-notch endorsement promoted the continuous growth of sales. Third, it is expected that the terminal discount rate will increase and the operating profit margin will continue to improve. 　　

In Ye Le's opinion, different from the traditional professional sports series, Li Ning launched China's Li Ning brand in response to the "national trend" craze in 2018, and successfully shaped the image of China's Li Ning high-end sports fashion brand by creating fashion sportswear, cross-border cooperation, participating in Paris fashion week, opening characteristic stores, etc. In March 2021, Xiao Zhan signed a contract and became the global spokesman of Li Ning's fashion products. During this period, Li Ning's main brand (big goods) is still positioned as a professional sport. Through technical research and development, the product quality and reputation are improved. For example, in 2019, the latest independent innovation shock absorption technology - "Li Ning 䨻" light bomb technology platform will be released; In 2020, Li Ning released Li Ning's shock absorption and rebound technology system, and launched a new professional marathon product, jueying spring speed running shoes. 　　

In Ye Le's opinion, the design style of Li Ning's footwear products is more diversified and has a broader product style matrix than its competitors. Li Ning's footwear products have a wide range of style matrix compared with the competitive products, such as the retro sports style that pays homage to the classic, the professional sports style with the combination of fashion and practicality, and the fashionable leisure style with avant-garde shape. Thanks to the continuous progress of Li Ning Sports Technology in recent years, the technology content of Chinese Li Ning shoes is higher than that of ordinary sports fashion brands, bringing better wearing experience. Thanks to the continuous progress of Li Ning Sports Technology in recent years, the technology content of Chinese Li Ning shoes is higher than that of ordinary sports fashion brands, bringing better wearing experience. This feature is more reflected in the professional sports shoes of Li Ning, China. For example, the knight errant CRC running shoes of Li Ning in China are equipped with full-length technology, which takes into account the fashionable appearance design and strong sports performance, which can meet the needs of consumers in both daily and sports scenes. 　　

According to the observation, the price band of Li Ning footwear products in China is at a high level. Taking tmall platform as an example, the retail price of Li Ning footwear products in China is 400-1500 yuan / pair, with an average price of 900-1000 yuan / pair. The price band is higher than that of converse and vans, and the average price is higher than filafusion, which is similar to clover series, However, the price band and average price of Li Ning's shoes with modern fashion style and innovative design style are higher. 　　

At the same time, China Li Ning clothing including Chinese elements has been recognized by consumers, and the sales volume and price are in a higher order. For example, ye Le said that seven of the top ten products in China's Li Ning official stores contain elements of Chinese characteristics, and the price level of five of these seven products is higher than the average price of sanitary clothes, which shows that consumers recognize the "national trend" design and are willing to pay a premium for it. 　　

Ye Le said frankly that compared with the top ten monthly sales volume (April 2021), such as filafusion, clover, China Li Ning and China Li Ning sweater with Chinese elements, Li Ning's sweater of China still achieved good sales results at a higher price, The top ten Chinese lining sanitary clothes with Chinese elements in monthly sales also achieved good sales results on the basis of higher pricing than other sports and fashion brands, indicating that consumers are quite satisfied with the integration of Chinese cultural elements into the product design of China Li Ning.

Industry insiders also said that the gene of Li Ning's brand innovation and change is the basis for exploring China's Li Ning series. Since 2010, when the strategy of brand rejuvenation was first proposed, it has become an important breakthrough direction for Li Ning to closely follow young consumer groups and explore new sports segmentation market. 　　

Wang Jiamin, researcher of Southwest Securities As mentioned earlier, the brand power of sports brand is mainly composed of three elements: product, marketing and channel. Under the promotion of product power and marketing power, the brand strength of Li Ning company has been continuously improved, which makes Li Ning brand have relative competitive advantages in seizing the high passenger flow channel and consumer groups in the future. 　　

According to the observation, the marketing advantages of Li Ning Company are mainly reflected in several aspects. First, the sports spirit represented by the founder is connected with the brand value. Compared with other domestic sports brands, it has differentiated marketing advantages, which is similar to the marketing advantages that prefandan brought to Nike in the early stage; The second is to focus on the investment of NBA stars and the core focus strategy of the Olympic gold medal team, and the input-output efficiency of the company's marketing resources is higher. 　　

In addition, the product is the cornerstone of successful marketing. The product advantages of Li Ning Company are mainly reflected in the excellent product design and the iterative shoe system. First, the company's products have won international design awards for many times, and the products are highly recognized in the shoe circle; Second, Li Ning is one of the few sports brands in the world that can achieve the serialization of sports technology, sports events and athletes; Third, the excellent design left by the company's history is also a valuable resource. Some shoes with excellent design are expected to continue to increase the brand value through reproduction (WOW1 launched by Russell in 2012 / 13 season in early 2020) will continue to increase brand value.

　　 Wang Jiamin believes that the scale growth of clothing enterprises mainly comes from channel expansion and promotion of the same store. The growth of delivery volume brought by new stores is the most important driving force for the growth of clothing enterprises. In addition to the factors of greater channel reform, such as the upgrading of store image, the substantial expansion of business area and the obvious improvement of product force, the growth rate of sales volume of single store is generally relatively stable. Other driving factors include the increase of short-term consolidated income brought by the transformation of direct business mode, and the growth of direct e-commerce revenue under the online trend. 　　

Compared with its competitors in the same industry, Li Ning company has room for improvement in the number of stores, store efficiency and profit margin. The medium-term growth space exists and the growth logic is continuously verified by the improvement of business data. In terms of the number of stores, the number of large stores of the company has room for expansion compared with the head enterprises. If China Li Ning product line matures and adds independent stores, there will be enough space for kappa, Adidas classic and FILA. Through the improvement of store area and efficiency, the company's single store sales are divided into North and South regions and vertical historical data ratio, and the overall store efficiency has room for improvement compared with the horizontal comparison of the same industry. Compared with the competitive brands of the same echelon, there is still a certain gap in operating profit margin and net interest rate. After focusing on the main brand, improving product strength and improving channel management efficiency, the company's later business performance still has room for improvement. 　　

In the long run, Wang Jiamin judged that the domestic sports shoes and clothing industry belongs to the high prosperity track of clothing industry, and the industry ceiling is high. First of all, sports is one of the areas where textile and clothing industry is most likely to produce large market value companies, and sports accounts for 1 / 3 of the world's top 20 garment companies with market value; Secondly, the long-term high ceiling of sports industry, sports shoes and clothing per capita annual consumption is only 10% - 30% in developed countries; In addition, in the personalized development stage of the sports industry, the proportion of the world's top two brands in the mature sports market is lower, and domestic brands with differentiated competitiveness still have a chance to break through.