With the rise of national fashion, consumers’ emphasis on physical exercise and health after the epidemic, and international sportswear giants such as Nike and adidas losing ground in the Chinese market, domestic sportswear brands are facing a rare opportunity to overtake in history.
Faced with this situation, analysts have tilted the balance towards domestic sportswear brands such as Anta and Li Ning.
Tianfeng Securities recently released a research report stating that it maintains Li Ning’s “buy” rating and continues to be optimistic about the brand’s upward drive in product operations and the release of expansion dividends. It is expected that Li Ning’s offline business will continue to accelerate in December compared with November, with same-store discounts and sell-out rates. It will continue to lead the industry. The report also updated Li Ning’s profit forecast for this year, with net profit expected to be between 3.8 billion and 6.2 billion yuan.
China Merchants Securities International also previously stated that the “national trend” trend in the domestic sportswear industry will continue. Brands including Nike and adidas are facing unprecedented fierce competition in China. The bank maintains the “buy” of Anta, Li Ning and Xtep. Rating.
Thanks to this, Li Ning has recorded double-digit growth for three consecutive quarters this year and is the most stable brand in the domestic sportswear field. In the third quarter ended September 30, Li Ning’s overall same-store sales recorded a high-end growth of 20% to 30% year-on-year, and retail sales were a low-end growth of 40% to 50%.
By channel, Li Ning’s direct retail channels recorded same-store sales growth of 30% to 40%, wholesale and franchised dealer channels recorded mid-range growth of 20% to 30%, and e-commerce business also achieved 30% to 40% growth. Growth in the middle.
What makes the industry feel even more oppressive is that based on the existing more than 6,000 stores, Li Ning is accelerating to occupy more market shares. On December 24, the brand opened four new flagship stores in Beijing, Liuzhou, Shenyang and Shanghai in one go, aiming to provide consumers with a better product experience, sports experience and shopping experience. The brand’s flagship store in Nanning, Guangxi is also about to be unveiled.
In terms of products, Li-Ning is also constantly broadening its track. In November, it released a new independent high-end sports fashion brand LI-NING 1990 (Li-Ning 1990), which attracted widespread attention from the industry and consumers.
Unlike China’s Li-Ning, which absorbs fragments of traditional elements, Li-Ning 1990 is a systematic review of the brand’s classics of more than 30 years. In addition to retro trendy sports suits, Li Ning 1990 also includes casual commuting styles suitable for daily use. The purpose is to use the functional fabrics, production techniques and tailoring methods of sports brands to form a more three-dimensional sports fashion brand. This is also Li Ning. An area the group has never entered before.
Li Ning Group stated that Li Ning’s classic return in 1990 carries the precious cultural and spiritual assets of the brand’s more than 30 years of development since its establishment, and embodies the brand’s classic-eternal style concept. It is reported that Li-Ning 1990’s first store in the world officially opened in Parkview Green, Beijing on November 6, and its first store in southwest China, Chongqing Raffles City store, also opened on November 13.
According to industry insiders, the launch of Li Ning 1990 is another important milestone for Li Ning Group in terms of brand power. For the Li Ning Group, which has always adhered to the strategic layout of “single brand, multi-category, and multi-channel”, the prefix “new independent high-end fashion brand” of Li Ning 1990 is almost an unprecedented priority for the Li Ning Group. It can also be said to be the first priority of the Li Ning Group. The sub-brand shows that the group attaches great importance to this brand.
At the beginning of this month, Li Ning also followed the trend and created a fashion music festival with the theme of “Imagination” in Sanya, Hainan, using the power of youth culture to creatively present the new spring and summer series of 2022. Founders Li Ning and Jackie Chan were both present. attended, and the number of readings and discussions on related Weibo topics approached 200 million.
As Anta’s biggest domestic rival, Li Ning has obviously realized that if it wants to use a single-brand strategy to compete with the latter’s multi-brand matrix, it means developing more product structures and layers to expand its business territory, and to The best support for the fashionable attack is brand power.
</p
