Li Ning bounces back somewhat with rise in turnover

By

Matthieu Guinebault

Published
Sep 1, 2014

The Chinese manufacturer has attained 381 million euros (3.137 billion yuan) in sales in the first half of its fiscal year, or an increase of 8% stemming in particular from improved retail sales coming after efforts to consolidate its directly owned store network.

The results come at a time when the company is pursuing a “Transformation Plan” aimed on one hand at strengthening its distribution network by "filling in the holes", and on the other at optimizing its operating costs.

By strengthening its directly owned store distribution network and focusing its range on performance sportswear while deemphasizing sports lifestyle, the group intends to take advantage of the quickly growing consumption of the middle class.

As of the end of 2013, Li Ning had a network of 5,915 brand stores, as compared with 8,255 two years earlier - one consequence of the plan favoring monobrand over multibrand.

Following a complicated 2012, the brand posted a turnover last year of 682 million euros, down 13%. For the current year, Li Ning aims to strengthen its entry-level and premium product ranges.