Li Ning interpretation interpretation: Shoe sales revenue accounted for five years in five years, the first super clothing insisted on opening a big shop

Economic Observation Network reporter Zheng Yanxin In the first half of 2022, Li Ning's shoes sales revenue exceeded the clothing sales revenue for the first time in five years.

Li Ning (2331.HK) released the mid -term performance report showed that in the first half of 2022, Li Ning's shoes revenue accounted for 54.5%of the total income, and clothing revenue accounted for 39.5%of total income. In the first half of 2021, Li Ning's shoe sales revenue accounted for 45%of total revenue, and clothing sales revenue accounted for 49.6%of total revenue.

On August 12, at the mid -term performance conference, Li Ning Company co -CEO Qian Wei said that the proportion of shoes products increased because it had been deployed last year. Essence

Qian Wei said that Li Ning's company has experienced the transformation from wholesale thinking to retail thinking. Li Ning believes that this is a business strategy that has changed from traditional business ideas to wholesale -based business ideas to focus on goods and efficiency.

This operating strategy also prompted revenue growth. In the first half of the year, Li Ning's overall operating income was 12.514 billion yuan, an increase of 22%year -on -year, and net profit was 2.189 billion yuan, an increase of 11.57%year -on -year.

Cheng Weixiong, the analyst of the shoe and clothing industry, told reporters that for Li Ning, the proportion of shoe occupation can surpass the proportion of clothing is a very good information, indicating that Li Ning can quickly adjust the product strategy after the national tide. The district lay flat, but made breakthroughs in the functionality and fashion of shoe products, and pulled back many new users who originally favored international brands.

Operating adjustment

In the first half of 2022, shoe revenue was 6.759 billion yuan, an increase of 47.1%year -on -year, and clothing income was 4.907 billion yuan, a decrease of 3.1%year -on -year.

Specifically, in the movement of shoe products, in the first half of the year, Li Ning launched new products such as Wade's way and actual shoes on basketball shoes. Internal cooperation of products, sales, e -commerce and other departments, connect online and offline, from formulating business goals to sales follow -up, and follow -up of full -link week. Qian Wei introduced in the first half of the year "Running shoe sales are close to 2 million pairs," this running shoe is expected to be the first explosion in Li Ning's history. " In addition, in the first half of the year, Li Ning also launched a new running shoe of the upper technology.

Not only that, Li Ning has adopted a more detailed retail operation strategy. Qian Wei said that in the first half of the year, the group set up a monthly inventory target management mechanism around the annual business and inventory control goals. Do a better business in inventory. "

Qian Wei introduced that refined management has a great improvement of inventory. In the first half of the year, Li Ning's inventory weekly turnover was 55 days, and the structure of the library age was further improved. -20%of the mid -range growth, and the proportion of new products increased by 6%.

Open a big shop

According to Qian Wei, in the first half of the year, the total sales area of ​​the store increased by 20-30%, and the average area of ​​a single store reached 220 square meters. The average area is 320 square meters.

It can be seen that in the first half of 2022, Li Ning continued its store strategy in the past three years, opened high -efficiency stores such as flagship stores and benchmark stores, accelerated the closure of inefficient and small -scale stores, and opened stores in shopping malls and Ole channels.

In the first half of 2022, Li Ning opened or upgraded landmark flagship stores in Hangzhou, Xiamen, Shanghai, Wuhan, Kunming, Shijiazhuang and other places.

Why do you still have to open a big shop at this time? Qian Wei explained that he hopes to show consumers through the flagship store to deepen the mutual understanding between consumers and brands through flagship stores. "We hope to let consumers understand Li Ning more through flagship stores. To learn more about consumer demands and continue to provide product experience, sports experience and purchase experience that can meet consumer demands in the future, "he said that offline passenger flow began to recover in July, and it performed better in August than in July. Some.

As of June 30, 2022, in China, a total of 5,937 sales points (excluding Li Ning Young) were 5,937, an increase of 65 compared with the end of the previous quarter, and two net increases to date this year. The number of sales points in Li Ning Young has a total of 1,175, an increase of 40 nets from the end of the previous quarter, and this year has decreased by 27. Therefore, the total sales point of Li Ning brand (including Li Ning's core brand and Li Ning Young) regular stores, flagship stores, China Li Ning fashion stores, factory stores, etc. are 7,112.

At the end of the performance conference, Qian Wei said, "In an environment where the epidemic is constantly changing, we are pursuing the preparation of business maximizing business when opportunities, and when the external environment begins to change We have always maintained a state of cautious and optimistic. "

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