Li Ning’s “transformation plan” proves costly
28/07/2014
It attributed the loss, which it estimates may be as much as $90 million for the six-month period, to up-front expenses it has incurred in setting up a “transformation plan”. This is broadly based on moving from being a wholesale-led business to being a retail-led one “to meet the demands of the increasingly sophisticated consumers in China”, but has involved major infrastructure investments, including the construction of the brand’s own rail network.
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