Li-Ning: apparel, southern China dominated in 2021
Full-year revenues for Beijing-based sportswear brand Li-Ning grew 56.1% to $3.55 billion (¥22.57 billion) in 2021, the company announced recently.
Attributing this increase to the effectiveness of the Chinese government's anti-covid measures, plus the enthusiasm generated by both the Summer Olympics in Tokyo and the Winter Olympics in Beijing, in particular, Li-Ning also cited Chinese consumers’ increased support of domestic brands as a reason for its significant rise in revenue over the period, which ended December 31, 2021.
The company further spotlighted the part played by national governmental policies including the National Fitness Plan (2021-2025) and the 14th Five-Year Plan for Sports Development, which aims to encourage 38.5% of Chinese residents to participate in physical exercise “frequently” by 2025, in contributing towards a favourable climate for sportswear consumption in China at present.
Almost 99% of the brand’s revenue last year came from its customers in mainland China, with international markets making up just over 1% of the total. Digging deeper into this geographical split, southern China - home to top-tier markets such as Shanghai, Chongqing and Guangdong, for example - slightly dominated over northern regions, responsible for 50.2% of Li-Ning's revenues. By contrast, northern China (where the country’s capital, Beijing, is located, along with fellow tier-one city Tianjin), took a 48.5% slice of the action.
In terms of product mix, apparel represented the company’s largest category in 2021 (taking a 52.4% share), followed by footwear (42.1%) and, lastly, equipment and accessories (5.5%).
The brand’s eponymous founder, executive chairman and joint chief executive, Li Ning, commented: “With the support of relevant national policies, the health consciousness of the [Chinese] public has been rising and the consumption demand for sporting goods has remained robust.
"[Thanks to] strong support from these national policies, we will proactively explore business opportunities and market potential in a bid to build a more professional, unique and fashionable image of the Li-Ning brand and put out motto, ‘Anything is Possible’, into real practice.”
Image: Li-Ning via Instagram.
