Li-Ning continues its rise amid ‘new norm’
Despite a challenging operating environment, impacted by pandemic-related lockdowns and increased raw material costs, Chinese sportswear brand Li-Ning has announced a year-on-year revenue increase of 21.7% for the six months ended June 30.
Total revenues achieved over the period amounted to $1.8 billion (¥12.4 billion).
China’s appetite for at-home fitness – stimulated by the effects of covid-19 in Shanghai, Shenzhen and other major cities during the first half of 2022 – has become something of a “new norm”, the company said, which it has adapted to by “leveraging technological strengths” across online platforms.
Especially owing to urban lockdowns in its home country, the growth rate of direct-to-consumer physical retail slowed, although still rose by 10.8% year on year. The business adapted by actively developing e-commerce livestreaming instead, as well as by cultivating “more efficient and precise promotion and advertisement placement”. This led to increased stability in online revenue streams, which grew by 19.2% on the year previous.
Franchisee revenue saw a further boost of 28.5% over the comparative period, demonstrating distributors’ confidence in Li-Ning’s recovery efforts and continued optimism about the local market in general, it added.
The past six months also saw group founder and executive chairman, Li Ning, assume the role of joint chief executive alongside executive director, Kosaka Takeshi.
Product-wise, as of June 30 the Li-Ning brand had sold nearly 2 million pairs of its Ultra-Light 19 running shoes, first launched back in December 2021. The annual sales target for the model is reportedly 3 million pairs.
Image: Li-Ning via Instagram.
