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    Lining Wants To Regain The First Resistance And Long Term Recovery In Half A Year.

    2016/8/12 15:23:00 21

    LiningBrandAnta

    With the founder

    Lining

    With the return of the Li Ning Co, the Li Ning Co has entered a profitable track.

    If the net profit of 14 million 309 thousand yuan last year is still hard to justify the recovery of performance, then the net profit of 113 million yuan in the first half of this year can be seen as a return to its great strides.

    However, Li Ning Co, which is back to the right track, faces many challenges, on the scale of the market.

    brand

    The gap is getting bigger and bigger.

    Anta

    Last year, it took the lead in breaking through 10 billion yuan, becoming the undisputed boss of domestic sports brand.

    Lining wants to win back the first and long.

    Half a year to earn 113 million final recovery

    In the first half of this year, Li Ning Co's operating income was 3 billion 596 million yuan, an increase of 13% over the same period last year, operating profit of 153 million yuan, up 167% from the same period last year, and net profit of 113 million yuan, compared with a loss of 29 million yuan in the same period last year.

    The Li Ning Co ended its three year loss in 2015, when it made a profit of only 14 million 309 thousand yuan a year, and was regarded as a half cut in administrative expenses by the industry.

    However, in the first half of this year, the profit scale was 100 million, which was seen as a formal recovery channel.

    Li Ning Co's cash flow index also doubled.

    Within 6 months, the cash flow generated by the company was 346 million yuan, compared with 167 million yuan in the same period last year.

    At present, net cash in company accounts is 1 billion 335 million yuan, an increase of 89 million yuan compared with the same period last year.

    By the end of June this year, the gross profit margin was 46.7%, compared with 45.2% in 2015.

    Li Ning Co explained that the proportion of new product sales with higher gross profit margin increased, especially direct retail business, which led to a retail discount rate of over 2 percentage points.

    At the order meeting, orders for Lining brand products from franchisees grew for 11 consecutive quarters.

    Orders in the first quarter of 2017 showed a high single digit growth.

    Surprise shop in the second half of the year

    Last year, Lining, who was a handsome boy, launched a revival plan to pform the traditional supply chain with the Internet.

    He has expressed growth in products, channels and retail capabilities.

    Products and channels, such as basketball products, grew by 43% last year.

    The proportion of Internet sales channels has increased from 5% to 30%, and the distribution of stores has been optimized to reduce inventory efficiency.

    Coupled with a large number of old inventory digestion, new products bring higher gross profit.

    The proportion of Lining's self owned stores reached 61.7% at the end of 2015, only 20% earlier.

    In addition, the Li Ning Co started the expansion plan last year, with a net sales increase of 507 to 6133 in that year, with a net sales increase of 313 and a 194 increase in dealer outlets.

    This is the first expansion since 2011, and Li Ning Co has strategically placed new outlets to South market and direct stores.

    The company said it will maintain the target of 300-500 new stores this year.

    Reporters noted that as of June 30th, the number of sales outlets of Lining cards (including LNG and spring labels) in regular shops, flagship stores, factory shops and discount stores was 6169, a 36 increase over the end of last year.

    This means that 264-464 new stores will be completed in the second half of this year.

    On the average, there are at least 44 stores a month.

    Although the company has been out of the crazy shop stage, but the store adjustment is still continuing.

    In the current stores, the franchisee outlets increased by 1.1% to 4671, and the sales outlets decreased by 1.1% to 1498.

    The Li Ning Co adjusted its sales system and organizational structure in 2016, adjusting the original business zoning to the two largest regions in the north and the south. Compared with the same period last year, the growth rate in the North has slowed down by 9.9%, the South has increased by 17.5%, and the international market has increased the most, up 26.6% to 83 million 400 thousand yuan compared with the same period last year.

    During the Rio Olympic Games, Lining brand sponsored the India national team.

    According to foreign media reports, Li Ning Co is expected to pay about $400 thousand for this purpose.

    After the adjustment of the local market and the firm foothold of the domestic market, Li Ning Co is also gaining strength in the international market.

    Back to the peak road and long

    In 2015, Li Ning Co earned 7 billion 89 million yuan in the whole year, and completed 3 billion 596 million yuan in the first half of this year. Its annual revenue is 8 billion -90 billion yuan, and its scale is second in China.

    Although incomes and profits are steadily increasing, compared with the whole sports industry at the draught, it is more difficult to recover the position of the old sporting goods brand elder brother.

    Adidas's revenue in China last year exceeded 14 billion 100 million yuan, which has been growing for six consecutive years and has been paying more and more attention to the Chinese market.

    Last year, Anta realized 11 billion 126 million yuan in revenue and became the first domestic sports brand to sell tens of billions of yuan. It also opened a prelude to the change of sports brand.

    There are foreign brands monopolizing the top, and there are popular brands to grab the market at a low price. This is totally different from the time when Lining reached the peak in ten years of sporting goods gold. More importantly, consumers are also changing. They want to be professional, fashionable, experience and deliver goods to their homes.

    Li Ning Co said that the multi-channel cross platform upgrading of user experience and the cultivation of brand loyalty are the main priorities of the first half of 2016. Building Lining's value road is the future direction of development.

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