It's completely changed! Li Ning shoes are hard to find, and the stock price of shoes has soare-Bags / Shoes & Accessories-Hmeonline: Leading B2B Source & Platform Since 2005

With the rise of the national tide, Li Ning is completely on fire!

A Li Ning shoe with a sale price of 1499 yuan, the price reached 48889 yuan on the app, an increase of 31 times. It is understood that Li Ning's multiple series of main products are difficult to find.

Benefiting from the increase in sales, Li Ning's stock price has also been rising since March. It reached a high of 72.95 yuan per share on May 7. As of the close of the market on May 7, the stock price was reported at 68.5 yuan per share, with a total market value of over 170 billion yuan. During the period from March 9th to May 7th, Li Ning's stock price has risen by 67.07%.

The rise of the national tide, Li Ning's sales and performance are flying together

Li Ning Company announced the group's 2020 annual performance and stated that it will continue to promote the "single brand, multi-category, multi-channel" strategy to enhance product strength and brand power, steadily increase profitability, and further enhance brand resilience.

On March 19, 2021, Li Ning Company announced its 2020 financial report. During the reporting period, the company achieved total revenue of RMB 14.457 billion, an increase of 4.2% over the same period in 2019. Gross profit increased 4.2% from RMB 6.805 billion in 2019 to RMB 7.09 billion. The overall gross profit margin was 49.1%, the same as the previous year.

Younger brand strategy successfully out of the circle

At the beginning of its establishment in the 1990s, Li Ning was just a traditional domestic sports brand, mainly dealing in sports shoes, clothing, equipment and sports accessories. Today, Li Ning has long become one of the most popular national fashion brands among young people, leading the new fashion of the sportswear industry with the concept of "national style + trend". "Fashion" and "fashion" have long become important keywords surrounding Li Ning.

(From Qingbo public opinion)

Since the return of Li Ning, the founder of Li Ning, in 2014, it has investigated young consumers a lot and has become a representative of the "national tide".

In 2018 and 2019, Li Ning took part in Paris Fashion Week and New York Fashion Week with the themes of "China Lining" and "Xing" respectively. After logging into Fashion Week for the second time, the volume of discussions on Weibo topics reached 200 million, which triggered a wave of discussions on social media. In 2018, the total sales of China's Li-Ning clothing series exceeded 550W, and the sales of shoe series exceeded 5W, and the new product sold-out rate exceeded 70%.

Show products such as "Wu Dao" that went online after the fashion week were quickly sold out, and themed products such as "Wonder in Sichuan" and "Changan Youth" showed their grasp of the national trend. The blooming series inspired by Chinese flowers, and the "Dunhuang-Tuo" series jointly launched by the Dunhuang Museum are all popular among young consumers.

In addition, Li Ning has continuously collaborated with major brands and IP to cross-border. Super IP Star Wars, People's Daily, National Treasure, The Palace Museum, etc. have all had in-depth cooperation with Li Ning.

Today's "China Lining" seems to be among the top trendy brands, and "Chinese elements + trendy design" firmly captures the preferences of the new generation of young consumers.

Research by Zheshang Securities shows that the main consumers of China's Lining are 18-25 years old. The post-95s and post-00s have a significantly higher awareness of China's Lining than other age groups. China's Lining is also priced at 1300-1400 yuan. Li Ning also helped the Li Ning brand to regain its position in the most central business district of first-tier cities.

According to the research report of Tianfeng Securities, the Li Ning brand has a constant innovation and exploration gene. Since the "Li Ning born in the 90s" brand rejuvenation strategy in 2010, it has successively launched the "Lining X Jessica", LNG, and Li Ning spring labels, and finally borrowed it in 2018. The New York Fashion Week platform has successfully launched the China Lining series, and endogenous brand innovation is the foundation of China's Lining success.

Layout of the national style and trend, completed the remodeling of the traditional mass sports brand image, and the Li Ning brand completed the expansion of the brand culture of "the essence of traditional culture x the spirit of athletes", and the brand power has been steadily improved.

Layout of the national style and trend, completed the remodeling of the traditional mass sports brand image, and the Li Ning brand completed the expansion of the brand culture of "Traditional Culture Essence X Athlete Spirit", and the brand power has been steadily improved.

Domestic brands benefited after Xinjiang cotton incident

After the "Xinjiang Cotton" incident (March 24), Anta immediately withdrew from the BCI organization and expressed its position. Li Ning even directly released Li Ning's label on the Internet, which has always been clearly written Li Ning. The product uses cotton from Xinjiang.

In one week, the number of products containing "Xinjiang cotton" increased 3.4 times compared to the week before the 24th, and sales increased 13.5 times. At the same time, the categories of online product names with the "Xinjiang cotton" logo have increased significantly.

According to statistics from Zheshang Securities, after the outbreak of the "Xinjiang Cotton" incident, the sales of Li Ning's official flagship store 3.24-4.4 increased by more than 200% year-on-year. Anta Sports also increased by more than 100%. At the same time, Li Ning, Anta and other brands' "limited editions" The price of sneakers has risen sharply.

Credit Suisse issued a report on China's sports goods industry and pointed out that in April, the sales of Tmall flagship stores accounted for 30% to 40% of the total online sales of sports brands in the Mainland. Before and after the May Day holiday, domestic brands experienced a collective increase in sales.

According to Credit Suisse's statistics, from April 27 to May 3, compared with the same period in 2020, the sales of Li Ning's "China Lining" brand in Tmall flagship stores increased by 419%, followed by Anta's increase of 46.3% and Xtep's increase of 29.3%.

In sharp contrast, the April sales of brands such as Adidas and Nike on Tmall’s flagship stores fell sharply, all of which were down compared with the same period last year. Among them, Adidas' sales in April fell 78% year-on-year, and Nike's April sales fell 59% year-on-year. Uniqlo's April sales fell more than 20% year-on-year.

In this regard, economist Lang Xianping believes that there are three reasons for Li Ning’s hot sales and Nike’s sales plummeting: one is the high level of manufacturing in China and the quality is guaranteed; the second is that fashion brands are more likely to attract the attention of young people; the third is the national complex and patriotic complex, etc. Multi-factor inclusions.

The Zheshang Securities Research Report pointed out that 10 years ago, overseas brands relied on their advantages in supply chain management, retail management, and brand power to expand their market share in the context of the awakening of brand awareness among Chinese consumers. The status of domestic apparel brand enterprises has improved significantly in the past five years. The rise of self-confidence in the consumer culture of the post-95s and even post-00s has allowed Chinese brands to continue to gain more attention from young people, and many areas are surpassing overseas giants.

In the down apparel industry, Bosideng has returned to the world's number one in the industry. Zheshang Securities stated that the Bosideng Group’s business revenue growth in the 2021 fiscal year will be more than 25%, and the revenue is expected to exceed 12 billion yuan. Based on the current euro-renminbi exchange rate (7.7:1), after the 2021 fiscal year ends, Bosideng Group's down jacket business revenue will once again surpass Moneler, and return to the industry's world No.

GF Securities research report pointed out that in the short term, the continuous launch of Li Ning's technology series products is expected to enhance the company’s main brand’s performance growth and enhance its brand effect, superimposing the Xinjiang cotton incident.

After the impact and the drainage role of the spokesperson Xiao Zhan, the company's short-term performance is expected to maintain a high growth trend. In the long run, Li-Ning’s upward momentum is still halfway through. GF Securities believes that: (1) The industry has accelerated the formation of a consensus to increase the proportion of online revenue, and Li-Ning’s e-commerce has a lot of room for improvement; (2) Li-Ning’s channels are not yet saturated. There is still a lot of room for expansion; (3) There is still room for improvement in the efficiency of Li Ning's offline operations, and the store average can be continuously improved by expanding storefronts and opening high-efficiency stores.