Sportswear maker Li Ning expects same-store sales (SSS) for the fourth quarter of 2010 grew roughly 3.6% y-o-y, while full year SSS growth came to 3.9% y-o-y, the company announced in a strategy outline published on January 17. Full year 2010 revenue growth is expected to be line with the growth of the overall Chinese sporting goods industry, the report said. The company also said it will not see improvement in its pre-order growth rates for the third and fourth quarters of 2011 and expects lower margins as a result of its wholesale discounts policy reform, the report said.
The company plans to realign its strategic positioning to reflect a transformation in the sporting goods industry, according to the report. Li Ning plans to raise its budget for spending on brand marketing and promotions to highlight brand personalities, target more customers with higher-end goods, increase its footwear business as a proportion of its overall business, offer regionally differentiated products and boost the number of sixth-generation stores through openings and renovation of existing stores, the report said. The company will also increase investment in human resources for its R&D and corporate management, encourage consolidation among its less efficient sub-distributors, and introduce a new wholesale discount policy to help distributors raise their profit margins, the report said.
Li Ning previously denied rumors that it would close 500-600 stores as part of its sub-distributor consolidation plans, reiterating its target of 7,900 stores by the end of 2011. CITATION http://www.chinaleather.org/eng/show.php?itemid=5803
The company plans to realign its strategic positioning to reflect a transformation in the sporting goods industry, according to the report. Li Ning plans to raise its budget for spending on brand marketing and promotions to highlight brand personalities, target more customers with higher-end goods, increase its footwear business as a proportion of its overall business, offer regionally differentiated products and boost the number of sixth-generation stores through openings and renovation of existing stores, the report said. The company will also increase investment in human resources for its R&D and corporate management, encourage consolidation among its less efficient sub-distributors, and introduce a new wholesale discount policy to help distributors raise their profit margins, the report said.
Li Ning previously denied rumors that it would close 500-600 stores as part of its sub-distributor consolidation plans, reiterating its target of 7,900 stores by the end of 2011. CITATION http://www.chinaleather.org/eng/show.php?itemid=5803
