#记录我的2024#在当前的市场上, Li Ning is one of the most famous fashion companies in China, as a synonym for trendy sportswear, the development of Li Ning has also attracted much attention from the market. How should the development of Li Ning be analyzed?
1. Is Li Ning getting more and more expensive?
According to the New Weekly, "Li-Ning is really getting more and more expensive." ”
Two or three years ago, there were consumers who complained like this. It's just that at that time, Li Ning was in the limelight, and there were long queues in offline stores, and limited editions of several thousand yuan were sold out at every turn, and the volume of such comments was not large.
Recently, domestic listed sports brands have released their 2023 financial reports, and Li Ning has become the only company with a decline in profits, with revenue of 27.598 billion yuan, a year-on-year increase of 7%, and a net profit of 3.187 billion yuan, a year-on-year decrease of 21.58%. Anta, which is firmly in the top spot, has a revenue of 62.356 billion yuan and a net profit of 10.236 billion yuan, a year-on-year increase of 34.9%.
In 1990, with the help of Li Jingwei, the founder of Jianlibao, Li Ning, the prince of gymnastics, who had retired for two years, founded a personal sports brand with his own name. At the 11th Asian Games held in Beijing that year, Li Ning persuaded the organizing committee to become a sponsor of the event on the grounds that "the adoption of domestic brands is conducive to building the self-confidence of the Chinese people", and became an instant hit.
As the first domestic brand to sponsor the Asian Games, Li Ning's starting point is undoubtedly very high. Since then, it has won the sponsorship of the Chinese delegation for four consecutive Olympic Games.
As for Li Ning's main brand, the new price of the "ultra-light" series has risen from 499 yuan in 2018 to 599 yuan in 2021, and the new model of the "Liejun" series will be sold for 699 yuan in 2020 and will reach 1099 yuan in 2023. The price increase is so fast that consumers cannot be unaware, and Li Ning inevitably leaves people with the impression that "it has become trendy and expensive".
2. Can the increasingly expensive Li Ning be recognized by consumers?
In recent years, the price of goods of the Li Ning brand has gradually risen, which has aroused widespread attention in the market. For this phenomenon, some people believe that Li Ning is constantly improving its brand image and product quality, thereby achieving value growth; Others are concerned that the high prices may make Li-Ning lose the favor of some consumers. So, can the increasingly expensive Li Ning be recognized by consumers?
First of all, tracing the starting point of the price increase of the Li Ning brand, 2018 is a key node. At that time, the birth of the sub-brand of "China Li Ning" not only meant a bold attempt by the brand, but also a precise reshaping of market positioning. At New York Fashion Week, the big show with the theme of "enlightenment" successfully attracted global attention with its distinctive red and yellow color scheme, retro and modern design style, and made the word "national tide" deeply rooted in the hearts of the people. This appearance is not only a display of clothing, but also a display of cultural self-confidence, marking the magnificent transformation of Li Ning from a traditional sports equipment supplier to a fashion trendsetter. The success of this strategy has laid a solid foundation for subsequent brand upgrades and price adjustments.
Secondly, with the frequent appearance of "China Li Ning" on the international stage, its design team continues to innovate, integrating Eastern and Western cultural elements to create a series of eye-catching works. These designs are not only visually striking, but also work on craftsmanship and materials, striving for both quality and innovation. However, good design often comes with high R&D and production costs. The creativity of designers, the application of special materials, and the complex manufacturing process are all important factors that push up the price of products. Therefore, the increase in the price of Li Ning reflects the brand's investment in product design and quality upgrades, as well as its self-requirements as a high-end brand positioning.
Third, in recent years, with the rise of "national tide", more and more consumers have begun to pay attention to local brands. In this context, the Li-Ning brand has successfully attracted the attention of a large number of consumers with its profound cultural heritage and unique design style. Especially in 2021, due to the controversy related to international brands, consumers began to turn to domestic brands on a large scale, and Li Ning also took advantage of this wave of traffic and wealth.
Fourth, although we admit that the high-end of Li Ning is in the right place at the right time, the market is always full of uncertainties. Although the "national tide" trend has brought huge market opportunities to Li Ning, consumer demand is not static. In recent years, with the fluctuation of the economic environment and the maturity of personal consumption concepts, more and more consumers have begun to pursue higher cost performance and tend to consume rationally. Li-Ning's continuous price increases, to a certain extent, run counter to this trend, causing dissatisfaction and doubts among some consumers. How to meet consumers' expectations for cost-effective performance while maintaining the high-end image of the brand has become a major challenge faced by Li Ning.
Therefore, the price increase of Li Ning brand is the inevitable result of brand transformation and upgrading, but how to maintain the brand image while taking into account consumers' pursuit of cost performance is a problem that Li Ning needs to seriously consider and solve.