Home / Knowledge / News / Apparel/Garments / Li Ning unveils revival plan to revitalize channels
Li Ning unveils revival plan to revitalize channels
17
Dec '12
Li Ning Company Limited, one of the leading sports brand companies in China, announced that as part of its broader transformation plan disclosed in July this year, its Board of Directors has approved the management's proposal to launch a "Channel Revival Plan", which is expected to accelerate the Group's inventory clearance process and enhance sales channel profitability.

Li Ning's transformation plan was developed to strengthen the Group's financial performance and to position Li Ning for long-term profitable and sustainable growth. Since the announcement of its transformation plan in July this year, the Group has reported good progress on a number of initiatives, including investing in branding and product development, building better supply chain and retail operations for the Group, downsizing its cost structure, as well as successfully recruiting a number of new talents to the Group in the past few months.

Mr. Li Ning, Executive Chairman of the Group, commented, "Despite the current challenges faced by the industry as a whole, we have an ambitious revival plan to definitively address channel issues. The results of the pilot scheme for the Channel Revival Plan have been highly encouraging. We expect the combined actions to strengthen the long term productivity and profitability of our sales channels, which will in turn support the profitable growth of our company."

As a result of focused diagnosis and field testing, the management of Li Ning concluded that reducing old inventory, improving product freshness and optimizing merchandising, coupled with network rationalization, is the best path to recovery for the sales channels. To achieve this, the Group has been working closely with several top channel partners and has successfully rolled out a number of pilot tests of the Group's key initiatives, which will now be scaled up to aggressively address inventory issues and support its channel partners to strengthen their operational capabilities and profitability.

Mr. Jin-Goon Kim, Executive Vice Chairman of the Group, commented, "The wholesale business practice that had allowed Li Ning to quickly capture market share in the Chinese sportswear industry through aggressive network expansion was no longer able to respond quickly to the dramatic slowdown and saturation of the industry in the past few years. Over-expansion has caused channel partners' inventory to build up and their store productivity and profitability to decline. The management of Li Ning Company believes that it is necessary to put in place a comprehensive transformation blueprint, including a one-time channel revival plan at a scale large enough to fix the problems that had built up in the channels over the last few years."


Must ReadView All

Courtesy: Business wire

Textiles | On 28th Jul 2017

Taiwan launches new products at Outdoor Retailer show

The Taiwan External Trade Development Council (TAITRA) hosted the...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Fashion | On 28th Jul 2017

Kering’s first half consolidated revenue up 28.2%

Kering has announced a consolidated revenue of €7,296.2 million for...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X