Since the appearance of Li Ning brand at Paris fashion week with Chinese style elements in 2018, the trend of domestic goods has officially set off. This year’s Xinjiang cotton incident has further catalyzed the progress of national tide substitution, and the sales of domestic goods are booming.
As an excellent example of the national trend, Li Ning group released the interim financial report of 2021 on August 13. From this report card, we can explore the commercial value brought by the trend of domestic goods.
Half year revenue 10.2 billion
All channel sales rose
According to the interim financial report released by Li Ning group, by the end of June 2021, the company’s operating revenue had increased by 65% year-on-year to RMB 10.197 billion, which was the first time that the company’s half year revenue exceeded the 10 billion mark.
During the period, the net profit increased by 187.2% year-on-year to 1.96 billion yuan. The operating leverage was enhanced, driving the operating profit margin to rise by 10.4 percentage points to 24.9%.
The high performance is inseparable from the stable situation of epidemic prevention and control in China and the trend of domestic goods.
The financial report said, “thanks to the effective epidemic prevention and control of the Chinese government, the domestic epidemic situation is relatively stable, and the group’s sales improvement measures during the epidemic period continue to pay off.
At the same time, it benefits from the improvement of domestic consumers’ requirements for a healthy life and the full affirmation and strong support for domestic sports brands. ”
Taobao data show that in March this year, the average daily sales of Li Ning tmall flagship store was 8.78 million yuan.
Subsequently, the Xinjiang cotton incident put domestic brands on the “fast bus”. Li Ning’s average daily sales reached 9.99 million yuan in May, which was significantly higher than that two months ago.
According to the financial report, in the first half of the year, all kinds of sales channels increased – the sales of e-commerce channels increased by 77.8% year-on-year; Offline terminal sales also recovered rapidly, with a significant increase of 88.5% in direct business sales; The order volume of franchised dealers increased significantly, and the sales revenue increased by 47.7%. Including online and offline, the overall retail flow achieved a low growth of 90% – 100%.