The Stock Price Of Li Ning (02331. HK) Is Fluctuating

From the ups and downs of the stock price of Hong Kong stock Li Ning (02331. HK), it can be clearly seen that in the past two months, the stock price of Li Ning has been changing in a weak trend since it hit a high of HK $82 on January 30, and has now fallen to nearly 30%. This result is a great blow to any enterprise. This phenomenon has attracted the attention of many people in the industry. After all, in recent years, the rising trend of domestic brands is very obvious, which makes Li Ning feel unloved.

In addition, the company disclosed the 2022 financial report with a significant decline in both revenue and net profit. Many data show that the crisis of Li Ning may take more time to resolve. On April 10, Sina.com published an article by the author of the platform, "Guochao Fading Hot, Li Ning Losing Favor?", which pointed out the reason for this relatively directly. It can be generally summarized as follows: Li Ning can't sell goods. The objective reason is that the general environment market is cold, but there is also a factor of Li Ning's product strength. After all, at that time, the footwear and clothing industry market was hit by the epidemic, and many brands were developing in a low-key way. However, despite the downturn in the market, Li Ning was still high-profile. The implementation of two major policies, "discount promotion and fast store opening", was tantamount to an infeasible path.

According to the financial report data, in 2022, there will be a large number of international brands with overstocked inventory. The value of the sports brand Adidas in the same industry will be 5.973 billion euros, and the inventory of Nike will be 8.9 billion dollars. In contrast, the inventory scale of domestic brands is not so large, but the growth rate is fast. Among them, the overall inventory of Li Ning is 2.428 billion yuan, up 37%. The rapid expansion of the scale of goods is inseparable from the lengthening of the inventory cycle of Li Ning. According to the reported data, the inventory cycle of Li Ning will increase from 54 days in 2021 to 58 days in 2022.

A very interesting sentence on the Internet: I used to buy Li Ning because I had no money; Now, I have no money to buy Li Ning. In 2021, Li Ning opened its first store in 1990 in Beijing Fangcaoping Shopping Center, next to Rolex, lululemon and other international brands. The sales in the store said that we never give discounts, and many of them are classic. What seems to be a joke makes people realize that Li Ning is becoming more and more expensive, which has a lot to do with its own brand strategy. Careful netizens will find that Li Ning is a single main brand. After Li Ning's basketball shoes and running shoes have reached the price of 2000 yuan, it seems that no young people are willing to pay for them. After all, the rise of sportswear brands is not achieved overnight.