Li Ning’s annual average profit growth of 39.3% over the past five years

The annual report shows that from 2001 to 2005, Li Ning's turnover maintained an annual growth of 35.1%, and the company's profits also maintained an increase of 39.3%. In 2005, the company's turnover reached 2.45 billion yuan. So, in addition to external factors such as national fitness fever, what other internal factors have caused Li Ning's performance to maintain such rapid growth?

The brand is the business card of the enterprise product and the most important basis for the consumer to identify the company. At present, companies have fully realized the role of the brand because the brand not only has knowledge and adhering to the concept, but also brings competitive advantages to the company and directly creates value.

According to research conducted by related organizations: In 2005, the Li Ning brand continued to maintain its cognitive advantage, and at the same time, it also significantly improved the level of brand preference. It is worth noting that due to product attributes, the growth history of the Li Ning brand has been inseparable from the sports sponsorship activities over the years. Since last year, Li Ning's cooperation with international manufacturers, institutions, and top athletes and sports teams has established the international image of the Li Ning brand and has also strengthened the brand's professional image.

A series of international business actions attracted the attention of Harvard Business School. This business school, famous for its case teaching, also began to study Li Ning's marketing strategy.

Professor Luke, who was responsible for writing the case of Li Ning Company, said in an interview with reporters that the case of Harvard Business School does not mean that the company is perfect, but this company must be special. Luke believes that from the perspective of marketing strategy, Li Ning has sponsored four “gold medal” national teams of Chinese gymnastics team, diving team, shooting team, and table tennis team, as well as the Spanish basketball team that just won the 2006 World Men's Basketball Championship. Ways are good measures to establish a brand and they are also very good ideas.

Innovation is the foundation of the company's future competition. Innovation can enable companies to distance themselves from their competitors and allow them to maintain their advantages in the market. In 2004, Li Ning company did not hesitate to spend heavily, and invited the technical director of the original Nike company Knight to be responsible for the research and development of patented “buffer protection” technology with independent intellectual property rights. At the same time, it hired another American sporting goods design company, DRD, to design its sports shoes as a whole. In September 2006, under the cooperation of a local designer, Knight took inspiration from the arched architecture of the ancient Zhaozhou Bridge in China. After hundreds of scientific experiments from materials to ergonomics, Knight finally launched the name Li Ning. "Sport shoes. According to relevant experts, this is another great innovation in the field of sports shoes since Nike invented the air cushion shoes.