Li Ning Formulates Multi-brand Business Strategy to Promote AIGLE Brand Products

On September 5, Chen Weicheng, executive director and chief financial officer of Li Ning Co., Ltd. (2331.HK, hereinafter referred to as “Li Ning”) stated that since the end of last year, the joint venture between Li Ning and the internationally renowned outdoor sports brand AIGLE has progressed normally. AIGLE stores opened in Beijing, Shanghai, Hangzhou and Shenzhen. To significantly speed up the pace of AIGLE's expansion in the Chinese market, Li Ning will soon make AIGLE branded sports products produced in China, reducing the average retail price of its products to 50. %.

At the end of last year, Li Ning formulated the "Multi-Brand Business Strategy" with the intention of creating a second brand in the field of sports and leisure apparel outside the Li Ning brand. Subsequently, it signed a strategic cooperation agreement with French fashion outdoor brand AIGLE and announced the establishment of a joint venture. The joint venture will have the franchise for the production, marketing, distribution and sale of outdoor leisure activities, extreme sports apparel and footwear products marked with AIGLE's application or registered trademarks in China for a period of 50 years. Li Ning and AIGLE each own a 50% stake in the joint venture.

According to Chen Weicheng, AIGLE is Li Ning’s second brand and is positioned as a “high-end brand”. At present, all products in 21 AIGLE stores in China are imported, due to the “import tax rate” and “overseas production costs are high. Affected by such factors, AIGLE's current average selling price is far higher than that of the Li-Ning brand. Therefore, the joint venture company decided to make most of the AILGE brand series products localized in China within one year, thus lowering the sales by half. price. Before the end of this year, AILGE will strive to reach 60 stores in China and strive to reach 450 to 500 within three years.