Amid 'High Rents' And 'Sluggish Economy,' Li-Ning Plans To Overhaul Its Sales Model
Chinese sporting goods brands Li-Ning, 361 Degrees, Anta and Peak Sports are struggling due to "high rents, excess stock, and the sluggish economy" according to WANT CHINA TIMES. Li-Ning chief PR representative Christina Li Wei said, "We believe that a business model which relies on wholesalers is causing a bottleneck. As a result, we are switching to retail-oriented operations." Due to "massive excess inventory" Li-Ning will "overhaul its sales model in the hope of finding a long-term solution." Under a new program, "the company will move to a more flexible, quick-response model better suited to matching real-time demand, offer customers a unified brand experience at its outlets and improve supply chain efficiency, thereby cutting costs and the time it takes to get a product to market" (WANT CHINA TIMES, 2/13).