Lining Starts Guangxi Supply Base First Factory To Set Foot In Supply Chain Upstream

In the past five years since the return of management, the focus of Lining, founder of the company, has been improving and optimizing the retail operation capacity. In 2018, when Li Ning Co revenues first broke billions of dollars, he began to reform the upstream supply chain of the company.

In May 22nd, Lining group's Guangxi supply base was officially launched, including the development and manufacture of raw materials, sports shoes and sportswear.

This is the first time since the establishment of the company in the past 30 years, it has built factories for the first time to engage in the manufacturing process of the upstream supply chain of sporting goods supply chain.

Its supply chain has long relied on outsourcing.

"The value chain of the whole sporting goods is very long. Before, I tend to make light assets as the brand end. Looking back for many years, we still need to extend the capability to both ends, one is channel retailing, the other is the production of garments and shoes, so that we can find a more efficient and sustainable mode from the production to retail brand management value chain."

Lining said to the prism and other media.

Compared to outsourcing outsourcing, Lining said that although the financial cost will increase, investment is necessary. Besides production space, there is profit margin. It is also hoped to precipitate its core technology into self built factory. "This part of self operation must be what we think is the most valuable, and at the same time, create lots of space for R & D, design and experiment."

However, he did not disclose the investment.

In addition, Lining stressed that the upstream production link will not expand. If all the production comes from self built factories, then the adjustment and flexibility of the retail market will become weaker and it is difficult to catch retail opportunities.

Prior to the 2018 report, Li Ning Co mentioned in the introduction of new business, in the supply chain, the introduction of new business supply base, in the R & D, production and other dimensions of the supply chain system to re comb and create, greatly enhance the quality of shoes products, optimize the production process smoothness.

At present, the progress of Lining's supply chain base in Nanning has been signed. The annual production of 5 million pairs of sports shoes has been signed. The following production lines including clothing, equipment, bags and so on will also be launched.

Lining's goal is that in the future, the Nanning plant will take up the capacity of the group 1/3, and the remaining capacity will continue to seek cooperation from external suppliers.

Choosing a self built factory is not Lining's family, compared with Anta, which has a planning and construction base in Quanzhou, Xiamen, Henan and Shangqiu.

For location in Guangxi Nanning ASEAN open area, Lining explained that, in addition to feedback from home, the geographical location of Nanning ASEAN headquarters can radiate the Southeast Asian market, while Guangxi faces the entire Southern China market and Guangdong, Hongkong and Macau, with convenient logistics and abundant labor force.

Li Ning Co 2018 earnings data show that its domestic Southern China market revenue growth of 36%, accounting for 12%, accounting for only 2.4% of the international market revenue.

Previously, in order to respond quickly to Southern China's retail market, the company set up Southern China district.

Prior to this, the Lining family donated 200 million yuan to set up the Guangxi Lining foundation, funded in Nanning to establish a public welfare Lining Sports Park, after the extraordinary China to operate.

In the Lining plan, the Nanning supply base project is a part of the sports park. It hopes to set up the functions of R & D, design and manufacture of sports equipment, as well as cultural entertainment, education and training, sports events and so on, which is different from the traditional manufacturing enterprises' ecological environment.

Apart from reforming the supply chain, Lining, the Li Ning Co's major shareholder and extraordinary chairman of China, is also responsible for the pformation of the extraordinary China.

Prior to this, under the guidance of Lining nephew Li Qilin, extraordinary China spent hundreds of millions of yuan to acquire the LPL Snake competition club and renamed it LNG.

In the planning of Lining's new business scenario, in addition to the sports community business such as Lining Sports Park, the extraordinary Chinese consumer goods, which are related to health, sports and leisure, are handed over to the extraordinary China, including shoes and clothing, health drinks, food and so on.

Li Ning Co focuses on the sporting goods market.

In this regard, Lining said that the extraordinary Chinese shoes and clothing products will also be built in Nanning's self built factory in the future.