Li Ning Co: CSR Promotes Harmonious Marketing

In March 19, 2009, on the day of the 2008 annual financial report issued by Li Ning Co in Hongkong, another important annual report, the corporate social responsibility report of 2008, was released to express its positive commitment to social responsibility and continuous attention.

It is reported that this is the first time that Li Ning Co has released its corporate social responsibility report, and it is also the first corporate social responsibility report of the domestic sporting goods industry.

Based on the background of the global financial crisis, these two reports, all of which show Lining's determination and strength to "go against the trend".

Li Ning Co reported in its financial report that its turnover in 2008 was 6 billion 690 million yuan.

Since its listing in Hongkong in 2004, Li Ning Co has maintained steady and rapid development, and its performance has been growing at a rate of over 30%.

In 2008, the chance of Olympic marketing was achieved. The growth of performance was 53.8%.

At the same time, its report on corporate social responsibility with Chinese characteristics also expresses the hope that Li Ning Co will promote core competitiveness through CSR (corporate social responsibility).

"Rather ordinary heroes"

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In the report on corporate social responsibility, named "Ningbo ordinary hero" recently released, it is divided into five chapters, namely, gold, wood, water, fire and soil. The content has comprehensively covered the continuous dialogue between Li Ning Co and all interested parties in the past few years, showing Lining's sustained efforts in corporate social responsibility from many aspects such as Lining's financial status, public welfare activities, Olympic achievements, and value chain relations.

Through this report, we can see Lining's outstanding achievements in two aspects in the past few years.

First, it is committed to sports, and has made outstanding achievements in building national brands. Two, Li Ning Co has taken the initiative to undertake social responsibilities after the Li Ning Co has achieved its success. For example, continuing to carry out "one sports" project, emergency rescue for Wenchuan earthquake stricken areas, continuous support for China Health Express and cooperation with the United Nations World Food Programme (WFP), fully embodies a responsible corporate citizenship.

Zhang Xiaoyan, a spokesman for the Li Ning Co, the director of the government and public affairs, said in an interview with reporters: "Li Ning Co has always been committed to the sports industry in return to society as the basis for corporate social responsibility work, and the future direction of development is also based on this core value.

As a leader in China's sporting goods industry, we must make long-term commitment to society.

Only in this way can we fulfill our corporate social responsibility and become an excellent corporate citizen.

Cooperation and win win in crisis

In Li Ning Co's earnings report, Li Ning Co said: "the group is committed to reforming the traditional supply chain mode and creating a demand oriented supply chain management mode.

During the year, the group adopted differentiated logistics distribution models for retail demand and product attributes, integrated logistics resources, improved logistics operation efficiency, effectively reduced logistics costs and shortened storage and pportation time.

In addition, in order to make the supply chain layout more responsive to the market, respond faster to the market and alleviate the pressure of rising costs, the group is inviting core suppliers to set up production bases in Jingmen Industrial Park, Hubei. The group also set up Lining logistics center in the industrial park to develop a production and distribution base integrating clothing, shoes, matching and logistics. "

This referred to as "Lining (Jingmen) Industrial Park" is the company in the annual CSR report "soil chapter" content.

In December 18, 2008, Li Ning Co and its partners and the Jingmen municipal government jointly established the "Lining (Jingmen) Industrial Park" to develop an integrated production and distribution base for clothing, shoes, matching and logistics.

The report pointed out that "win-win cooperation" has always been the basic attitude of Li Ning Co to its partners. The establishment of this Industrial Park reflects the concept of "thick soil symbiosis" and coordinated development between Lining and his partners.

It is understood that Lining (Jingmen) Industrial Park is located in the Jingmen Economic Development Zone, which is jointly invested by Li Ning Co, Hubei Fu Li Shoes Co., Ltd. and Hubei kinetic energy Sports Products Co., Ltd.

Li Ning Co's 7 core suppliers will set up garment group and footwear group respectively, and engage in garment and footwear production in the industrial park. Li Ning Co will invest in the construction of logistics industry park in the industrial park.

After the completion of Lining (Jingmen) Industrial Park, it will become the largest sporting goods production base and logistics distribution center in Central China. The annual output value will be around 5 billion yuan, and the employment of 40 thousand to 50 thousand people will be solved.

It is estimated that by 2011, there will be no less than 50% shoe orders and 30% garment orders in the new production base.

This not only ensures the supplier's order, supports the local development, but also makes the Li Ning Co supply chain more close to the market, and ensures a faster response to the market. At the same time, it can also defuse the pressure of the rise in the cost of the financial crisis. It can be said to create a "three win" situation and pioneer the Chinese sporting goods industry.

CSR is positively related to performance

Paying attention to CSR is a manifestation of maturity.

Industry experts believe that corporate commitment and implementation of social responsibility will also become an integral part of the competitiveness of enterprises.

Only in this way can enterprises truly attach importance to and perform their social responsibilities consistently.

According to a survey report on Chinese enterprises,

86.2% of the respondents will consider social reputation as the criteria for selecting partners and trading partners.

This is more evident in the mature market system.

The corporate social responsibility promotion society of the United States pointed out that the business that balances the interests of all parties and enterprises is 4 times the growth rate of other companies, and the growth rate of employment is 8 times that of other companies.

The survey also found that poor image of professional ethics could make the company's stock fall for at least 6 months.

This also echoes the old saying that "Chinese people are more helpful than those who lose their way".

In fact, the development of Li Ning Co CSR is also positively related to the growth of enterprise brand and performance. The two annual reports that are almost simultaneously launched are the best evidence.

Zhang Xiaoyan said: "we made a questionnaire survey at the recent national dealer conference. When asked whether it would cooperate with companies who were more willing to pay attention to corporate social responsibility, most dealers gave an answer of 4 points (full score of 5 points).

In addition, we play Lining's participation in public welfare activities in the flagship stores of various cities, which play a positive role in improving consumer's brand identity and promoting sales.

Industry experts point out that with the development and progress of society, the public's expectations for corporate social responsibility are increasing rapidly. The public supports and approves that enterprises pursue more economic goals and pursue more social goals.

If the behavior of an enterprise is consistent with that of the public, it will surely win good public praise, establish a good corporate image, win more customers, and create a good and relaxed sales atmosphere for the enterprise. At the same time, from the marketing point of view, the undertaking of social responsibility can directly increase the sales volume and profit of the product.

In fact, as a market main body in a market economy, many social behaviors of a company do not exclude the purpose of direct utilitarianism. Although it is driven by profit motive, it is also a win-win activity. Moreover, by taking on social responsibility, a company obtains a "higher level" image, which not only helps to harmonize the relationship between enterprises and consumers, but also helps to harmonize the relationship between the enterprise and the public, social organizations and government agencies, and is conducive to the public relations activities of enterprises and to obtain more opportunities for development.

Zhang Xiao Yan also said that Li Ning Co is also exploring the process of making products itself, making enterprise brand and doing social brand. Li Ning Co hopes to closely link corporate social responsibility with the cause of sports enterprises, and open a new path for the vigorous development of China's sports industry in the future.