Li Ning Officially Enters the Coffee Business! Ning Coffee Opens 7,000 Stores at Once?!

From Sportswear to Coffee: Li-Ning Enters the Beverage Market

Following China Post, Goubuli, Tongrentang, and PetroChina—companies that seemingly have little connection to coffee—another unexpected brand has joined the coffee industry! Recently, Li-Ning Sports (Shanghai) Co., Ltd. applied to register the "NING COFFEE" trademark, becoming a hot topic. Subsequently, Li-Ning openly acknowledged their coffee venture: they will provide coffee services in their stores to enhance customer comfort and experience during shopping.

That's right—Li-Ning plans to open coffee areas within their own stores. According to Li-Ning's 2021 report data, as of the end of 2021, Li-Ning had 7,137 stores nationwide. If they fully implement this coffee service, it means NING COFFEE could have at least 7,000+ locations, potentially surpassing Luckin Coffee to become the coffee brand with the most stores nationwide if expansion proceeds rapidly.

Does this seem impossible? Never say never. During the pandemic, we've seen increasingly more brands crossing over into coffee sales. These brands already have numerous physical locations, making it relatively easy to start selling coffee—they simply need to add coffee areas to their existing stores.

Strategic Advantages

Compared to renting a separate space for coffee, NING COFFEE operating within existing Li-Ning stores has advantages. With proper training, staff can handle coffee service without needing specialized baristas, significantly reducing labor and rental costs compared to many coffee brands. Consequently, coffee prices can be lower. Additionally, the novelty of brands seemingly unrelated to coffee suddenly entering the market captures consumer curiosity through this cross-industry approach.

Li-Ning's Coffee Journey

Long before the "NING COFFEE" trademark registration, Li-Ning had already begun laying the groundwork for entering the coffee industry. As early as 2013, Li-Ning was "selling coffee"—though not for drinking, but for creating sportswear made from coffee grounds. At that time, Li-Ning used special processes to grind and calcine coffee grounds, then weave them into new material products, creating clothing that was not only environmentally friendly but also antibacterial, odor-resistant, and thermally insulating. In August 2020, Li-Ning also collaborated with AHS Recycle's LOVERE & COSTA to launch limited edition eco-friendly T-shirts,同样使用咖啡渣制作而成。

Last November, at a Li-Ning brand event, consumers could receive free freshly ground coffee with the Li-Ning logo with any on-site purchase. This February, Li-Ning placed a coffee cart featuring the Li-Ning LOGO X CAFE branding in a newly opened Guangdong store, with the coffee machine also displaying the Li-Ning logo. The cart was equipped with camping chairs and camping storage boxes as tables, providing free freshly ground coffee to any customer who made a purchase while creating an outdoor camping-like coffee drinking experience.

After two months of "warm-up," Li-Ning officially registered the "NING COFFEE" logo on April 15th this year. Although still awaiting substantive examination, Li-Ning eagerly opened the first NING COFFEE location.

On April 30th, the first "NING COFFEE" opened inside a Li-Ning flagship store in Xiamen, Fujian. Li-Ning also announced this news on their official Weibo account. With the official launch of "NING COFFEE," netizens showed support for this "national trend" brand. Some netizens stated that as long as the taste isn't particularly bad and the prices are reasonable, they would be willing to support it long-term.

Challenges and Opportunities

Similar to when China Post opened postal coffee shops, NING COFFEE's appearance still faces skepticism. The skepticism largely stems from the brand not being specialized in coffee. Compared to existing domestic coffee brands, NING COFFEE appears unremarkable and will require considerable time to gain consumer acceptance.

Indeed, gaining consumer acceptance will take time, but if "NING COFFEE" achieves comprehensive coverage, its influence cannot be underestimated. Li-Ning stores have extensive nationwide coverage, with locations visible in major cities to small counties. This gives NING COFFEE greater advantages over existing domestic coffee brands in terms of store coverage. Although it may seem distant, in this era, you never know who your next competitor will be.

Strategic Positioning

Li-Ning doesn't necessarily need to make coffee professionally—they just need to provide coffee that satisfies general consumer tastes at acceptable prices. Coffee is merely a side business; the real purpose is to use coffee as a connection to attract more young people's attention to their sports brand while leveraging their extensive store network for diversified operations. From apparel to coffee, Li-Ning hopes to transform their sports brand into a lifestyle brand.

Conclusion

For these cross-industry brands, coffee represents a harmless side business. If successful, it can open up new territories; if it fails, it won't cause significant financial losses. Li-Ning officials have stated that providing coffee services aims to enhance customer comfort and experience during shopping by optimizing in-store services, which proves that Li-Ning coffee isn't specifically targeting the coffee industry.

Rather than worrying about whether these cross-industry brands will take a "piece of the pie" from the coffee industry, it's better to focus on how the current prominent players in the market can survive amid this brand competition—that's what deserves everyone's attention.

Image sources: Xiaohongshu, Weibo, Internet

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