Li Ning Sports Goods Beat Foreign Brands on Chinese Mainland

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Last updated at: (Beijing Time) Tuesday, August 06, 2002

Li Ning Sports Goods Beat Foreign Brands on Chinese Mainland

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When Li Ning, China's "Prince of Gymnastics" retired from competitive sports in 1988 and joined the business world, he set off his journey to building a household name for sports products that outdo foreign brands in China.

According to the Hong Kong Trade Development Council (TDC), which provides business and trade information to Hong Kong's business people, the Li Ning Group, founded by Li, who won a totalof 106 medals, including six golds, is the most successful home-grown sporting goods enterprise in China with 600,000 stores-within-stores and over 2,000 sales outlets in 90 percent of mainland cities.

The latest edition of US-published China Economic Review quotedthe remarks by Guy Horne, the director of sports rights at IEC in Sports - a Swedish-based sports public relations business that endeavors to identify commercial values connected to television and sporting events.

Horne said Li Ning is now the top sports brand on China's mainland, which sells 50 percent more in revenue terms than Nike, which is the number two, with Adidas, a close third and other brands far behind.

Nene Leung, founder of Champion Projects sports consultancy, said Li Ning is perceived by Chinese consumers as a down-to-earth,value-for-money brand, with the likes of Nike and Adidas being regarded as premium designer labels.

"The market landscape is polarized between Li Ning as the volume leader, while Nike and Adidas are the value leaders," he said.

Horne added that when Nike retails its footwear at 80 to 150 USdollars, Li sells similar products at 32 dollars.

The Li Ning group, established in 1990, has now developed a large number of lines, supplying casual wear, shoes, leather goods,neckties and gifts as well.

Li's success has also encouraged a number of former and currentChinese sports stars, who followed suit in setting up their own brands. Table tennis players such as Deng Yaping, Kong Linghui andLiu Guoliang are some of the examples.

According to the TDC, while one Li Ning product is now "sold every 10 seconds, the group is netting billions of yuan in annual turnover."

Commenting on sports consumption on the Chinese mainland, the 2002 Sport Business Group report entitled "China: Opportunities inthe Business of Sport", remarked that China is starting to shift towards a more consumer-oriented society.

"Sports consumption is growing too as the younger affluent and professional groups demand more recognized brands and more sports entertainment," he said.

The report pointed out that such consumption will also provide favorable condition and a driving force for the successful hosting,management and commercial support of sports events to be staged inChina.

"Recent events suggested indicators. The 2001 World University Games in Beijing were applauded as the 'best ever', and the 9th National Games in Guangdong that year were the most successful in this event for sponsorship, advertising and brand exposure.

"By the end of 2002, the strategic direction and plans for a long haul to the 2008 Olympic Games will have been shaped," it predicted.

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