Li-Ning

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Li-Ning Company Limited
李-宁有限公司
Type Private Limited Company
Industry Sportswear and Sports Equipment
Founded 1990
Headquarters Beijing, China
Area served Worldwide
Key people Li Ning, Founder and Chairman, Nicholas Chong, Chief Financial Officer, Zhang Zhiyong Chief Executive Officer
Products Athletic shoes, apparel, sports equipment, accessories
Revenue Decrease US$1.11 billion (FY 2012)[1]
Net income Decrease US$318.8 million (FY 2012)[1]
Website www.li-ning.com
Li-Ning store in Huaihua, Hunan

Li-Ning Company Limited (Chinese: 李-宁有限公司; Li-Níng Yǒuxiàn Gōngsī) (SEHK2331) is a Chinese company which makes athletic shoes and sporting goods. Li-Ning branded products are targeted for consumers who participate in sports such as running, basketball, badminton, football, tennis and fitness. The company endorses a number of athletes and teams, both at home in China and abroad.

The company was founded in 1990 by Li Ning, a former Chinese Olympic gymnast. As of 2007, Li Ning remains the chairman of the company's board of directors.[2]

In 2005, Li-Ning created a joint-venture with French sports apparel company, AIGLE, giving Li-Ning the exclusive rights to be the distributor of AIGLE's products in China for 50 years.[3]

In 2006, Li-Ning posted revenues of US$418 million, and total profits of about US$39 million. As of March 2007, there were 4,297 Li-Ning retail stores.[4] The company directly owns some of the retail stores while others are franchised.

In January 2010, Li-Ning opened its U.S. headquarters and flagship store in Portland, Oregon.

In 2010, Li-Ning released a new logo and a new slogan as part of the 'Revitalization' of the Sports brand.

The official slogan of the company is "让改变发生" "Ràng Gǎibiàn Fāshēng" in Chinese, translated to "Make The Change" in English.

In January 2011, Li-Ning entered into a partnership with Chicago-based Acquity Group[5] to expand its U.S. distribution and brand awareness.

In April 2012, Li-Ning was awarded the highest distinction of "Outstanding Contribution to Quality Standardization Award" at the 3rd National Textile Standardization Technical Committee - Knitwear division's inaugural meeting held in Zhuhai, Guangdong.

In September 2012, Li-Ning signed into a partnership with NBA player Dwyane Wade.

In 2013, The Group recorded revenue of RMB2,906 million, which represents a decrease of 24.6% year-on-year, due to near-term focus on sell-in reductions, inventory clearance as well as store rationalization[6]

Product[edit]

Li-Ning produces shoes and sportswear, largely for the Chinese market. The company has seen explosive growth in shoe sales in the past several years. Li-Ning's major shoe lines include the "Flying Armor" series of basketball shoes and "Flying Feather" running shoes. According to the company's web site, their hallmark product is the "Li-Ning Bow."[4]

The company also has a smaller sports marketing and branding operation.[7]

In March 2006, The Li-Ning 001 Limited Edition shoe was available. This is the first time a Chinese sports brand made a limited edition sneaker for sale.

Marketing[edit]

Although Li-Ning's logo is very similar to Nike's Swoosh,[8][9][10] its logo design is based on its own initial letters L and N.

The company has aggressively used sponsorship deals, particularly with athletes and sports teams, both in China and abroad, to raise its profile.[11]

In 2006 the company signed "strategic collaborations" with the National Basketball Association, the Association of Tennis Professionals, the China University Basketball Association and the China University Football League. It also signed sponsorship deals with the Chinese national teams and the Sudan track and field team. The company will also provide apparel for the Argentina national basketball team at international events including the 2008 Summer Olympic Games and 2012 Summer Olympic Games. A similar deal was made with the Swedish Olympic Committee.[4]

Since at least 2004, both the Spanish men's and women's national basketball teams have been equipped by Li-Ning.[12]

2008 Beijing Olympics[edit]

Li-Ning aggressively sought sponsorship opportunities related to the 2008 Summer Olympics being held in Beijing, China. The company arranged to outfit every presenter for broadcaster CCTV-5.[13]

In a now famous case of guerilla marketing, when entire countries were tuned into the 2008 Summer Olympics opening ceremony and worldwide millions more saw Li Ning light the torch they also learned that he owns a shoe company with the same name, but is not an official Olympic sponsor.[14] Li-Ning also sponsored several Chinese sporting teams, as well as the Spanish and Swedish Olympics teams.[15] The company's share price also increased by over 3% on the first day of trading after the opening ceremony.[15]

National Basketball Association[edit]

Li-Ning was an official marketing partner of the National Basketball Association and has sponsorship deals with five players: Baron Davis (currently out of the league), Shaquille O'Neal (retired), Damon Jones (currently out of the league), José Calderón of the New York Knicks, and Evan Turner of the Boston Celtics.[4]

In 2006, O'Neal signed a four-year deal with Li-Ning, reportedly worth US$1.25 million, the largest deal made by the company, and the highest profile signing of an American sports star by a Chinese company.[16] O'Neal cited former teammate Damon Jones and the Spanish national basketball team's deal with Li-Ning as influences on his decision to sign with Li-Ning.[17][18]

In 2012 Dwyane Wade left the Jordan Brand for Li-Ning.

Controversy[edit]

Environmental Practices[edit]

In July 2011, Li-Ning - along with other major sportswear and fashion brands including Nike, Adidas and Abercrombie & Fitch - was the subject of a report by the environmental group Greenpeace entitled 'Dirty Laundry'. Li-Ning, along with Abercrombie & Fitch, Adidas, Bauer Hockey, Calvin Klein, Converse, Cortefiel, H&M, Lacoste, Nike, Phillips-Van Heusen Corporation (PVH Corp) and Puma, were accused of working with suppliers in China who, according the findings of the report, contribute to the pollution of the Yangtze and Pearl Rivers.[19] Samples taken from one facility belonging to the Youngor Group located on the Yangtze River Delta and another belonging to the Well Dyeing Factory Ltd. located on a tributary of the Pearl River Delta revealed the presence of hazardous and persistent hormone disruptor chemicals, including alkylphenols, perfluorinated compounds and perfluorooctane sulfonate.

References[edit]

  1. ^ a b "Li Ning Scaling Back After 2012 Loss". Retrieved 24 January 2014. 
  2. ^ "Executive Directors". LI Ning. 2010-06-02. Retrieved 2011-09-15. 
  3. ^ "Welcome to Li-Ning Company Limited". Lining.com. 2011-04-30. Retrieved 2011-09-15. 
  4. ^ a b c d "Press Releases". Lining.com. Retrieved 2011-09-15. 
  5. ^ Burkitt, Laurie (2011-01-19). "Chinese Sports-Apparel Maker Li-Ning Makes Push in the U.S. - WSJ.com". Online.wsj.com. Retrieved 2011-09-15. 
  6. ^ "Li Ning Company Reports Interim Results for 2013". http://www.lining.com/eng/media/press_popup.php?file=inside-3_1_89.html. Retrieved 23 July 2014. 
  7. ^ "Business Overview". Lining.com. Retrieved 2011-09-15. 
  8. ^ Frederik Balfour. "China's Li-Ning Toe-to-Toe Against Nike and Adidas". 
  9. ^ "Watch out Nike: China's sports brands coming on fast". Reuters. February 21, 2008. 
  10. ^ Moore, Malcolm (August 15, 2008). "Li Ning stays one step ahead of rivals in Olympic brand race". The Daily Telegraph (London). Retrieved May 7, 2010. 
  11. ^ Cheng, Allen T. (2002-07-29). "The Mainland's Sneaker King". TIME. Retrieved 2011-09-15. 
  12. ^ http://english.li-ning.com.cn/content.asp?id=60
  13. ^ Leibenluft, Jacob (July 25, 2007). "Female Weightlifters, Spanish Basketball Stars, and Kim Jong-il: The strange world of Chinese sneaker endorsements". Slate. 
  14. ^ August 9, 2008 3:37 PM (2008-08-09). "The Greatest Free Ad Ever : 2008 Summer Olympics blog : Rocky Mountain News". Blogs.rockymountainnews.com. Retrieved 2011-09-15. 
  15. ^ a b Liu, Melinda (August 12, 2008). "Light My Fire: Li Ning's Stock Rises". Newsweek. 
  16. ^ "People's Daily Online - O'Neal the real deal as Li-Ning goes global". English.peopledaily.com.cn. 2006-08-15. Retrieved 2011-09-15. 
  17. ^ "Shaq signs shoe deal with Chinese company Li-Ning - NBA - ESPN". Sports.espn.go.com. 2006-08-15. Retrieved 2011-09-15. 
  18. ^ "Shaq signs with China-based apparel company - NBA- NBC Sports". MSNBC. 2006-08-15. Retrieved 2011-09-15. 
  19. ^ "Dirty Laundry: the toxic secret behind global textile brands". Greenpeace. 

External links[edit]