“China’s Nike”? Not exactly. If Li Ning continues on its current trajectory, the similarities will start and end with the swoosh-alike logo.
Named after its gymnast founder, the Beijing-based sports manufacturer/retailer increased revenues by nine times, and earnings-per-share by ten, between 2002 and 2009. By January last year, though, as Li Ning opened its first US store in Portland, Oregon – Nike’s backyard – the flaws in the routine were becoming obvious.
Li Ning had built the biggest sports brand sales network in China, with 7,748 outlets. Just 474 were managed directly, though; 60 per cent of the remainder were run by about 2000 inexperienced retailers who were reluctant to cut prices to shift old inventory, leaving little room for new, higher-priced products. In June, confronting persistently weak order books, Li Ning gave itself a slightly different logo and a new slogan, “Make the change”.