Wednesday, June 17, 2009

Li Ning


Everything is possible.


One of the best-known Chinese brands across the board in China.

In 2008, the company experienced a 53.8% growth in revenue.
It has 6,000+ stores and generated about $1billion revenue in 2008.


Mr. Li Ning


The namesake is a multiple Olympic gold medal gymnast.
His stardom in China after 1984 Los Angele Olympic is something comparable
to Michael Phelps of 2008 for Americans.

He succeeded in switching careers from a professional athlete to a businessman. Till today, he is the chairman of the company. He forged the transition partly by receiving higher education from the Business College of Peking University. I met him in one class. He looked less energetic as sportsman and more shrewd as a businessman.


Li Ning Co. Ltd


Two years after the 1988 Seoul Olympics, Li Ning exited his sports career and founded the company under his name in Guangdong. He is neither a designer nor a businessman, but he is able to build a household apparel and footwear brand in China. Today it grows to become a multi-brand company, adding accessories and sports equipment under its belt.

I thi
nk its branding achievements can be attributed to not only celebrity marketing (celebrity endorsement can only carry you that far), but also the innovation in its product development, quality and marketing strategies. In a word, it is the whole system behind the brand.

Marketing Highlights


One example of its marketing success is JIONG footwear. Soon after the Chinese character caught on among Chinese online community in the past two years, Li Ning developed and sold shoes with the character and cartoon faces printed on the sides. The word originally means "light". In the contemporary online world, the word carries a new meaning: the state of being depressed or embarrassed, derived from its visual shape, like a face with two dropping eyebrows and a wailing mouth. The mood resonates with so many Internet users, mostly city dwellers who are distressed with their living conditions: a crowded city and a busy lifestyle.

A highlight of its marketing success is encapsulated in the Beijing Olympic torch lighting moment. Li Ning ran or rather flew around the ceiling of the Stadium before inflamed the torch. All eyes on him and his brand name was limelighted with mega-watt power. The company rolled out an integrated promotion compaign with Beijing Olympic. They could increase their visibility without being a sponsor to the game.

A National Brand, and Then ...

46-year-old Li Ning surely can continue his tenure in his company for another decade or so. The company is growing with a tremendous momentum after the Beijing Olympics. It was listed on public stocks. And it established R&D center for product development.

As with any business, the sports gear and wear company must have the world map in mind and not satisfied with its status quo as a brand landlocked in China. But the company is not successfully globalized, so far. International market consists only 0.8% of its total sales. Its website is not consumer-oriented, eyeball-friendly or contemporary looking. Juxtapose it with Nike's website and you see a huge gap in their online presentation. It neglects the now thing, e-commerce, and relies heavily on brick-and-mortar retailing method.

If ever there is a world-renown clothing brand from China, Li Ning might be among the first tier. It establised a design and R&D center in Portland, Oregon, close to Nike's headquarters. Next year, the company will celebrate its 20th anniversary. Still a young company, as many other businesses in the private sectors of China, it takes a lot more to win international consumers who are not enchanted by the name.

An Interview with a Consumer

I just briefly interviewed my husband, one of the first Li Ning brand followers, since his high school age.

Q: Why do you like the brand?
A: It's the best Chinese brand (as opposed to foreign brand). Somehow, (consumers do not usually analyze the mechanics behind marketing), the brand looks superior to other shoe brand, say Doublestar. Well, its design does not look as good as Li Ning, though it has good quality. But since it is no gurantee of quality in China, the look is more important.

Q: Is there any other retired athlete who follows Li Ning's example?
A: Sure. Some. For example, Deng Yaping. But nobody can pull it off as Li Ning does.

Q: Why so?
A: Probably, Li Ning sounds more striking as a brand name than say Deng Yaping.




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