Li-Ning Company Limited
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| Li Ning Company Limited | |
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| Type | Privately owned company |
| Founded | 1990 |
| Headquarters | Beijing, China  |
| Key people | Li Ning, Founder and Chairman |
| Industry | Sportswear and Sports Equipment |
| Products | Athletic shoes, apparel, sports equipment, accessories |
| Revenue | ▲ $418.0 million (FY 2006)[1] |
| Net income | ▲ US$39 million (FY 2006) [2] |
| Website | http://www.lining.com/ |
Li Ning Company Limited, (SEHK: 2331)is a major Chinese supplier of shoe and sports goods, primarily in the People's Republic of China. Li Ning counts Nike and Adidas as its main competitors, and the products of Li Ning Sports Goods continue to be more popular in China than those of foreign competitors. The company endorses a number of athletes and teams, both at home in China and abroad.
In 2005 Li Ning created a joint-venture with French sports apparel company AIGLE which was given the exclusive right 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. [2] The company directly owns some of the retail stores while others are franchised.
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. [3]
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[edit] Product
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, with sales of its sneaker products increasing by 48 percent in 2006. 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. [5]
[edit] Marketing
Li Ning's 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 at home and abroad, to raise its profile [6].
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 Argentian national basketball teams at international events including the 2008 Summer Olympic Games and 2012 Summer Olympic Games. A similar deal was made with the Swedish Olympic Committee. [7]
Since at least 2004, both the men's and women's Spanish National Basketball Team have been equipped by Li-Ning. [4]
[edit] National Basketball Association
Li-Ning is an official marketing partner of the American National Basketball Association and has sponsorship deals with three players: Shaquille O'Neal of the Phoenix Suns, Damon Jones of the Cleveland Cavaliers and Chuck Hayes of the Houston Rockets. [8]
In 2006, O'Neal signed a five-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. [9] 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. [5] [6]
[edit] 2008 Summer Olympic Games
Li-Ning has aggressively sought sponsorship opportunities related to the 2008 Summer Olympic Games being held in Beijing, China. It has arranged to outfit every presenter for broadcaster CCTV-5.[7]
[edit] References
- ^ Press Releases
- ^ Press Releases
- ^ Welcome to Li Ning Company Limited
- ^ [1]
- ^ ESPN - Shaq signs shoe deal with Chinese company Li-Ning - NBA
- ^ Shaq signs with China-based apparel company - NBA - MSNBC.com
- ^ Female Weightlifters, Spanish Basketball Stars, and Kim Jong-il: The strange world of Chinese sneaker endorsements, By Jacob Leibenluft, Slate July 25, 2007
[edit] External links
- [10] Official Web site.
