| Type | Publicly traded company |
|---|---|
| Industry | Sportswear and Sports Equipment |
| Founded | 1990 |
| Headquarters | Beijing, China |
| Area served | Worldwide |
| Key people | Li Ning, Founder and Chairman |
| Products | Athletic shoes, apparel, sports equipment, accessories |
| Revenue | US$1.354 billion (FY 2010)[1] |
| Net income | US$220.9 million (FY 2010)[1] |
| Website | www.lining.com |
Li Ning Company Limited (SEHK: 2331) is a major Chinese athletic company which makes athletic shoes and sporting goods. Li-Ning branded products are targeted for consumers who play in sports such as running, basketball, badminton, football, tennis and fitness. Li Ning counts Nike and Adidas as its main 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, giving Li Ning the exclusive rights to be the distributor of AIGLE's products in China for 50 years.[2]
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.[3] 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 January 2011, Li Ning entered into a partnership with Chicago-based Acquity Group[4] to expand its U.S. distribution and brand awareness.
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.[5]
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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, which many attributed to its logo's similarities to that of popular brand, Nike, 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."[3]
The company also has a smaller sports marketing and branding operation.[6]
In March 2006, Li Ning 001 Limited Edition shoe was available. This is the first time a Chinese sports brand made a limited edition sneaker for sale.
Although Li Ning's logo is very similar to Nike's Swoosh,[7][8][9] 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 at home and abroad, to raise its profile.[10]
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.[3]
Since at least 2004, both the Spanish men's and women's national basketball teams have been equipped by Li-Ning.[11]
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.[12]
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.[13] Li-Ning also sponsored several Chinese sporting teams, as well as the Spanish and Swedish Olympics teams.[14] The company's share price also increased by over 3% on the first day of trading after the opening ceremony.[14]
Li-Ning is an official marketing partner of the National Basketball Association and has sponsorship deals with five players: Baron Davis of the Cleveland Cavaliers, Shaquille O'Neal (retired), Damon Jones (currently out of the league), José Calderón of the Toronto Raptors, and Evan Turner of the Philadelphia 76ers[3]
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.[15] 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.[16][17]
Li Ning provides apparel and uniforms for the following athletes and teams:
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In July 2011, Li Ning - along with other major sportswear brands including Nike, Adidas and Abercrombie & Fitch - was the subject of a report by the environmental group Greenpeace entitled 'Dirty Laundry'. Li Ning is accused of working with suppliers in China who, according the findings of the report, contribute to the pollution of the Yangtze and Pearl Rivers. 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.[20]
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