Li Ning, a name that once made Chinese proud, is now experiencing unprecedented difficulties in the market. From 2019 to 2021, Li Ning's market value fell from nearly HK$400 billion to less than HK$170 billion, shrinking by more than half, becoming the "king of decline" among sports brands.
Why did Li Ning come to this point?Is it because of the aging of the brand image, or because of the decline in product quality?Is it because of the rise of competitors, or because of the change of consumers?Is it because of the deterioration of the market environment, or because of the mistake of business strategy?
Li Ning, the name is not only a sports brand for Chinese, but also a symbol of national pride. As a legendary figure in the history of Chinese sports, Li Ning won 6 medals for the Chinese delegation at the 1984 Los Angeles Olympic Games, including 3 gold medals, creating the glory of Chinese gymnastics. At the 1988 Seoul Olympic Games, Li Ning added two more gold medals to the Chinese delegation, becoming one of the greatest athletes in China's Olympic history.
Although Li Ning's athletic career was short, his influence lasted for decades. In 1990, Li Ning started his business path by founding his eponymous brand. With the concept of "changing life with sports", the goal of "the light of domestic products", and the logo of "Li Ning", the Li Ning brand has quickly become one of the most popular sports brands in China. The Li-Ning brand not only provides Chinese consumers with high-quality sports products and services, but also makes great contributions to China's sports and cultural undertakings.
Li Ning brand has sponsored many important sports institutions and venues such as the Chinese Olympic Delegation, the Chinese Sports Delegation, the General Administration of Sports of China, the National Stadium of China, the National Stadium of China, the National Stadium of China, and has also established cooperative relations with many international sports organizations and events such as the International Olympic Committee, the International Athletics Federation, the International Basketball Federation, the International Table Tennis Federation, etc., and has also signed contracts with many Chinese sports stars such as Yao Ming, Liu Xiang, Li Na, Lin Dan, etc., and has become their spokesperson and partner.
The influence of the Li Ning brand is not limited to China, but also extends to the whole world. The Li Ning brand has set up branches and stores in the United States, Europe, Asia, Africa and other countries and regions, and has also established cooperative relations with many internationally renowned sports leagues and clubs such as the NBA, NFL, MLB, etc., and has also signed contracts with many internationally renowned sports stars such as Shaquille O'Neal, David Davis, Evan Turner, etc., and has become their sponsor and partner. The success of the Li Ning brand has made the Chinese feel extremely proud and proud, and also let the people of the world see the strength and charm of China.
The glorious years of the Li Ning brand can be said to have started with the 2008 Beijing Olympic Games. In that year, as the official sponsor of the Chinese Olympic delegation, the Li Ning brand provided professional sports equipment and apparel for Chinese athletes, as well as a wonderful visual enjoyment for the global audience. The highlight of the Li-Ning brand was that at the opening ceremony of the Olympic Games, Li Ning himself, as the last torchbearer, wore the clothing of the Li-Ning brand and lit the Olympic flame along the top of the bird's nest in the posture of a "flying man".
This scene shocked the world and brought the popularity and reputation of the Li Ning brand to its peak. In that year, the sales of the Li Ning brand reached 90400 million yuan, an increase of 54% year-on-year5%, and the net profit reached 6300 million yuan, an increase of 150 percent year-on-year6%, with a market capitalization of nearly HK$40 billion, making it the largest sports brand in China and the fourth largest in the world, behind Nike, Adidas and Reebok.
The glory days of the Li Ning brand did not last long. Since 2009, the Li Ning brand has encountered a series of difficulties and challenges, resulting in the continuous decline of its market share, the continuous shrinking of its market value, the continuous damage of its brand image, and the continuous deterioration of its operating performance.
The decline of the Li Ning brand makes people feel regretful and regretful, but it is not without hope and a way out. The Li Ning brand still has a strong brand foundation and market potential, and as long as it can find the right direction and strategy, it is possible to re-emerge and develop. The way out and hope of the Li Ning brand can be found and realized from the following aspects:
A return to a professional sports brand。The core competitiveness and advantages of the Li Ning brand are the image and positioning of its professional sports brand, which is the foundation of the initial success of the Li Ning brand, and also the ultimate destination and goal of the Li Ning brand. The Li-Ning brand should abandon the brand transformation and market expansion that are not in line with itself, and focus on improving the quality and innovation of its sports products and services to meet the sports needs and expectations of consumers, so as to rebuild its brand reputation and loyalty.
Embrace digital change。Digitalization is an important trend and feature of today's era, as well as an important direction and opportunity for the future. The Li-Ning brand should make use of digital tools and platforms to improve its operational efficiency and market effectiveness, adapt to the changes and needs of consumers, and enhance its competitiveness and influence. The Li-Ning brand should use social networking, e-commerce platforms, live broadcast platforms, etc. to promote its brand and sell its products, and should also use big data, artificial intelligence, cloud computing, etc., to innovate its products and services, so as to create a smarter and more humanized sports brand.
Li Ning, can you still fly again?The answer is yes, as long as you can stick to your original intention and concept, as long as you can grasp your own advantages and opportunities, as long as you can embrace your own changes and innovations, you will be able to fly again, become the pride of Chinese again, and become the admiration of the world again.