Li Ning's stock took a sharp hit in late 2011, plummeting nearly 16% on December 20 due to declining orders in the second quarter. The company lost HK$3.5 billion in market value in a single day, as major brokers downgraded the brand, triggering institutional selling. Goldman Sachs highlighted two key risks facing Li Ning: brand dilution and challenges in its sales channels.
The year 2011 was a difficult one for the Chinese sportswear giant. While it once stood as a symbol of national pride, the brand has struggled to maintain its dominance against rising local competitors. The "Jinjiang Gang" — led by Anta and Xtep — capitalized on lower prices and strong distribution networks in smaller cities, gradually eroding Li Ning’s market share.
In an attempt to reposition itself, Li Ning pursued a strategy of "brand internationalization with market localization." It invested heavily in design, such as the "Flying Ace" basketball shoes that won the IF China Industrial Design Grand Prix in 2006, and launched high-profile endorsements, including partnerships with foreign Olympic teams. However, these efforts were not enough to fully differentiate the brand from its domestic rivals.
Despite its global ambitions, Li Ning faced challenges in both international and domestic markets. Its international expansion lacked the deep sports assets held by Nike and Adidas, while its domestic channel network was under pressure from aggressive competitors like Anta, which had a strong presence in first-tier cities. This left Li Ning caught in a middle ground — neither fully global nor fully local.
To regain its status as a national treasure, Li Ning must focus on building a stronger brand identity rooted in Chinese culture. Unlike global icons like Nike and Adidas, which are deeply tied to national values, Li Ning has yet to establish a consistent and compelling brand narrative. It needs to invest more in sports philosophy, innovation, and cultural storytelling to reconnect with consumers.
By leveraging its heritage, enhancing product innovation, and strategically targeting high-value sports resources, Li Ning could once again become a symbol of national pride. The path forward requires not just financial strength, but a clear vision and emotional connection with its audience.
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