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China sports brand tries to break into US market

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China sports brand tries to break into US market

China sports brand tries to break into US market
BEIJING athletic shoemaker Li-Ning knew it couldn't "out-Nike" Nike, especially in the sporting giant's own backyard. -- its companies are increasingly confident about expansion overseas. But corporate China has yet to produce a brand with the global name recognition of the likes of Apple, Sony or Google.
"It's a process of finding out -- while staying true to our heritage,[link widoczny dla zalogowanych], our brand -- what side of our DNA is going to resonate with the American consumer,[link widoczny dla zalogowanych]," said Jay Li, general manager for Li-Ning International. "We're still searching, to be perfectly honest with you. And we're not in a hurry."
Americans might remember Li Ning (pronounced lee-NING) as the final torchbearer during the opening ceremony of the 2008 Beijing Olympics -- the former gymnastics gold medalist who "ran" along the opening in the stadium roof while suspended by wires,[link widoczny dla zalogowanych].
His namesake company is a top domestic brand in China's lucrative athletic shoe and apparel industry, with more than 7,900 stores across the country. operations this year.
"Our founder Mr. Li Ning has always said his vision was never about building China's Nike, it's about building the world's Li-Ning," Li said. "You can't be global without having a legitimate claim of market share in the most mature sporting goods market."
There are significant hurdles to overcome: Americans are still smarting from the recession and spending less. Chinese goods are widely regarded as shoddily made, knockoffs or even dangerous. it helps them not only sell there but it helps them sell in their home market in China and wherever else they go," said Ben Cavender, associate principal at Shanghai-based China Market Research Group which has studied Li-Ning. staff includes about 30 people, veterans of companies like Nike, Adidas, Converse and Columbia. include equipment and apparel for Asian-dominated sports like pingpong and badminton, niche areas where Li-Ning is an established leader. Its running shoes have debuted in specialty shops, with the aim of attracting avid runners who are concerned more about performance than brand name.
But it's with street culture-influenced basketball shoes that Li-Ning may be able to score its breakthrough. Endorsement deals with NBA players like Shaquille O'Neal, Baron Davis and Evan Turner have so far been key to building awareness among image-conscious consumers.
Li-Ning has a quality product but "we need to bring in the cool factor, the street legitimacy, the street cred. Bring all these elements together and fuse them into the product. customs officials that the new F2 sneaker is a real shoe. ad agency Zambezi,[link widoczny dla zalogowanych], the video has received about 40,000 views since December and is a way of getting some attention with limited resources.
There probably won't be a sequel -- the Portland customs office called to complain about being in the video and Li's office pledged not to revisit the topic again.
For now, Li-Ning's baby steps are showing encouraging results. Cavender pointed out that one industry insider has found some Li-Ning products to be better quality than Adidas products. And the colorful, sometimes cartoon-like designs are turning heads, even if they haven't yet translated into massive sales.
"People are actively asking about it every time they walk in and see it," said Frank Pacifio, manager of a Champs Sports shoe store in Wayne,[link widoczny dla zalogowanych], New Jersey, which sells two to 10 pairs of Li-Nings a week. In that time the store sells 10 to 25 pairs of its most popular shoe, the Nike Air Max 2010.
"A lot of people try the (Li-Ning) shoe on to see how it feels but people are just accustomed to the Nikes, the Jordans," Pacifio said. "People are so used to what they've had, you never want to take the leap to the other side."
"A few brands are attempting it,[link widoczny dla zalogowanych], but no one has come out as a dominant Chinese brand in any industry yet," he said. "I always optimistically look back on the Japanese brands in the '50s and '60s and the Korean brands in the '80s and '90s. It's our turn. We'll get there."
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Post Fri 8 10 26 Jul 2013 
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