Li Ning heavily please Wade endorsement behind: Change the profit is not easy to shut down the US electric business

Beijing time March 24 Evening News, China's largest sportswear brand Li Ning held a new product launch in Texas in February this year, the famous American basketball star Devon-Wade in a plaid suit, wearing a gold tie at the conference to show that he also helped design the new Li Ning sports shoes, But at the moment, Wade's fans are not able to buy these shoes.





Li Ning's brand was founded by Chinese Olympic gymnast Li Ning, which currently has no storefront in the US and has recently closed its e-commerce section of its US website. At the moment, Li Ning has no clear retail strategy in the United States, and it is a bit confusing for analysts to work with Wade. But industry analysts said that Li Ning's signing with Wade was more of a marketing move aimed at Chinese consumers, whose main aim was not to raise brand awareness in the US market, which currently controls 90% per cent of the market in the U.S. basketball shoe market, Nike and Jordan.




Matt Powell, analyst at
SportsOneSource, said: "Li Ning's move is more aimed at Chinese consumers, who reported ten years ago that Nike and Wade teammate LeBron James (Lebronjames) Signed a 7-year contract for more than 90 million dollars, but now the more famous rookie is asking for a shoe contract of just 1.002 billion dollars. "Li Ning's cooperation with Wade will have a positive impact on the promotion of its brand image, but this does not necessarily improve the sales of Li Ning," said Elysewang, an analyst at Haitong International Data Research Limited. ”





currently has a market capitalisation of about $600 million trillion, and the company will report its earnings next Monday. Analysts predict a net loss of 1.1 billion yuan (177 million U.S.) in 2012, with revenues expected to fall by 16% to 7.5 billion yuan, according to a smartestimate survey by Thomson Reuters. Like other companies, Li Ning opened hundreds of stores in the 2008-year Beijing Olympic Games Halo, but the company had to take a retreat because of sales declines. According to Thomson Reuters, Mr Li Ning's shares are down 86% from the April 2010 peak, while the Hang Seng Index (22115.3,-110.58,-0.50%) has risen 2.3% per cent.





　　Digennaro Communications executive will Degirolamo, a public relations firm, said there would soon be more news about Linningweide cooperation, including Li Ning's launch of a new brand of sneakers in the United States, which will be marketed in the United States early this April. Although Li Ning is not currently selling shoes in the U.S. market, this does not mean that Li Ning missed a golden opportunity, after all, Wade is a big hot star. Rai, chief operating officer of Anta, said in February this year: "NBA stars have a very big impact on the sportswear market in China." "But even Nike, it is not easy to turn a big-name endorsement into a profit," said analyst Matt Powell.