Li Ning recently announced at its latest order meeting that, based on wholesale shipment calculations, the order volume for its products in Q2 2011 dropped by about 6% compared to the same period in 2010. The news sent shockwaves through the market, triggering a massive sell-off. Shares of Li Ning plummeted nearly 16% in one day—the biggest single-day drop since the company's listing in 2004. Its market value fell by over 3.5 billion yuan in just a few hours.
The decline came as the brand faced growing pressure from both domestic and international competitors. Once seen as a high-end Chinese sports brand, Li Ning found itself struggling to maintain relevance against global giants like Nike and Adidas. Analysts pointed out that the company’s recent rebranding efforts had backfired, leading to confusion among consumers.
At the end of 2010, Li Ning launched a new logo called “Li Ning Intersection†and replaced its long-standing slogan “Everything is Possible†with “Made the Change.†The brand aimed to appeal to the younger generation, particularly the post-90s demographic, but it failed to resonate with them. Instead, young consumers continued to favor foreign brands such as Nike and Adidas, while Apple remained their top choice for digital products.
According to CCB International analyst Chen Zhaochang, Li Ning’s poor performance in the second quarter was not reflective of the entire sports goods industry. While Li Ning saw a 6% decline, another major domestic brand, Hongxing Erke, reported a 24.9% year-on-year increase in orders during the same period.
Industry insiders believe the sales crisis stemmed from the brand’s strategic shift after the 2010 rebranding. By targeting the younger generation, Li Ning alienated its traditional customer base—those who had once been the backbone of its success. Now, the brand is trying to regain its footing, with plans to reintroduce its old logo in the coming years to attract nostalgic customers.
Despite these efforts, many remain skeptical about Li Ning’s ability to recover. The company faces a tough road ahead as it tries to redefine its identity in an increasingly competitive market.
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