Domestic

China's Li Ning to break into US sportswear market

(Agencies)
Updated: 2011-01-24 17:39

China's homegrown sportswear brand Li Ning is going to expand into the US market using a low-budget edge, The Associated Press (AP) reported.

Related readings:  Li Ning expects business to slow  Li Ning says Q4 store sales growth at 3.6%

The brand, which was founded by former gold medal gymnast Li Ning, now has more than 7,900 stores across China. It is among the first Chinese brands trying to find a footing in the US − a saturated but coveted market.

"It's a process of finding out - while staying true to our heritage, our brand - what side of our DNA is going to resonate with the American consumer," said Jay Li, general manager for Li Ning International, according to the AP report. "We're still searching, to be perfectly honest with you. And we're not in a hurry."

The company launched an English video ad on Youtube and has received about 40,000 views since December.

Li Ning Group Ltd is rebranding itself into an international brand which will refocus itself on youths born after the 1990s. The move may be partly to blame for the decline in the company's 2011 profit expectation. The company said last week that its 2011 gross profit margin will be 1 percent lower than the previous year, and its third- and fourth-quarter order growth will be lower than the first two quarters.