Li Ning Co Is Short, Long And Blind.

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In the virtual market of smart phones and the trading of these products, China is evolving from "world factory" to more western brands and innovations. In the process, outstanding local brands such as millet and Taobao have gained great attention.

Sports brand

Once regarded as one of the most successful brands in China, it seems destined to become a great brand.

Even the smallest city in China has a store of Li Ning Co, and its creators, gymnast Lining, are known as Olympic sports stars in China.

At the opening ceremony of the 2008 Olympic Games, Lining won a priceless global marketing opportunity when he ran the torch at the bird's Nest stadium in Beijing.

With pride and conceit, Lining began to challenge the sporting goods giants such as Nike and Adidas. In the short run, Adidas and German brands were on the same side of the Chinese market.

But retail analysts and brand experts say that since then, the Lining brand has been on the decline for most of the time.

Li Ning Co warned this month that the company suffered losses for third consecutive years.

The company is in

Listed stocks are at a low level in 10 years, and their share price has fallen by more than 90% after reaching the highest point of HK $31.95 per share in 2010.

In Friday's trading, Li Ning Co shares closed at HK $3.18 per share.

What's the problem? Tom Doktorov, head of the Asia Pacific region of JW's advertising company, said: "in the past few years, Li Ning Co has been changing tactics."

He criticized the company for being too reliant on Lining's personal prestige, which is a "strategic opium".

After the Beijing Olympic Games, Li Ning Co abandoned the safety strategy of cost-effective Road, trying to re shape itself into a high-end brand, and prices directly followed those foreign brands.

Retail experts say the result is that both sides are frustrated, and neither side is pleased: older, cost-effective customers shift to cheaper domestic brands, while fashionable young people continue to choose Nike or Adidas.

Torsten Stoker, a retail partner of Greater China in Kearney, said that Chinese consumers are not too active in sports. "As consumers choose between sports and leisure brands, the purchase of sportswear is more motivated by emotion."

He pointed out: "a clear positioning in the market is even more important."

Li Ning Co has predicted that the financial performance of the second half of last year will be improved, with a net loss of 586 million yuan in the first half of last year.

But as the three year change plan, which was launched in July 2012, is drawing to a close, few analysts believe it is really out of the woods.

Storck pointed out: "they now have a better foundation.

But the big question remains: what do they want to build on this foundation?

A former company insider said, "Li Ning Co is such a huge ship that it is not easy to turn around.

I am not optimistic about the future of Li Ning Co, even if I give it another five years. "

Ma Gang, an independent footwear and clothing analyst, said that after years of "management chaos", Li Ning Co might return to profitability, but "it can not return to its state in 2008".

Liang Yuchang, an analyst with UBS in Hongkong, said: "Li Ning Co used to know clearly what kind of people they should be and who they were, and they did what they should do to achieve success.

Once they stop playing to their strengths, this is a big problem. "

He also saw similar warning signals in other Chinese companies, such as the millet company, known for selling cheap smart phones, began to enter the air purifier, and the Alibaba company, which owns Taobao, began to dabble in content development.

Retail analysts warn that the future of Chinese brands as a whole may depend on avoiding duplication of Lining's mistakes.