Li Ning is focused on cleaning up its inventory and Gome on boosting its online presence.
Li Ning also faces tough competition from Nike at the higher end of the China market.
Struggling sportwear retailer Li Ning yesterday announced that its CEO had quit (see link here).
The Li Ning Dunkman shoe includes more high-tech materials than the U.S. model, justifying the steeper price.
Li Ning, a Chinese athletic apparel company, also experienced challenges in its first attempt to expand internationally.
Li Ning was undoubtedly one of the top Chinese brands domestically, and it too had global aspirations.
E-commerce will enable Digital Li Ning to shape American consumers' perception of the brand throughout the entire buying process.
People have a strong affinity to purchase familiar brands they identify with, and Li Ning was not one of them.
However, Wade recently dropped Nike as a sponsor to sign with a Chinese athletic apparel company, Li Ning.
Hong Kong-traded shares in money-losing Li Ning, founded by the Chinese Olympian, have lost about 15% in the past year.
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Unlike its first foray into the US market, Digital Li Ning is solely an e-commerce store without any physical retail outlets.
Li Ning was founded by a former Chinese gymnast who won six medals at the 1984 Olympic Games in Los Angeles.
In footwear related news today, Li Ning warned investors of a likely plunge in profit this year (see related story here).
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Li Ning shut a net 1, 821 stores and factory outlets last year, leaving 6, 434 still in business, the company said in a statement.
While many people have likely never heard of him, Li Ning, the company's founder, is one of the most famous athletes in China.
The most recent example is sporting-goods company Li Ning Co.
Unlike Jianlibao, Li Ning has had a second chance to build a business overseas - it recently went digital in a joint-venture with Chicago-based Acquity Group.
Li Ning has been facing a number of headwinds that includes growing competition from domestic rivals, such as Anta and Peak, as well as shrinking profit margins.
Ironically Li Ning has been one of the leaders in selling cheap basketball shoes in China, but it now is using Shaq to graduate to selling high-end shoes.
In the wake of the 2008 Olympics, these brands saw a surge in sales, with revenue at Li Ning and rival Anta, which sells Fila clothes and shoes, rising over 50%.
Last week, following a profit warning, Li Ning said it is replacing its chief executive of 20 years with the founder, and investor TPG Group is stepping in to overhaul operations.
From heights of 60 times earnings, Li Ning is now trading at 23 times and is down 28% this year, while Anta, valued at 33 times, is down to nine times.
Li Ning, the sportswear company named after the Chinese Olympic star whose shares have been hammered recently amid tough competition, lost another 10% yesterday after it posted its 2010 financial report yesterday.
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Heisner went on to explain that "Li Ning did not promote this fact, and then went right into a fiercely competitive overseas market going directly against the likes of Nike and Adidas".
Li Ning last week said it wants to move to a more consumer-oriented model, opening more of its own shops and factory outlets rather than franchising them out to third parties or relying on wholesalers to distribute their products.
Few in that country can forget the impressive sight of Li Ning, himself in a track suit of his own design, being hoisted up at the Bird Nest stadium to light the torch during the opening ceremony of the 2008 Beijing Olympic Games.
When asked why this initial investment in the US failed, Craig Heisner, vice-president of digital operations, explains: "I don't think the original plan adequately presented the heritage of Li Ning as a major Chinese brand founded by a famous Olympian who rose to the top".
It seems Li-Ning needs Wade a lot more than the player needs the company.
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Here are some pros and cons to leaving the Nike powerhouse for the Chinese-based Li-Ning brand.
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