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And when many Chinese textile and footwear exporters adopted a low-price policy, Li Ning declined to follow suit. The company insisted on pricing its products at 75 to 80 percent of the big international names.

"We would make more profit if they were sold at lower prices, but we must take a strategic view," he said.

In 2006, Li Ning launched a series of ads combining oriental elements with modern sports to promote several key models of sneakers. One featured a man shadow-boxing with a basketball, while in another, youth ran through a Chinese painting.

"We had long debates (on whether to add the oriental elements) because we know they're not favored by young Chinese consumers now," he said.

But finally management decided to go with the oriental approach because the "strategic view" told them China's rise would make traditional Chinese culture popular.

The company, which was founded by Li Ning, a well-known Chinese gymnastics champion, is currently the No1 sports footwear, accessories and apparel seller in China's second- and third-tier cities, beating foreign giants such as Nike by holding about 20 percent market share.

In China's first-tier cities, Li Ning has market share of about 8 to 9 percent, 1 percent lower than Nike. The company expects to claim higher share in the metropolises, including Beijing and Shanghai, in 2009.

(China Daily 03/27/2007 page15) 

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