This presentation discusses the Chinese sporting goods industry and profiles Adidas and Li Ning. It notes that competition is fierce between international brands like Adidas and Nike and Chinese brands. Adidas earns most of its revenue from footwear while pursuing basketball and other sponsorships in China. Li Ning seeks to expand in basketball, tennis, fitness and other areas while growing its retail presence across China. Both companies aim to capitalize on China's growing sports culture and consumer base.

1. Joan López. Strategy Consultant
MBA Full Time 2011
Shenzhen. China. May 2009

2. This presentation is part of a project made for
***Consulting Group. All charts, tables and sentences’
rights are reserved.

4. 1. Introduction to China (C).
2. C Sporting Goods Industry.
3. Adidas. The Present.
4. Li Ning. The Future.

5. Introduction to China (C).
C Sporting Goods Industry.
Adidas. The Present.
Li Ning. The Future.

6. Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
Demographical Info (2009)
Unit
Population billions
1,33
Land area sq Km
9.596.961
Economi Overview (2009)
Inflow of Foreign direct investment $188 b per year.
In 2009 C stood as 2nd largest economy.
Trade and Development.
200m rural labourers have relocated to urban areas.
Government vowed the need to increase domestic
consumption in order to make less dependant of
foreign companies
Introduction. Overview

7. C GDP and PPP
Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
Trade and Development.

8. C Population Distribution
957,6m Potential Customers
Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
Trade and Development.

9. Introduction to China (C).
C Sporting Goods Industry.
Adidas. The Present.
Li Ning. The Future.

10. • The competition in C sporting Goods is fierce.
• Adidas and Nike compete with local C brands
such as Li Ning, Anta and Erke.
• Key Points: Brand Loyalty, Design, Product variety,
quality and price.
C Sporting Goods Industry

11. Market Shares of Sports Brands in C by Revenues, 2009
Li Ning is the third Sporting Brand in C
Own Source

12. Gross Profit of Sports Brands in C, 2009
Own Source

13. Net Profit of Sports Brands in C, 2009
Own Source

14. Adv. expenditures of Sports Brands in C, 2009
624m RMB
Own Source

15. Introduction to China (C).
C Sporting Goods Industry.
Adidas. The Present.
Li Ning. The Future.

17. Adidas Revenue Structure, 2008
Source: Adidas Annual Report 2009

18. Adidas’ Performance in C, 2005-2008
Source: Adidas Annual Report 2009

19. Adidas Net Sales 2004-2008 in million of €.
Source: Adidas Annual Report 2009

20. High jump
Football
Adidas Property. All rights reserved
Adidas Marketing in C, 2008

21. Volleyball
Basketball
Adidas Property. All rights reserved
Adidas Marketing in C, 2008

22. Introduction to China (C).
C Sporting Goods Industry.
Adidas. The Present.
Li Ning. The Future.

24. Mission:
Vision:
Core Values:

26. Li Ning Net Sales 2004-2008 in million of €.
Li Ning Property. All rights reserved

27. Li Ning Operating CF 2005-08 in million of €.
Li Ning Property. All rights reserved

28. Li Ning Gross Profit Margin, 2004-08
Li Ning Property. All rights reserved

31. • Newly signed NBA players: Baron Davis (LA
Clippers), José María Calderón (Toronto Raptors).
• China University Basketball Association (Cuba).
• Nation-wide junior secondary school basketball
events.
• And…
1. Basketball.

33. Li Ning. Advertising
I

34. • OfficialPartner of the Association of Tennis
Professionals (ATP) in China.
• Launched a promotion program during the
Shanghai Tennis Master Cup “Li Ning – ATP
Feel It”.
• Newly signed player: Ivan Ljubicic.
Li Ning. Tennis.

35. • Cooperated with Beijing’s Nirvana Yoga, which
promises the biggest growth potential in the
fitness market in China.
Li Ning. Women Fitness.

36. • November 2008, “Badminton World
Federation Super Series –Li Ning China Open
2008” was held in Shanghai.
• In
the same month, Ms. Wang Chen, the
Group’s sponsored female badminton player,
was crowned the winner of the Hong Kong
Badminton Championship.
Li Ning. Babminton.

37. Li Ning. Advertising II

40. • Lifestyle
change creates immense opportunities for
the sector: Increase per capita income, growing
group of health-conscious consumers and
urbanization.
• Growing popularity of sports tournament and the
broadcasting coverage of major events continues
to expand.
Li Ning C. Initiatives.

41. Ratings/Awarness of Sporting Goods in China, 2008
Li Ning Property. All rights reserved

42. • Improve the monitoring and collection of
operating data intelligence at the retail level.
• Increase store sales growth.
• Broaden presence in second and third tier cities.
• Better distribution service to meet the needs of
local customers.
Li Ning C. Initiatives.

43. Store Expansion Plan in C. Forecasting 2009-2013
Li Ning Property. All rights reserved

44. • SpanishLa Liga: Espanyol C.F. Malaga
C.F.Celta de Vigo C.F.
• SpanishACB League: Caja Laboral,
Baskonia and DKV Joventut.
• Spanish National Basketball Team.
Li Ning Europe. Initiatives.

46. Thank You

47. • More information and projects:
Email: joanlopezgonzalez@yahoo.es
Linkedin Group: Networking Bridge China Spain.
• See this presentation and others:
http://es.linkedin.com/in/joanlopezgonzalez