Jinan Jinniu Canvas specializes in processing various types of tents, such as outdoor camping tents, grassland yurts, emergency tents, security tents, epidemic prevention tents, car garage tents, and charming luxury dome tents. Our factory's weaving equipment is heavy-duty wind and lightning rapier looms such as JF180, equipped with a series of testing instruments and equipment from single yarn incoming to product factory inspection. The product quality fully meets the standards and requirements of the national technical supervision department. Tent,Glamping Luxury Dome Tent,Relief Tent,Custom canvas tent Jinan Golden Bull Canvas Textiles Co.,LTd , https://www.jgbct.com
Li Ning US launches e-commerce accused of “high cost performanceâ€
Li Ning, a leading Chinese sportswear brand, has taken its first step into the U.S. e-commerce market by partnering with a local consulting firm. This move marks a significant shift in the company’s strategy as it looks to expand its presence in the American market more efficiently. Currently, Li Ning operates only one self-owned physical store in the United States, but this new initiative aims to diversify its sales channels and reduce costs associated with traditional retail.
According to CEO Zhang Zhiyong, rising labor and rental costs have prompted the company to reevaluate its retail model. While the company will continue to invest in physical stores, the focus on e-commerce is seen as a more cost-effective approach. The partnership with A Cquity Group LLC involves a $10 million investment aimed at developing an online platform tailored for the U.S. market. This collaboration also includes a major marketing campaign across TV, print, and digital media, which is expected to be Li Ning’s most extensive advertising effort in the region so far.
Li Ning’s decision to work with a local partner stems from the differences in U.S. regulations and payment systems compared to China. A Cquity, based in Chicago, brings expertise in e-commerce, particularly in online and mobile platforms, making them a strategic choice for the brand. Beyond just selling products, Li Ning hopes to connect more closely with American consumers through cultural integration and localized marketing efforts.
Industry analysts have noted that Li Ning’s international expansion appears more calculated than previous strategies. Unlike some domestic brands that rely heavily on expensive ad campaigns, Li Ning is focusing on building a sustainable e-commerce presence. However, not everyone is convinced. Some experts believe the timing may be premature, especially given the competitive landscape of the U.S. market.
With the launch of its U.S. e-commerce platform, Li Ning aims to generate $50 million in revenue. The brand has long been active in overseas markets, having set up offices in the U.S., opened stores in Poland, and acquired Italian brand Lotto. As global giants like Nike and Adidas look to expand in China’s lower-tier cities, Li Ning is leveraging e-commerce as a smart and efficient way to compete.
The brand’s e-commerce journey began earlier, with testing of online sales as early as 2007 to combat counterfeiting. In 2008, Li Ning conducted a survey that revealed over 700 third-party Taobao stores selling its products, with sales reaching 50 million yuan that year. This led to the creation of an official e-commerce department and the launch of "e-Lining," its own online store.
Despite challenges such as price competition between online and offline sales, Li Ning has found ways to balance both. Offering exclusive online styles and targeted promotions helps maintain the value of physical stores. In the U.S., where physical stores are limited, this strategy avoids direct conflict between online and in-store sales.