Chinese Sportswear Brands Gain Ground On Global Competitors

Li Ning Using O'Neal (r) Endorsement To Expand Into Int'l Markets

A “growing number of young consumers” in China are buying sportswear from home-grown brands, according to Joseph Chaney of REUTERS. Chinese brands including Li Ning, Anta, China Hongxing Sports, Peak and Kangwei “still lag global giants Nike and Adidas,” but they are "catching up fast." JP Morgan analyst Rui Wu: "They understand the Chinese market better than international players, and their prices are lower." Chaney notes Chinese companies' shoes on average cost between US$30-56 compared to Nike's US$90-150. Anta CFO Paul Ling Shing Ping: "We offer value for money products.” According to Shanghai-based ZOU Marketing, China's sportswear market is expected to grow to US$7.2B in ‘09 from US$3.84B in ’06. The firm said that in ’06 Nike controlled roughly 16.7% of the country's sportswear market, compared to adidas' 15.6%. Li Ning came in third at 10.5% and Anta claimed 4% of the market and those figures are "climbing as aggressive marketing lifts their brand recognition." The Chinese companies also are expanding into int'l markets including the U.S., where Li Ning has sponsorship deals with Suns C Shaquille O'Neal, Cavaliers G Damon Jones and Rockets F Chuck Hayes. Peak signed Rockets F Shane Battier, and Anta sponsors Rockets F Bonzi Wells, F Luis Scola and G Steve Francis. Anta also is "trying to sell in the Middle East and South America," Li Ning sponsors Sudan's track and field team and Hongxing's Erke logo will "grace North Korea's Olympic team in Beijing" (REUTERS, 2/21).