Loss-making Chinese sportswear brand Li Ning is "making a maiden foray into wearable technology," linking up with a Xiaomi-backed start-up in an effort to "revive its flagging fortunes," according to Patti Waldmeir of the FINANCIAL TIMES. The sportswear company said on Monday that it had "signed a strategic partnership with Huami Technology, which produces Xiaomi’s 'Mi' smart wristband." The companies said the move was the "first collaboration between sportswear and smart technology in China, and also Li Ning’s first foray into the smart sports sector." Retail analysts said that the announcement was "well timed," coming a week after Apple's unveiling of its new smart watch. Li Ning "may also be hoping" that some of the popularity of Xiaomi -- a rapidly growing maker of smartphones and other gadgets -- can "rub off on the troubled sportswear group." Beijing's Adfaith Consulting Retail Analyst Yan Qiang said, "It's good for Li Ning to give the impression that it is working on innovation with one of the most innovative Chinese brands. It will help to overturn Li Ning’s brand image that it is too rigid to be cool." Analysts said that Li Ning’s partnership with Huami "was part of its strategy to relaunch as a premium brand -- but at more affordable prices than western competitors" such as adidas and Nike (FT, 3/16).
