Li Ning is "luring customers to his namesake Li Ning Co. stores, where they can look at and try on the latest range of Xiaoqiang basketball shoes, and Furious Rider and Rouge Rabbit runners -- but not take them home," according to Annie Lee of BLOOMBERG. Instead, buyers "are directed to the Internet to make purchases online." The online-only strategy, which the Beijing-based company said garnered $3.5M in the first month of sales, "may help it reverse three straight years of losses." Companies from home appliance maker Haier Electronics Group Co. to clothing purveyor Grana have also introduced the showroom model. Li sees it "improving inventory management, a complex exercise in China," where there are about 140 cities with more than 1 million people. Market researcher Euromonitor Int'l senior analyst Fangting Sun said, "The showroom approach might be a good way to boost sales in China in the face of rising rental and labor costs, ongoing logistics issues, and the boom in Internet retailing." Haier Chair & CEO Zhou Yunjie said that integrating conventional shops with its online retail business will provide a "better customer experience." Zhou: "Customers need to feel and see the products." Showrooms make that integration possible. Global Brands Group Holding Ltd. CEO Bruce Rockowitz said on Aug. 12, "The future is not a lot of stores. It's going to be a future of showrooms in key places and stores that showcase the brands and build the image" (BLOOMBERG, 9/21).
