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POLL:: Best football kit manufacturer:Sila UNDI:
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Watch out Nike: China's sports brands coming on fast
Thu Feb 21, 2008 6:58am EST
By Joseph Chaney
GUANGZHOU, China, Feb 21 (Reuters) - College student Li Aihua wears his tattered, grungy Li Ning basketball sneakers with pride.
"Li Ning is our Olympic gymnast and his brand is China's most famous so I like to support them," the student at the South China Agricultural University said, sitting in Guangzhou's chic Shangxiajiu shopping area.
Li, whose given name Aihua means 'love China', is among a growing number of young consumers who are buying Chinese sportswear from home-grown brands, such as Li Ning and Anta, as Beijing gears up for this summer's Olympic Games.
Li Ning, the eponymous company founded by the Chinese gymnast who won three gold medals at the 1984 Los Angeles Games, and other sportswear makers such as Anta, China Hongxing Sports, Peak, and Kangwei still lag global giants Nike and Adidas
But they are catching up fast.
"They understand the Chinese market better than international players, and their prices are lower," said Rui Wu, an analyst at JP Morgan. "Li Ning is definitely the market leader because it started earlier than the others."
Analysts say the sportswear sector is a good way for investors to benefit from China's surging consumer boom. Retail sales in the country jumped 17 percent last year to $1.3 trillion as increasingly well-heeled Chinese took an interest in better products and lifestyles.
China's sportswear market is expected to grow to $7.2 billion in 2009 from $3.84 billion in 2006, according to Shanghai-based brand strategists ZOU Marketing.
In 2006, Nike controlled roughly 16.7 percent of China's sportswear market, compared with Adidas' 15.6 percent, ZOU Marketing says.
Li Ning claimed third place with a 10.5 percent slice, and Anta fourth with 4 percent, but those figures are climbing as aggressive marketing lifts their brand recognition.
Some foreign investors have seen the writing on the wall. Houston Rockets owner Les Alexander, who provided a home for basketball superstar Yao Ming -- China's top sports celebrity-- invested $30 million for a stake in Anta, which raised $406 million in its Hong Kong IPO last year.
NEW SWOOSH
Li Ning, whose aerodynamic logo bears an uncanny resemblance to Nike's famous swoosh and whose logo "Anything is possible" echoes Adidas' "Impossible is nothing", is planting a flag in the United States.
In 2006 the company struck a five-year $1.25 million deal with U.S. basketball celebrity Shaquille O'Neal in 2006. It also has sponsorship deals with U.S. National Basketball Association (NBA) stars Damon Jones and Chuck Hayes.
Other Chinese sports brands are striking deals with foreign stars in a bid to break into the global brand consciousness.
Anta sponsors three players for U.S. basketball team the Houston Rockets, and Peak signed a fourth, Shane Battier, to a $4 million endorsement deal.
Chinese brands aren't just looking at the United States. Anta is also trying to sell in the Middle East and South America.
So aggressive is that push, some deals have raised eyebrows. Li Ning sponsors Sudan's track and field team, and Hongxing's Erke logo will grace North Korea's Olympic team in Beijing.
Earlier this month Hollywood director Steven Spielberg quit as an artistic adviser to the Beijing games, saying China was doing too little to help halt bloodshed in Sudan's Darfur region, where Khartoum-linked militia have battled rebel groups.
"For China, ordinary consumers do not really care about these political implications," JP Morgan's Rui Wu said. "They might not even know about Sudan."
SQUARING UP
Some analysts warn that margins are too tight in a cut-throat arena dominated by deep-pocketed global brands. UBS estimates that wages are rising 10-20 percent annually in the clothing industry as labour unions and authorities clamp down on alleged sweatshop conditions and low wages.
"Footwear is one of, if not the most susceptible industry to cost pressures from China," UBS said in a Feb 13 report.
"What we have also observed, however, is that the strongest brands have been able to offset these costs with selective price increases on new products, and that selective improvements along the supply chain are providing some help."
Local sportswear firms, whose products are often churned out in the same factories used by their global rivals, must simultaneously build prestige and also compete on price.
Their sneakers cost on average 200-400 yuan ($30-$56) compared to Nike's 600-1000 yuan.
"We offer value for money products," Anta CFO Paul Ling Shing Ping told Reuters. "We always tell investors we want to be just like Toyota is in the car industry."
Anta runs a network of roughly 4,700 shops, all run by distributors. Li Ning -- whose products are roughly 30 percent pricier than its rivals -- has about 5,000 shops across China.
Not all are sold on Chinese brands -- yet. U.S. sports and U.S. brands continue to thrill. On Feb. 2, between 100 to 200 million Chinese tuned in to watch Yao and Yi Jianlian battle when the Houston Rockets played the Milwaukee Bucks.
"Nikes look cooler but they're more expensive," said Li Haiming, another South China Agricultural University student. "If you have the money, you'll buy Adidas or Nike."
COMPANY ESTIMATED P/E 12-MTH SHARE PERFORMANCE
(AS AT 0710 GMT)
NIKE 17.3 +14.3 pct
ADIDAS 16.2 +14.4 pct
LI NING 52.2 +57.8 pct
ANTA 41.5 n/a
CHINA HONGXING (ERKE) 23.8 +8.5 pct
($1=7.148 Yuan) ($1=.6790 Euro)
(Editing by Edwin Chan and Louise Heavens)
- Reuters -
LI-NING
http://www.li-ning.com
http://english.li-ning.com.cn/
ERKE
http://www.erke.com
http://www.chinahongxing.com.sg/
KANGWEI SPORTS
http://www.kangwei.com.cn/
http://www.kangwei-sports.com/
ANTA SPORTS
http://www.anta.cn
http://www.anta.cn/eng/global/home.htm
PEAK
http://www.chinapeak.com/ |
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nikefit jersi ori mad |
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Reply #61 HangPC2's post
x de satu pun logo dia yg simple & smart mcm nike..  |
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NIKE SUES ADIDAS IN CHINA
Nike have sued Adidas over a Chinese footballer抯 endorsement contract in China.
Football boot brands Nike and Adidas have been in court battling over the contract of Zheng Zhi, the captain of China抯 national football team and Charlton Athletic player.
Zheng Zhi
Zheng Zhi signed for Charlton from Shenzhen Ping抋n on loan initially in December 2006 before making a brief return for Shenzhen Ping抋n and then signing a permanent deal with Charlton in August 2007. In his home country, Zheng Zhi is considered the best Chinese player of his generation, making him a key target for Nike and Adidas to market their products in the country.
The argument between Nike and Adidas revolves around Zheng抯 initial contract with Nike, which Nike feel was violated by the player and an approach from Adidas during the time when Zheng was contracted to Nike was immoral.
Nike Lawyer Fu Qiangguo:
Adidas contacted Zheng immorally though it knew clearly Zheng was sponsored by Nike. Adidas benefited the most from Zheng抯 breach of contract. While Zheng, lured by the good pay Adidas offered, has also harmed Nike抯 interest.
The Nike deal which expired at the end of last year, meant that Zheng would where Nike products whenever possible in public and that he would refrain from wearing other branded products.
Adidas approached Zheng in 2004 to become an ambassador for them, Zheng then asked Nike for an improved deal but it was allegedly refused. In court Nike used evidence to suggest Zheng wore Adidas products in 2005, which violated their agreement. Subsequently, Zheng asked to terminate his agreement with Nike and began promoting Adidas products.
Adidas responded to Nike抯 concerns by stating that Zheng was not paid by Nike on time and that this broke their agreement. They also went on to state that the reason Zheng wore the Adidas products was, because he was at the time, on international duty and the national side is sponsored by Adidas.
The court have not yet reached a verdict on the matter.
Zheng Zhi wears the Adidas Predator Absolute football boots.
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Originally posted by speedmaster at 18-8-2008 07:46 PM 
PUMA............
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Jenama dah tak popular kat Malaysia tapi popular masa tahun 70an dan 80an
Jenama:
GOLA
AGATAS |
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ALIPH....  |
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Reply #69 neo-painkillerz's post
kasut power tak minat ke bang  |
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adidas dan nike paling popular...  |
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aku vote nike tp selalu beli adidas....sbb murah sikit...hehe |
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wa ske cap ayam.... le coq sportif  |
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cheetah ade ke buat jersi? aku sker pakai brand cheetah nih.selesa giler |
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Reply #75 MetalFire's post
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adidas best ... nike smart huhu |
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aku ingat hujung bulan neh nak angkat jersi perancis yg kaler merah kat al-ihsan sport.reger RM75 lebih kurang.walaupown tak cantik sangat.tapi angkat je la...da takde jersi lain yg saiz aku. |
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Post time 13-8-2008 01:06 AM
