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Li Ning, a leading Chinese sportswear brand, is set to open its first retail store outside Asia in the United States this January. The move marks a significant step in the company's strategy to expand globally and establish itself as a top international sports brand within the next ten years. According to the company’s CEO, Zhang Zhiyong, the U.S. market will play a key role in Li Ning’s long-term growth plan, especially during the 2014–2018 period.
The first U.S. store will be located in Portland, Oregon—a city known for its strong sports culture and proximity to the company’s existing R&D center. This strategic location is expected to help streamline supply chain operations and better serve the American market. While Li Ning remains relatively unknown in the U.S., the company sees this as an opportunity to "test the waters" and build brand awareness through localized products and marketing efforts.
The brand, founded by Olympic gymnast Li Ning, has already established a presence in Hong Kong, Singapore, and other parts of Southeast Asia. By the end of this year, it plans to open 70 to 100 specialized badminton stores across the region. In the U.S., the brand will introduce its signature products with "Oriental elements," including a new line inspired by Tai Chi, aiming to differentiate itself from global competitors like Nike and Adidas.
Zhang Zhiyong emphasized that while the company is exploring both organic growth and potential acquisitions, it remains focused on innovation and product development. He acknowledged the risks involved in mergers but also highlighted the benefits of faster expansion. The company is currently dominated by basketball, badminton, and table tennis equipment, but it aims to diversify its offerings in the future.
Despite a high price-to-earnings ratio—22 times projected 2010 earnings—compared to its rivals, Li Ning continues to attract investor interest. Some analysts have rated the stock as “held,†citing concerns over valuation, but Zhang Zhiyong remains confident in the company’s growth trajectory. He expects Li Ning’s brand growth to outperform the overall market, which is projected to expand by 16% in 2010.
With retail sales in mainland China accounting for about 60% of total revenue, the company is also expanding its footprint domestically, competing directly with international brands. Although Li Ning has made significant progress in China, it still faces challenges in building global brand recognition. Going international is seen as a crucial step in achieving its goal of becoming one of the world’s top five sports brands by 2018.
Since the start of the year, Li Ning’s stock has surged over 120%, far outpacing the Hang Seng Index’s 55% gain, reflecting growing confidence in the brand’s future prospects.