Li-Ning: Make the Change
In 2010, Li-Ning launched a new logo and slogan targeting young consumers. It had planned to expand its domestic market advantage by rebranding and lay a foundation for its next step toward globalization, however, the market reaction in 2011 was unsatisfactory: consumers born in the 1970s and 1980s complained of having been forgotten by Li-Ning, and younger consumers born in 1990s didn’t recognize Li-Ning as a professional sports brand with international impact. Meanwhile, the company’s channel partners also expressed their dissatisfaction with the price increases and centralization of the distribution network, leading to a decline in sales orders. Surpassed by Adidas, the company dropped to third place in the Chinese market. Then, its share price dropped from a peak of HK $31 to HK $6, losing 80% of its stock value. What was wrong with Li-Ning? Was brand rebuilding itself the problem? Or was there something wrong in the brand rebuilding process? The case involves how to rebuild brands, and how to implement brand rebuilding.
Published by：China Europe International Business School