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cheapbag214s · Posted: Sun 22:08, 25 Aug 2013 Post subject: China brands catching on

China brands catching on
College student Li Aihua wears his tattered,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], sitting in Guangzhou's chic Shangxiajiu shopping area.
Li, whose given name Aihua means 'love China,[link widoczny dla zalogowanych],' 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,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych]. Retail sales in the country jumped 17 per cent 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,[link widoczny dla zalogowanych], according to Shanghai-based brand strategists ZOU Marketing.
In 2006, Nike controlled roughly 16.7 per cent of China's sportswear market, compared with Adidas's 15.6 per cent, ZOU Marketing says.
Li Ning claimed third place with a 10.5-per-cent slice, and Anta fourth with four per cent, but those figures are climbing as aggressive marketing lifts their brand recognition.
Some foreign investors have seen the writing on the wall. basketball celebrity Shaquille O'Neal in 2006. basketball team the Houston Rockets, and Peak signed a fourth,[link widoczny dla zalogowanych], Shane Battier,[link widoczny dla zalogowanych], 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,[link widoczny dla zalogowanych], some deals have raised eyebrows. Li Ning sponsors Sudan's track and field team,[link widoczny dla zalogowanych], and Hong-xing's Erke logo will grace North Korea's Olympic team in Beijing.
Some analysts warn that margins are too tight in a cutthroat arena dominated by deep-pocketed global brands,[link widoczny dla zalogowanych]. "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,[link widoczny dla zalogowanych],000 shops across China.
"Nikes look cooler but they're more expensive,[link widoczny dla zalogowanych]," said Li Haiming,[link widoczny dla zalogowanych], another South China Agricultural University student. "If you have the money, you'll buy Adidas or Nike."
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