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Joan López. Strategy Consultant
      MBA Full Time 2011
  Shenzhen. China. May 2009
This presentation is part of a project made for
***Consulting Group. All charts, tables and sentences’
rights are reserved.
1.    Introduction to China (C).	


2.    C Sporting Goods Industry.	

3.    Adidas. The Present.	


4.    Li Ning. The Future.
Introduction to China (C).	


C Sporting Goods Industry.	


Adidas. The Present.	


Li Ning. The Future.
Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
Demographical Info (2009)	

                 Unit	

Population billions	

                  1,33	

Land area sq Km	

                      9.596.961	


Economi Overview (2009)	

Inflow of Foreign direct investment $188 b per year.	

In 2009 C stood as 2nd largest economy.	





                                                         Trade and Development.	

200m rural labourers have relocated to urban areas.	

Government vowed the need to increase domestic
consumption in order to make less dependant of
foreign companies	



            Introduction. Overview
C GDP and PPP
            	





  Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
  Trade and Development.
C Population Distribution
                                	





957,6m Potential Customers	

                                Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on
                                Trade and Development.
Introduction to China (C).	


C Sporting Goods Industry.	


Adidas. The Present.	


Li Ning. The Future.
• The   competition in C sporting Goods is fierce.	


• Adidas and Nike compete with local C brands
 such as Li Ning, Anta and Erke.	


• Key Points: Brand Loyalty, Design, Product variety,
 quality and price.	




           C Sporting Goods Industry
Market Shares of Sports Brands in C by Revenues, 2009
                                                    	





  Li Ning is the third Sporting Brand in C 	

                                                 Own Source
Gross Profit of Sports Brands in C, 2009
                                      	





                                     Own Source
Net Profit of Sports Brands in C, 2009
                                    	





                                   Own Source
Adv. expenditures of Sports Brands in C, 2009
                                            	


          624m RMB	





                                          Own Source
Introduction to China (C).	


C Sporting Goods Industry.	


Adidas. The Present.	


Li Ning. The Future.
Adidas Revenue Structure, 2008
                             	





                        Source: Adidas Annual Report 2009
Adidas’ Performance in C, 2005-2008
                                  	





                            Source: Adidas Annual Report 2009
Adidas Net Sales 2004-2008 in million of €.
                                          	





                                   Source: Adidas Annual Report 2009
High jump
         	

      Football
                         	





                               Adidas Property. All rights reserved	

Adidas Marketing in C, 2008
Volleyball
           	

   Basketball
                          	





                                Adidas Property. All rights reserved	

Adidas Marketing in C, 2008
Introduction to China (C).	


C Sporting Goods Industry.	


Adidas. The Present.	


Li Ning. The Future.
Mission:

	

Vision:

	

Core Values:
Li Ning Net Sales 2004-2008 in million of €.
                                           	





                                   Li Ning Property. All rights reserved
Li Ning Operating CF 2005-08 in million of €.
                                            	





                                    Li Ning Property. All rights reserved
Li Ning Gross Profit Margin, 2004-08
                                  	





                            Li Ning Property. All rights reserved
 
 
 
 
• Newly signed NBA players: Baron Davis (LA
 Clippers), José María Calderón (Toronto Raptors).	


• China   University Basketball Association (Cuba).	


• Nation-wide    junior secondary school basketball
 events.	


• And…	


                                    1. Basketball.
Li Ning. Advertising 	

                      I
• OfficialPartner of the Association of Tennis
 Professionals (ATP) in China.	


• Launched     a promotion program during the
 Shanghai Tennis Master Cup “Li Ning – ATP
 Feel It”. 	


• Newly     signed player: Ivan Ljubicic.	



                                Li Ning. Tennis.
• Cooperated with Beijing’s Nirvana Yoga, which
 promises the biggest growth potential in the
 fitness market in China.	





          Li Ning. Women Fitness.
• November  2008, “Badminton World
 Federation Super Series –Li Ning China Open
 2008” was held in Shanghai.	


• In
   the same month, Ms. Wang Chen, the
 Group’s sponsored female badminton player,
 was crowned the winner of the Hong Kong
 Badminton Championship.	


                 Li Ning. Babminton.
Li Ning. Advertising II
 
 
• Lifestyle
          change creates immense opportunities for
 the sector: Increase per capita income, growing
 group of health-conscious consumers and
 urbanization.	


• Growing popularity of sports tournament and the
 broadcasting coverage of major events continues
 to expand.	



                 Li Ning C. Initiatives.
Ratings/Awarness of Sporting Goods in China, 2008
                                                	





                                        Li Ning Property. All rights reserved
• Improve the monitoring and collection of
 operating data intelligence at the retail level.	


• Increase   store sales growth.	


• Broaden    presence in second and third tier cities.	


• Better distribution service to meet the needs of
 local customers.	


                      Li Ning C. Initiatives.
Store Expansion Plan in C. Forecasting 2009-2013
                                               	





                                      Li Ning Property. All rights reserved
• SpanishLa Liga: Espanyol C.F. Malaga
 C.F.Celta de Vigo C.F.	


• SpanishACB League: Caja Laboral,
 Baskonia and DKV Joventut.	


• Spanish   National Basketball Team.	



       Li Ning Europe. Initiatives.
Thank You
• More   information and projects:	


Email: joanlopezgonzalez@yahoo.es	


Linkedin Group: Networking Bridge China Spain.	


• See   this presentation and others:	


http://es.linkedin.com/in/joanlopezgonzalez

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China Sporting Goods Industry Battle

  • 1. Joan López. Strategy Consultant MBA Full Time 2011 Shenzhen. China. May 2009
  • 2. This presentation is part of a project made for ***Consulting Group. All charts, tables and sentences’ rights are reserved.
  • 3.
  • 4. 1.  Introduction to China (C). 2.  C Sporting Goods Industry. 3.  Adidas. The Present. 4.  Li Ning. The Future.
  • 5. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  • 6. Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Demographical Info (2009) Unit Population billions 1,33 Land area sq Km 9.596.961 Economi Overview (2009) Inflow of Foreign direct investment $188 b per year. In 2009 C stood as 2nd largest economy. Trade and Development. 200m rural labourers have relocated to urban areas. Government vowed the need to increase domestic consumption in order to make less dependant of foreign companies Introduction. Overview
  • 7. C GDP and PPP Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development.
  • 8. C Population Distribution 957,6m Potential Customers Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development.
  • 9. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  • 10. • The competition in C sporting Goods is fierce. • Adidas and Nike compete with local C brands such as Li Ning, Anta and Erke. • Key Points: Brand Loyalty, Design, Product variety, quality and price. C Sporting Goods Industry
  • 11. Market Shares of Sports Brands in C by Revenues, 2009 Li Ning is the third Sporting Brand in C Own Source
  • 12. Gross Profit of Sports Brands in C, 2009 Own Source
  • 13. Net Profit of Sports Brands in C, 2009 Own Source
  • 14. Adv. expenditures of Sports Brands in C, 2009 624m RMB Own Source
  • 15. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  • 16.
  • 17. Adidas Revenue Structure, 2008 Source: Adidas Annual Report 2009
  • 18. Adidas’ Performance in C, 2005-2008 Source: Adidas Annual Report 2009
  • 19. Adidas Net Sales 2004-2008 in million of €. Source: Adidas Annual Report 2009
  • 20. High jump Football Adidas Property. All rights reserved Adidas Marketing in C, 2008
  • 21. Volleyball Basketball Adidas Property. All rights reserved Adidas Marketing in C, 2008
  • 22. Introduction to China (C). C Sporting Goods Industry. Adidas. The Present. Li Ning. The Future.
  • 23.
  • 25.
  • 26. Li Ning Net Sales 2004-2008 in million of €. Li Ning Property. All rights reserved
  • 27. Li Ning Operating CF 2005-08 in million of €. Li Ning Property. All rights reserved
  • 28. Li Ning Gross Profit Margin, 2004-08 Li Ning Property. All rights reserved
  • 29.
  • 31. • Newly signed NBA players: Baron Davis (LA Clippers), José María Calderón (Toronto Raptors). • China University Basketball Association (Cuba). • Nation-wide junior secondary school basketball events. • And… 1. Basketball.
  • 32.
  • 34. • OfficialPartner of the Association of Tennis Professionals (ATP) in China. • Launched a promotion program during the Shanghai Tennis Master Cup “Li Ning – ATP Feel It”. • Newly signed player: Ivan Ljubicic. Li Ning. Tennis.
  • 35. • Cooperated with Beijing’s Nirvana Yoga, which promises the biggest growth potential in the fitness market in China. Li Ning. Women Fitness.
  • 36. • November 2008, “Badminton World Federation Super Series –Li Ning China Open 2008” was held in Shanghai. • In the same month, Ms. Wang Chen, the Group’s sponsored female badminton player, was crowned the winner of the Hong Kong Badminton Championship. Li Ning. Babminton.
  • 38.
  • 40. • Lifestyle change creates immense opportunities for the sector: Increase per capita income, growing group of health-conscious consumers and urbanization. • Growing popularity of sports tournament and the broadcasting coverage of major events continues to expand. Li Ning C. Initiatives.
  • 41. Ratings/Awarness of Sporting Goods in China, 2008 Li Ning Property. All rights reserved
  • 42. • Improve the monitoring and collection of operating data intelligence at the retail level. • Increase store sales growth. • Broaden presence in second and third tier cities. • Better distribution service to meet the needs of local customers. Li Ning C. Initiatives.
  • 43. Store Expansion Plan in C. Forecasting 2009-2013 Li Ning Property. All rights reserved
  • 44. • SpanishLa Liga: Espanyol C.F. Malaga C.F.Celta de Vigo C.F. • SpanishACB League: Caja Laboral, Baskonia and DKV Joventut. • Spanish National Basketball Team. Li Ning Europe. Initiatives.
  • 45.
  • 47. • More information and projects: Email: joanlopezgonzalez@yahoo.es Linkedin Group: Networking Bridge China Spain. • See this presentation and others: http://es.linkedin.com/in/joanlopezgonzalez