Anxious LI NING re-establishes partnership with the Chinese Olympic Committee

Author | Wang Xiaojun

Editor | Huang Yu

On January 15, the Shanghai United Assets and Equity Exchange announced that LI NING (China) Sports Goods Co., Ltd. has been selected as the sportswear cooperation partner for the Chinese sports delegation from 2025 to 2028. This means that LI NING will serve as the official sportswear partner for the Chinese Olympic Committee (COC) and the Chinese sports delegation during the period of 2025-2028.

Prior to this, Anta had been a partner of the COC since 2009, holding this position for 15 consecutive years. This 15-year period also marked the time when Anta surpassed LI NING.

For domestic sportswear brands, becoming the clothing cooperation partner of the COC is the best professional endorsement. Throughout the years, partnering with the COC has been a competitive battleground for sports brands. Now, LI NING has officially taken over from Anta, re-establishing its partnership with the COC, which leaves some suspense for the future directions of both companies.

LI NING himself places great importance on this cooperation, having released a long-awaited letter to all employees. Before this partnership, LI NING had also been in a prolonged wait for this position. Since its establishment in 1990, LI NING began its collaboration with the COC, gaining exposure during multiple Olympic Games from 1990 to 2004.

Unlike Anta's grassroots entrepreneurial story, LI NING's entrepreneurial journey has always been more dazzling.

In 1990, the "Prince of Gymnastics," LI NING, who had already won multiple gold medals at several Olympic Games, founded the eponymous sports brand. With this identity, it quickly became a leader in the sportswear market and went public in 2004, becoming the first mainland Chinese sports goods company listed on the Hong Kong stock market.

In the intervening years, although LI NING's performance did not match that of international brands like Nike, it was undoubtedly the number one in the domestic sports footwear and apparel market.

In 2008, LI NING leaped and circled above the Bird's Nest, igniting the main Olympic torch, which elevated the LI NING brand to a new height. At that time, although the official partner of the Chinese Olympic Committee was Adidas, the clothing for the Chinese table tennis team, gymnastics team, diving team, and shooting team—four "dream teams"—was provided by LI NING, which garnered significant attention for the brand.

The following year, LI NING was still at its peak, with domestic sales surpassing Adidas for the first time, second only to Nike, becoming China's second-largest sports brand, but the opportunity to cooperate with the COC was seized by Anta.

After that, the wheel of fate turned between these two companies. In 2012, Anta's total revenue first surpassed LI NING's, and the gap between the two companies continued to widen.

However, LI NING still had many commendable aspects in the years that followed.

In 2018, LI NING participated in New York Fashion Week with its brand "China LI NING," and during that fashion week, LI NING made a splash with bold designs and a unique interpretation of traditional culture, becoming a representative of the new national trend, sports fashion, and street art. That year, the "China LI NING" series of clothing sold over 5.5 million pieces, and shoe sales exceeded 50,000.

This popularity was also directly reflected in its performance. In 2018, LI NING's revenue reached 10.51 billion yuan, an increase of 18.45% year-on-year, with a net profit of 715.3 million yuan, a year-on-year growth of 38.84%. By 2021, with the occurrence of the "Xinjiang cotton" incident, LI NING once again welcomed a moment of glory Within 10 days after the outbreak of the incident, sales at the official flagship store of LI NING increased by more than 200% year-on-year.

Furthermore, in 2022, LI NING's stock price rose to a peak of HKD 106.1 per share, soaring over 3600% in three years, with its market value surpassing HKD 270 billion.

However, after 2022, the trend of national tide faded, and LI NING frequently fell into the perception of users feeling "increasingly expensive." Performance stagnated, and stock prices continued to decline.

Even in last year's big sports year, when all companies should have made a fortune, LI NING did not achieve a remarkable performance. In the first half of 2024, LI NING's revenue was CNY 14.345 billion, a year-on-year increase of 2.33%; net profit was CNY 1.952 billion, a nearly 8% year-on-year decline. In contrast, Anta, Xtep, and 361 Degrees all maintained double-digit growth in revenue and net profit.

The gap with Anta has also widened significantly. Based on the performance in the first half of 2024, Anta's total revenue is 2.4 times that of LI NING, and its net profit is 4.0 times that of LI NING.

From the strategies of both companies, they are also extremely different. LI NING bets on the Chinese tide, targeting young consumers, focusing on the combination of sports and fashion, and deeply developing around the LI NING brand.

Anta, on the other hand, operates multiple lines concurrently, consolidating its main brand to stabilize its basic market, while FILA complements the market of both sports and fashion, and the acquired professional brands continue to capture the domestic middle class. Several brands have even tapped into the Gorpcore trend, riding the wave.

However, LI NING had also acquired the Italian sports brand Lotto and the French brand AIGLE, but these brands ultimately did not become LI NING's "FILA and Descente."

Previously, market news indicated that LI NING obtained the cooperation rights at a price of about CNY 800 million for a four-year period (2025-2028). Although LI NING has not confirmed this price, it is certainly a significant expenditure.

However, looking at the actual situation faced by LI NING and the gap with Anta, it is clear that LI NING needs professional endorsement more. Therefore, even under immense pressure on performance, LI NING still took this step.

Industry insiders believe that although this cooperation may have a short-term impact on LI NING's profits, in the long run, the cooperation is expected to elevate LI NING's exposure to a new level and potentially lead to further growth. LI NING also stated in an internal letter that it will increase investment in sports research and the development of professional products in the future, continuously enhancing its technological application capabilities.

Now, LI NING himself is over sixty years old, and the LI NING brand has been around for 35 years. After experiencing ups and downs, it is time for LI NING to launch another charge.

With the renewed partnership with COC, whether LI NING can stage a "Xifei Returns to the Palace" performance and enter an upward channel remains to be seen in its subsequent performance