Li-Ning, a prominent Chinese sportswear brand, has recently reported a decrease in net profit for the first half of fiscal 2025. Despite a 3% increase in sales, the net profit fell by 11% year-on-year to RMB 1.74 billion ($241.9 million). This decline has been attributed to macroeconomic pressures and intensified competition in the market, particularly due to the softening of Chinese consumer spending since 2024.
Founder, executive chair, and co-CEO, Mr. Ning, has acknowledged the challenges faced by the brand and emphasized the importance of Olympics-adjacent marketing as a key strategy to navigate through the headwinds and enhance brand competitiveness in China. In response to the market conditions, Li-Ning has implemented various measures to address the situation, including refining product architecture, focusing on core categories, improving inventory management, and investing in brand and innovation.
One of the strategies adopted by Li-Ning is to leverage the guochao (or “China chic”) movement, which celebrates Chinese heritage and encourages consumers to support domestic brands. The brand aims to showcase the fusion of Chinese sport and design on a global platform by using a modern, style-led design language to convey the essence of Chinese athletic spirit and sports glory.
To further enhance its brand visibility and relevance, Li-Ning is collaborating with Chinese and European Key Opinion Leaders (KOLs) for a front-row presence at events. This initiative is aimed at amplifying the brand’s presence across various social media platforms, including Instagram and Xiaohongshu (Red), to reach a wider audience.
Despite the challenges faced in the market, Li-Ning remains optimistic about its long-term vision, focusing on strengthening brand perception rather than short-term volume growth. The brand is committed to building resonance through product development and heritage storytelling in 2026.
It is worth noting that Li-Ning generates a significant portion of its revenue from offline sales in Mainland China, with a majority coming from wholesale channels. In response to market dynamics, the brand is reevaluating its retail strategy by closing some self-operated stores while opening new ones to adapt to changing consumer preferences and market conditions.
Overall, Li-Ning’s proactive approach towards addressing market challenges and its emphasis on brand building and innovation reflect its commitment to maintaining a strong presence in the competitive sportswear industry.
