Analysis of Li Ning's successful transformation under positioning theory

Abstract

"Li Ning" is a well-known Chinese sporting goods company ("Li Ning Company") The brand had achieved great success in the Chinese market. However, due to increasingly tough international competition and the increasing proportion of the market share of foreign brands in China, Li Ning's business situation between 2012 and 2015 was not promising. Against this backdrop, Li Ning took the initiative to transform the company's brand strategy with a new image and a new slogan and achieved significant results. 2015 saw Li Ning end three consecutive years of losses. After reversing the crisis, Li Ning underwent another comprehensive strategic adjustment, with the brand focusing on rejuvenation and internationalisation. this adjustment had little effect in the short term but achieved the desired results in the long-term adjustment and refinement. in 2022, Li Ning, the leading Chinese professional sports brand, made its debut on the list of top 50 apparel brands released by strategic consulting firm Brand Finance and became Li Ning the fastest growing brand on the list. This paper analyses Li Ning's business strategy using positioning theory in the context of the company's recent financial statements and considers the company's successful transformation. By analysing the reasons for Li Ning's successful transformation, the paper provides a reference for other sports brands and points out the specific role of positioning theory in brand transformation