From refrigerators to running shoes, Chinese brands make headway in the United States

Quick, think of a Chinese brand you can buy on store shelves in the United States or Western Europe. Sure, Tsingdao Beer shows up even in convenience stores, but beyond that... it has historically been difficult to find products that were not only MADE in China, but branded there in well.

 Over the past few years, this has begun to change. IT organizations around the world were unfazed at the transition of the ThinkPad line of laptops from IBM to Lenovo, and US shoppers can find Haier appliances at Sears and Best Buy. And just as the "Made in Japan" moniker on cameras evolved from a knockoff of a major brand to the proud emblazement on Japanese native brands-gone-global like Canon and Nikon, "Made in China" is a phrase whose meaning is in flux.

 For years now, China has led the world in the production of apparel, but the overwhelming majority of those garments carry tags from Western brands from DKNY to Old Navy. Boutique fashion brands like Shanghai Tang have spread to the United States and Europe, but their appeal is limited to those who can shop high fashion, and middle class and value shoppers have seen only "Western" brands on their shelves.

But all that may change as Chinese athletic apparel manufacturer Li-Ning brings its retail stores - and wholesale distribution - to the United States. Athletic wear is no stranger to non-US brands: adidas, Mizuno, Asics... all familiar names from Footlocker to the local running store. But these established brands, along with native powerhouses Nike, Reebok, and New Balance, are about to be joined by Li-Ning, a brand familiar to China through 4700 stores and a 20 year history in China. So why do we think Li-Ning is going to thrive in such a crowded, competitive category?

• Credibility with athletes. Li-Ning's shoes and apparel attract not only high profile athletes like Baron Davis and Shaquille O'Neal, but high profile strategic partnerships as well: in 2004, Li-Ning partnered with the Department of Sports Science and Physical Education at the Chinese University of Hong Kong.
• Subtle style. Ironically, while the most visible difference between most shoe brands is the logo, Li-Ning's style is what sets it apart. The clothes and shoes reflect both an Asian influence and a high-performance Western style, looking clearly different from competitors at both the high and low ends of the category.
• Value price point. Li-Ning's clothes sit in the upper end of the quality and style scale, but are mid-priced, offering shoppers a higher value proposition than competing brands. 

So what challenges will Li-Ning face entering the US?

• Misaligned sports. While high profile players like O'Neal and Davis will help move Li-Ning's basketball shoes, American shoppers are far less familiar with Chinese Olympic champion Lin Dan who endorses Li-Ning's badminton collection, let alone what constitutes "performance table tennis wear." Li-Ning will have to bridge the gap between sports that are popular in Asia (badminton, table tennis and kung fu) and those that resonate with US shoppers.
• Performance versus style. American shoppers buy "performance" gear in categories that they personally don't perform in (buying your kid those Air Jordans doesn't exactly guarantee an NBA slot)... largely for style reasons. It remains to be seen how well Li-Ning will balance remaining credible with true athletes that demand performance with appealing to style conscious masses.
• What sport can I use this for? Li-Ning doesn't know it yet, but in addition to market leading positions in kung fu, badminton and table tennis performance wear, it can be an inadvertent leader in running apparel and travel clothing as well. Li-Ning clothes designed for one sport not only work well for others, they offer a new level of style currently unmatched by entrenched competitors.

Time will tell if Li-Ning is successful, but having launched their first store right in the heart of the Nike-adidas stronghold of Portland, Oregon, they aren't thinking small.

Comments

[Justin Boots]

It is looking good Chinese brand but according to me it is not good to own Chinese brand in electronics because I've very bad experience with it. I know some people will comment that all these items are made from China but I think that standard brand is good to own. Some running brand are looking good and they will also perform good when you buy it but after few days it will not give you performance and you have to threw it out.