Homegrown sportswear co. Li Ning may beat Nike on Chinese mainland
According to data recently released by Nike, Nike's revenues on the Chinese mainland reached about 8 billion to 9 billion yuan in 2009, while Chinese sportswear brand Li Ning overtook Nike with total revenue of 8.387 billion yuan.
Nike released data on June 23, announcing that in fiscal year 2010 (As of May 31, 2010) it gained 19 billion U.S. dollars in revenue, of which the Greater China region contributed 1.7 billion dollars, flat on the previous year.
Analysts said that the Chinese mainland accounts for up to 70 percent to 80 percent of Nike's Greater China income, so from December 2008 to November 2009 Nike Chinese mainland revenue totaled between 8 billion to 9 billion yuan. Li Ning, China's local sportswear giant, gained revenues of 8.387 billion yuan in 2009.
Industry insiders point out that if Nike wants to achieve rapid growth in China, it needs to speed up development in the second and third tier market and even county-level markets.