Novelty holds key for local brands abroad
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To build their image in Europe, Media ran dozens of brand promotion campaigns, including stadium billboard ads in the Italian football league.
Strategy No.3, the Li-Ning model, currently looks the most promising. It is a fully brand-oriented model, seeing overseas expansion as brand expansion, putting brand-building before product promotion. Other brands like Haier and Lenovo have adopted this model, but Li-Ning is a standout example of going abroad without compromising on "Chineseness."
In 1999, Li-Ning did the first tests of its global strategy. After the Asian financial crisis, its sales in the Chinese market had dropped steeply. Li Ning, founder of the company, had an inspiration. A famous gymnast who often took part in races abroad, he decided to walk off the predicament by going global. The company built a flagship store in Spain, employed an international team to film an ad beside the river Seine, took part in a sports goods exhibition in Munich, and threw money and manpower at overseas marketing campaigns.
This headlong dash to go global soon generated problems: Li-Ning's performance in the domestic market began to slide. In 2003, it lost the No.1 position in the China market to Nike, and was overtaken by Adidas in 2004.
This was a critical moment in Li-Ning's internationalization. The company's leaders now had a deeper understanding of going global: If you can't beat rivals in your own market, you won't beat them overseas either. Under pressure, it decided to say no to the typical roadmap for going abroad -Westernized slogans, speaking English, making overseas acquisitions. Instead it decided to use Chinese elements in its ads and products to push its identity.
More importantly, it realized that the rise of big global brands is often linked to the rise of their home nation. Adidas reportedly spent $80 million to sponsor the 2008 Beijing Olympic Games.
So when Li Ning stepped up to light the Olympic torch at the opening ceremony, it was not only a huge honor for Li Ning personally but also a massive blow for Adidas.
Li Ning's presence at the opening ceremony was a metaphor for the youth and power of the Middle Kingdom and, by extension, the Li-Ning brand. It was a very big moment.
Staying rational and staying Chinese are the two golden rules for Chinese companies looking to develop their brands overseas. Chinese entrepreneurs are becoming smarter and more mature in dealing with the international market.
Trailblazer Li-Ning is the act to follow.
The author is a reporter with the Global Times. chenchenchen@globaltimes.com.cn
