Li-ning or Nike?

In today's New York Times, columnist Joe Nocera notes that China has quickly mastered the intricacies of a market economy and cheap manufacturing, but its new-found enthusiam for brands hasn't yet translated into the ability to create them. The Li-Ning sneaker is the eponymous brainchild of a famous Chinese gymnast, but its modified checkmark logo says "Nike." Its English-language slogan, "Anything is Possible," sounds an awful lot like adidas' "Nothing is Impossible." And while Li-Ning has snagged endorsements from Western sports figures including Shaquille O'Neal, the Shaq figure stamped on some styles apparently bears strong resemblance to the Nike Air Jordan silhouette.

Like other domestic Chinese brands, Li-Ning would like to achieve a bit more respect (translation: higher price points) at home, and a share of the Western market as well. But before Li-Ning secures shelf space in your local Foot Locker, Nocera argues, it will have to learn a bit more about the art of branding. Not to mention trademark law.

This Article from Counterfeit Chic is really interesting and a good way of showing the foreign perspective of Li-Ning. But it seems to me that they are missing on something that is quite crucial. Not only do Chinese people not consider Li-Ning to be a rip-off of Nike (although they will admit it looks pretty similar if pressed), but more importantly it's huge in China. More people have Li-Ning products than Nike. They may get one Nike product, but have several of Li-Nings. While Li-Ning has some luxury value, it's nothing close to Nike's. So while Li-Ning may want to take the luxury or more expensive approach I would argue that they stick with the way they are going and try to become more similar to Nike or Adidas in America. A top athletic brand, but not a luxury or super exclusive brand. Doing that Li-Ning can keep higher prices but still have the mass consumer base as well as being able to take advantage of being homegrown.