Li Ning will invest $10 million in its U.S. business this year to expand U.S. distribution, Li Ning Chief Executive Zhang Zhiyong last week told the Wall Street Journal.

 

The Chinese athletic footwear giant also plans to open warehouses this year to broaden its distribution as well as to hire 20 product developers at its Portland headquarters in coming months to better meet the needs of the U.S. consumer.


The goal is to attain U.S. sales of $50 million this year, according to the report.


Li Ning also hired Acquity, a Chicago-based brand-consulting firm whose clients include General Motors Co. and the American Airlines, to design an advertising and marketing campaign that is expected to roll out in May. The “Make the Change” campaign, scheduled to launch in May with TV, print and online, will be Li Ning's largest yet for the U.S. market.


Li Ning opened a Portland, OR showroom early last year. The brand’s shoes currently are sold in the U.S. at Champs Sports and Eastbay. Li Ning has endorsement deals with Shaquille O'Neal, Evan Turner and Baron Davis.


Li Ning Co. Ltd. also reported that same-store sales growth for its Li-Ning brand stores rose 3.6% in last year's fourth quarter and about 3.9 % for the full fiscal 2010 year. Gross profit and net profit margins for 2010 were broadly in line with levels achieved in 2009, while new store openings fell short of the target set at the beginning of 2010.


In addition, the company predicts that the growth rate of orders in the third and fourth quarters will not be higher than the first two quarters. As of the end of 2010, the total number of Li Ning branded stores had exceeded the company's 7,900 target.