Question

Do small rivals like China’s Li-Ning pose a serious threat to Nike? Could private-label athletic shoes challenge Nike, especially in poor economic times?

Answer 1

Overtake no, impact on market share, yes. Given China’s currently booming economy and recent government reforms to support sport-related industries. Nike's endorsements, outsourced cost reduction, and supply chain give them a competitive advantage over Li-Nang and other private labels, however, with NBA athlete Dwayne Wade, Li-Ning began their endorsement introductions to the U.S. consumer-related markets. Rapidly growing business to consumer e-commerce in China will continue to create intense competition within the industry, given the current economy and certainly within an unfortunate economic situation. Founded and owned by former Olympic gymnast Li-Ning, and given the boost from the recent 2016 Olympics, Li-Ning will continue to apply investments into technology, Infrastructure, and culture that will keep creating a market share rival for Nike. As Ni-Ling and other private labels, increase their efforts and strategies, Nike will continue to face a threat from competition.