A Comparative Case Study On Marketing Model Of Li-Ning And Anta

Rapid development of China’s economy has brought about exponential growth of domestic sports goods markets,which attracted a number of international sports brands to this market.In the meantime,domestic sports brand manufacturers have also grown fast in both fame and scale.However,they were dwarfed by international brands both in terms of market recognition and market share.This paper adopts Robert K.Yin’s case study method,selecting Li-Ning and Anta as the target cases for analysis.By analyzing marketing differences and its subsequent financial performance differences,the author tries to make recommendations to Chinese domestic sports goods companies.In terms of brand globalization,the paper analyzes brand positioning globalization,brand image globalization,brand marketing channel globalization and brand operation talent globalization.Evidences supporting why Li-Ning has higher gross profit ratio than Anta yet has far lower net profit ratio are found.By STP analysis,the paper finds out that different market segmentation variables were used by the two companies analyzed,which leads to totally different target market selection and brand positioning.This difference brings huge financial losses to Li-Ning while Anta makes above average profit ratio.Lastly,with marketing channel analysis,the paper compares Li-Ning’s ’asset light’operation mode to Anta’s ’vertical integration channel strategy’.Because Li-Ning implements ’asset light’operation mode when the condition is not ripe,it makes Li-Ning’s design and manufacturing seem out of date.While Anta,s vertical integration channel looks clumsy on the outside,it enables Anta to be closer to end customers.This analysis proves why Anta has higher inventory turnover ratio than Li-Ning.Financial analysis finds that Li-Ning performs poorly in terms of profitability,operation and growth indexes compared to Anta.Li-Ning fell from the ’throne’ and Anta took its place becoming China’s No.1 sports brand.Li-Ning’s market value is now less than 1/5 of Anta.This finding coincides with previous marketing analysis findings,and provides financial evidence to the marketing analysis.