Well, the marketing strategy is obviously working... Li-Ning did set a very high price for their badminton products (ridiculously overpriced) in the hope that people would ask themselves "are those products of higher quality?"
If LN is spending heaps to improve the quality of their goods... . When Japan first wanted to improve their "Made in Japan" goods to higher quality (some 50 years ago), they stepped up their 'Quality Control' department. Nowadays, it can be seen that China is also stepping up their 'Quality Control' department too. The cost of goods is usually dependent on the cost of expenditure to produce it. Therefore, if LN is spending heaps to improve the quality of their goods, we should expect their goods to be more expensive. .
When Li Ning started selling badminton racquets, some years ago, they started with higher price then YY. But at the time it was simply Kason racquets. So the Kason racquets jumped in their price because they changed their name, from being called "Kason" to being called "Li Ning". That is pure marketing.
But quite often in the current booming China, whether right or not, the consumers expect and equate higher quality AND higher status statement when they buy something that is priced much higher than average. Quality notwihstanding, whether clothing, watches, fashion, handbags, etc, when they buy something that is expensive, they are saying to their friends and families that they have the status and the means to afford it. They are not concerned about quality or usability, but the fact that the product is a status statement. I think that's what LiNing was hoping to cash in on; but this mentality only works in China, not the rest of the world.
I agree, it only works in China I studied about beer market in China before (I use mintel, it is trusty resources) and it seems people in China associate expensive item = high quality (which is not always the case) maybe they traumatize about many of their cheap products leads to danger (such as exploding chair, small restaurant using water ewage to cook their food, etc) not only that, it seems that what they buy = their status (which is why expensive item is important for them now) beer price in China went up 400% in few years and people still buy it! IMO that strategy will not work in another country
Correct me if I'm wrong. May the reason for Li-ning's better finances than Yonex with respect to badminton gears is that Li-ning puts less cost on its product research and development as well as the quality control and yet puts out high production output coupled with steep pricing. With respect to Yonex, they spend more on their product's r&d as well as quality control that's why they get less profit with their racket sales. Less Expenses = High Profit High Expenses = Low Profit
That Li Ning's badminton division turns in more profit then YY, we don't know, and I personally doubt it. (The figures provided in the first page of this thread are telling Li Ning's overall profit, which include not only badminton gears but also other sports.) Even if Li Ning had the whole China market, it is not much as fake racquets are everywhere in China ; for the rest of the world, who buy their racquets? But of course YY cost of production is higher then Li Ning, not because of R&D or quality control or other fancy stuff, but because their high end racquets are produced in Japan and that is very expensive. Their low end racquets are produced in Taiwan, which have labour cost above the PRC's one.
I think people tend to forget that Chinas economy is HUGE and growing!! And that Yonex recently has not really produced any winning-edge technology. Looking at the pros today it is more rare than common that we see Yonex rackets on top of the podiums, wtich strong players using LNs, Victors, Babolats or even Flypower . LNs seem to have less QC issues, and YY seems to be struggling at the moment.. And of course China is becoming more and more powerful as an economy, and the domestic market for China is huge compared to badminton sales in US, UK, Holland or whatever , So I would think it ins not far fetched to say that if a company "owns" China, it pretty much "owns" the badmintonmarket..
But looking at how small Yonex is I don't think it will have much impact on gaining on the Nike's of this world. Or better/more realistically a PUMA ...
I expressed myself a little clumsy.. What I meant was that the impotance of the badminton-market in China (not the overall size/success), and that it should not be neglected.. I would assume China is the biggest single market for badminton stuff in the world, so I think if you own the badminton-market there, you are pretty much are the one to beat. I just looked at the ongoing Live-chat with Jan O Jörgensen right now, and he wrote: "I think that changing to Li-ning is a huge step up" "their products are really great and its a top professionel brand. Im really happy with the change. The service on tournaments are huge " Does not look like such a shaky sponsorship to me I just hope they can sponsor me as well
Obviously, your biased towards li-ning and against yonex twobeer. As much as you try to post intelligent and objective comment with respect to the issue, you just can't..... Either your'e inclined to blow the trumpets for li-ning, or diss Yonex, or both.
I gess this is OT, as this thread really is about Li-Ning and the sponsorship. Not about overall average product quality between brands.. We are all biased in some way I am afraid. And subjectable to good marketing etc. The only thing we can do is to TRY to be as unbiassed as possbile. And I doubt you are very unbiassed yourself, if you really think about it. From your previously post, you have not even been sure that the YY you have own are even genuine and some clearly seemed fakes based on S/N), and still you make bold general claim the brand has "higher" quality than competitors.. Sorry dude, it doesn't fly
We ought to be thankful that Li-Ning is involved in Badminton sponsorship . About Li-Ning rackets: As a coach, I always tell my trainees; it is not the racket that makes your shots good, it is your stroke/technique. However, different rackets feel different for different players. If a racket feels good for you, then that is the racket for you. About Li-Ning sponsorship We ought to be thankful that Li-Ning is involved in many types of sponsorship for our Badminton. The more the better. .
Could not agree more with that. But focusing on the "hardware" isnt really such a bad thing imhop. It is the same with golf, tennis, cyckling etc. People love to buy expensive golf clubs even though they have a high handicap. It doesnt really make them much, if at all, better, but if they reach a few meters more on their sliced drive, it is all good anyway.. And the sales etc. generate sponsorship, money and a career to the athletes. So as a badminton fan I would encourage people to spend as much money as possible on YY, LN and other high-end producers. But as a Coach/friend I would, just like you, recommend to not focus to much on the equipment, as it tends to maybe take focus away of more aspects of the training, technique, skill etc. involved in the game.
point taken twobeer. Thanks for enlightening me. I may have not been totally unbiased myself but i am not obviously favoring either of the two brands. If you would check the rackets i've owned, i have used several brands including li-ning, victor and yonex. And its obvious that i've made my preference for yonex and its for a reason. i have nothing against the performance of my li-ning racket. My problem is its restrictive price. Its too steep compared to the price of victor or even yonex without offering a new or better technology than the other brands. I could claim that Yonex is the pioneer and frontline with respect to racket development because their nanotechnology has been the basis for a lot of technology employed by other racket brands. And that's what customers buy from them.. Li-ning should offer more in order to justify their steep price not only because they sponsor more players. Buyers buy the rackets not the athletes who sponsor them. PEACE P.S. And as to my previous post that you have read, the racket is fake and i have learned my lesson....
Li-Ning sportswear looks to win overseas "13 March 2011 ... 'More attractive' Under the terms of the new project, due to start in 2012, the Finish group will concentrate on wholesale distribution in nine countries - Germany, Austria, Sweden, France, Slovenia, Croatia, Finland, the Netherlands and Russia. The Finnish firm will take responsibility for sales, marketing and design of the Li-Ning clothing items in the nine countries. ..." http://www.bbc.co.uk/news/business-12665597
I think one thing Li-Ning has to do to get western buyers is to put pressure on the Chinese Badminton Team to stop being so annoying, in terms of walk-overs and also just not being very friendly. The face of Li Ning in badminton is the Chinese Team and by what I have read on this forum, they aren't the most popular bunch.
Not sure about the UK but i hear Li Ning is going to have a demo day coming up in the USA West Coast. Hopefully in the Bay Area.
Nah, we get nothing like that in the UK. It's pretty bad really, the only time we get massive racquet testing times is if we get a smaller supplier to come and bring some down to a club session. I've been to two, Forza and Apacs, Li-Ning really need to sponsor a Badminton Bonanza in the UK and have a court to just test their racquets, or get some county coaches on board.
