WORLD / Wall Street Journal Exclusive
Chinese firm drafts NBA's Shaq
By GEOFFREY A. FOWLER and MEI FONG (WSJ)
Updated: 2006-08-15 13:10
http://online.wsj.com/public/article/SB115556538052735022-M4CsYlBNasLfLViiP
lZSOomnh3M_20060821.html?mod=regionallinks
Shaquille O'Neal has a new shoe deal -- in mainland China, where
basketball's growing popularity has turned the country into the next
battleground in the global sneaker wars.
The National Basketball Association star announced the deal yesterday
with Chinese sportswear brand Li Ning, which turned the story of a 1980s
Olympic gymnastics hero of the same name into one of the country's
best-known domestic brands.
The five-year contract gives Li Ning the right to produce and market a
"Li Ning Shaq" line of professional basketball shoes and apparel only in
China. The company declined to disclose the terms of the deal.
In the fast-growing business of marketing to China's young urbanites, the
deal is important for both sides. To Li Ning, Mr. O'Neal offers a boost
of international and street-level credibility. The company in recent
years has fallen to third place in the domestic market behind Nike and
Adidas.
To Mr. O'Neal, of the Miami Heat, who is one of the NBA's top earners but
who has failed to ignite sales for his own brand of shoes, the deal
offers access to a thriving market. In the U.S., Mr. O'Neal pitches
"Dunkman Game Shoes" for Payless ShoeSource. They sell for a relatively
low price of $39.99, which Mr. O'Neal has said he selected to help kids
whose parents don't make much money.
Mr. O'Neal chose to lend his name to Li Ning products because "Li Ning is
one of the best Chinese brands," he said.
The company's marketing director, Abel Wu, said the venture with Mr.
O'Neal would "absolutely help us build the Li Ning brand."
Last winter, Li Ning hired the Cleveland Cavaliers' Damon Jones to star
in commercials and wear its shoes during NBA games. Earlier this month,
Nike superstar LeBron James visited China. And Reebok, which is owned by
Adidas, is endorsed by Chinese NBA star Yao Ming of the Houston Rockets.
Nike says it has annual sales in China of about $600 million. Adidas
doesn't reveal individual market sales figures, but says it is narrowing
the gap with Nike. According to estimates by Chinese sports-marketing
firm Zou Marketing, Adidas had 2005 annual sales of $385 million and Li
Ning had $300 million.
Mr. O'Neal's alliance with the Chinese brand could help him overcome
perceptions of racism, which were initially sparked when Mr. O'Neal
allegedly made derogatory comments about Mr. Yao before a game. Mr.
O'Neal later said he was joking and that he and Mr. Yao were good
friends, but many Chinese sports fans were rankled nonetheless. At the
announcement yesterday, Mr. O'Neal drew snickers from the audience when
he said, "I'm Shaquille O'Neal and I love China."
Li Ning launched a special "Shaq News" Web site after the announcement,
and will roll out its print and outdoor campaign tomorrow. Mr. O'Neal
this week will visit Beijing and the city of Chengdu to promote the deal.
The Shaq line will launch in China before January, the company said.
Li Ning says it will continue using Mr. Jones, a close friend of Mr.
O'Neal, in its marketing, although he doesn't have his own name-brand Li
Ning shoe. Though the company has international ambitions, it says it
won't begin heavily marketing outside of China until after the 2008
Beijing Olympic Games.
Most Commented/Read Stories in 48 Hours
Today's Top News
� Koizumi's war shrine visit strongly opposed
� Hu urges to study Jiang's works
� Growth drives emissions higher
� China confirms new H5N1 human case
� Fixed-asset investment likely slowed
Top World News
� Koizumi to visit shrine on August 15
� FBI: No terror groups in cell phone case
� Mideast parties meet to discuss pullout
� Lebanese return home after cease-fire
� Blasts kill 47 in Shiite area of Baghdad
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
