TRACK TEST: A consumer tests his running speed on a sports machine developed by Li Ning Co. Ltd. in Yueyang, Hunan Province (LI GA)

With plans to sprint onto the global stage within the next three years, Li Ning Co. Ltd., a bellwether of China's sportswear business, took a bold leap to achieving its goal by opening its first outlet in the United States, in Portland, Oregon, on January 5. The outlet was followed by the official launch of Li Ning's American website on February 2.

Portland is an epicenter in the American athletic footwear and sportswear industry, home to well-known brands like Nike and Columbia. Li Ning's new store is located only one mile from Niketown, carefully exposing itself to the global sportswear guru.

The first few apparel items and shoes launched in the United States use exotic oriental elements to attract target buyers and entice trendsetters. Designers incorporated widely known Chinese cultural aspects—kungfu (martial arts in general) and Tai Chi (one kind of martial art)—into the products.

Li Ning plans to penetrate the global market in 2013, and become one of the top five sportswear brands in 2018, with 20 percent of sales revenue coming from overseas markets.

Shanghai-based China Business News reported Li Ning's sales revenue in 2009 was expected to grow 25 percent to about 8.3 billion yuan ($1.2 billion). Li Ning is currently poised to overtake Nike to be the best seller on the Chinese mainland.

Zhang Zhiyong, CEO of Li Ning, estimated the whole footwear and apparels market in China will grow 16 percent in 2010 and is confident Li Ning will outperform the industrial average.

As it accustoms itself to its new American home, Li Ning is tapping into the huge pool of sportswear designing talent in Portland. The company hired former Nike designers, such as Alan Hardy and Matt Rask, to bring the American spirit into the oriental sneakers.

Zhang said the company will focus on the development of sneakers, which is second in importance only to its badminton sportswear. The company will also make headways to provide sneakers and apparels for popular American games like basketball, American football and baseball.

Li Ning marched into the global sportswear arena a few years ago by sponsoring major international sports games and hiring NBA stars as promoters. At the 2004 Athens Olympic Games, Li Ning provided professional apparel for Spanish basketball players. At the 2006 Basketball World Championship, the Spanish team took the crown, bringing Li Ning's logo into the spotlight.

In 2006, Li Ning signed a five-year deal with NBA legend Shaquille O'Neal to promote the brand in China. However, hardly anyone could notice O'Neal sporting G-Shark sneakers—Li Ning's latest professional basketball footwear—during this NBA season.

But differentiating itself from established brands like Nike and Adidas might be Li Ning's biggest challenge. Li Ning's logo, which is supposed to be a combination of L and N, resembles Nike's familiar swoosh, and its slogan "Anything is possible" sounds like Adidas' "Impossible is nothing." The mix of the two features makes Li Ning look more like a knockoff than a stand-alone sportswear brand.

Ben Tamburro, a Portland native and a regular visitor to China, said in an interview with Beijing Review he would probably turn down the opportunity to buy Li Ning products since he had never heard of the brand before. He added the familiar Nike shoes and apparels were a comfortable fit thanks to Niketown where prices are attractive. Tamburro's answer is similar to many Americans, as the Li Ning name and brand means little to those born and raised in a Nike and Adidas-dominated market.

Zhang admitted that even though Li Ning has taken a substantial market share in China, its brand equity still lags far behind global giants, which has only motivated Li Ning to go global.

"Adidas has a history of more than 100 years, and Nike, since its rise in the 1960s, has 40 years. But our company is only 20 years old and we need more time," Zhang said.

Zhang also said the company looked to establish its overseas presence through acquisitions and product development. But he did not give any time schedule on future acquisition activities.

In the domestic market, the middle- and high-end sportswear market is carved up by Li Ning, Nike and Adidas. But more noticeably, a number of homegrown sportswear companies are catching up with their forerunner.

Anta, QiaoDan, XTEP, Peak and 361° have also become household footwear brands in the domestic market. They are gearing up to establish brands in overseas markets instead of merely making shoes under a foreign label.

"Domestic sportswear brands are paying close attention to Li Ning's moves," said the boss of a shoemaking company in south China's Guangdong Province, as it quoted anonymously by Southern Weekend, a Guangzhou-based newspaper. "Li Ning is for sure the No. 1 brand in China, but is also sandwiched between high-end and low-end brands. The problems Li Ning is enduring and the journey it embarks on will be unavoidable for all of us in the future."

Li Ning Milestones

In 1984, 21-year-old Li Ning won three gold medals, two silver medals and a bronze medal in gymnastics at the 1984 Summer Olympics in Los Angeles, California, earning him the title "Prince of Gymnastics."

In 1988, Li Ning retired from sports competition.

In 1990, he founded Li Ning Co. Ltd., which made and sold sportswear.

In 2002, the sales revenue of Li Ning Co. Ltd surpassed 1 billion yuan ($146 million) for the first time.

In 2004, the company was listed on the Hong Kong stock market, raising HK$440 million ($56.6 million) in its initial public offering.

In 2005, Li Ning entered into an agreement with the NBA as the basketball association's official marketing partner in China.

In 2008, Li Ning set up a "global innovation center" in Portland, the United States. Li Ning himself lit the 2008 Summer Olympic flame in the opening ceremony on August 8 in Beijing.

In 2009, Li Ning opened its first overseas flagship store in Singapore.

In 2010, the company opened its first American-based store in Portland, and launched an American website www.li-ningusa.com in February.