Meng says the core aim of the plan is to transform Li-Ning from a wholesale to a retail business model. She clarifies that "much of the plan involves handholding with distributors and sub-distributors (i.e. distributors who also stock other brands), for instance, helping them do better promotions, store displays and achieving more efficient supply chains to achieve the effect of the retail business model" For example, the new retail model will include faster product replenishment so that distributors aren't saddled with unsold products for long periods of time.
Zheng adds that the stores under the pilot project of this retail business model performed significantly better. The only challenge, is the increase in the amount of work since Li-Ning has never implemented such a scheme, she says.
Woes or no, Li-tying still managed to sign a multi-million dollar contract with NBA star Dwayne Wade, which many analysts highlighted as a bright spot in the company's current state.
"We chose Wade because he's not the tallest, and strongest, but he's gotten to where he is today through sheer hard work. That is a story which resonates with Chinese consumers appreciate a strong work ethic," Zheng says.