China's Big Brands Tackle Web Sales
Li Ning Co., China’s leading sportswear company, is betting that selling sneakers and clothing online will give it an edge against giant rivals like Nike Inc. (NIKE) and Adidas AG, an example of how established consumer companies in China are finally starting to embrace the Web after years of ceding electronic commerce to Internet upstarts.
Li Ning, founded nearly 20 years ago by a former champion gymnast of the same name, opened its first Web site for selling direct to consumers last year. While still a small share of total sales, traffic on the site has grown so quickly that Li Ning has hired International Business Machines Corp. (IBM) to help it build a new site, expected to launch in March, that will be able to handle more volume and will include a new features like wireless services.
China has the largest population of Internet users in the world, with 338 million at the end of June. But until fairly recently, they didn’t spend much buying things on the Web. That is starting to change.
