Li Ning to tap mid-tier market as losses mount

Li Ning (2331.HKG), a major Chinese manufacturer of athletic gear, will target the mid-tier market and quit the non-sportswear business after a greater-than-expected loss of US$63.39 million (RMB391.54 million) in 2013, South China Morning Post reported. Revenue fell 12.8% to US$942.26 million (RMB5.82 billion), partly due to a shrinking outlet network. The number of stores fell to 5,915 from 8,255 in 2011. Like many industry rivals, Li Ning, founded by the Olympic champion gymnast Li Ning, expanded overzealously before the 2008 Beijing Olympics. The company’s executive vice chairman said Li Ning would re-orient toward the mid-tier market.