The review of the Rmb233.5 million (US$29 million) brief could deal a major blow to two-year incumbent Leo Burnett, if the agency fails to defend its anchor client in the shootout against Bates and Ogilvy & Mather, according to sources.
Ranked third behind Nike and adidas, Li Ning has been investing heavily in product, marketing and expanding its retail presence, led by marketing chief Abel Wu, who is believed to be heading the pitch.
Sources said Li Ning had tasked agencies with devising a brand strategy ahead of the 2008 Olympics in a market where sports brands have grown by as much as 70 per cent annually in the last five years.
"(Li Ning) is only looking at multinational agencies. It has been satisfied with Leo Burnett's work in the past, but the time has just come to review its creative agency relationship and see what else is there as we get close to the Olympics," said one source.
The pitch comes after rivals grabbed major 2008 Olympic deals -- adidas edged out Li Ning to win the 'official sportswear partner' prize for a reported US$80 million, and Nike has sponsorship of 22 of China's 28 Olympic squads, including track-and-field and basketball. In contrast, Li Ning's role has been scaled back to supporting four teams in diving, table tennis, shooting and gymnastics.
Zou Marketing managing director Terry Rhoads said: "There is no margin for error, if Li Ning wants to stay in this inner circle with adidas and Nike. Investors believe that the big challenge for Li Ning is that it has found it hard to articulate a positioning that differentiates it from Nike. Does it want to be a clone or map out its own position?"
