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NIKE vs ERKE: Two Sportswear Brands Trending on Weibo for Totally Different Reasons

While domestic brand Erke is all the hype, Nike is growing increasingly unpopular.

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Domestic sportswear company Erke has recently become a top-selling brand in China. The American sports brand Nike, on the other hand, has seemingly lost its reputation in the Chinese market. This week’s trending Weibo topics relating to the companies are telling of the ongoing battle between domestic and international sportswear brands in China.

 
By Wendy Huang & Manya Koetse
 

American sportswear brand Nike and Chinese domestic sportswear brand Erke (鸿星尔克) both popped up in the Weibo trending lists this week, but for two totally different reasons.

While Nike got caught up in controversy, Erke was praised. The stark contrast between how the two brands are represented on social media today is telling of their recent position in the Chinese market.

 
Nike Store Employee vs Chinese Migrant Worker
 

The trending incident involving Nike this week was about a bad shopping experience at the Nike store in Kunming, Yunnan province. On August 13, the 44-year old migrant worker Mao Zhigao (毛治高) took his three kids out shopping in the Nike store to reward them for their good school results.

What was supposed to be a fun family occasion turned into an awful afternoon when a female employee at the store reportedly snatched Nike clothes out of the hands of the youngest son and put them back on the hangers again.

When the boy tearfully told his parents about what happened, the incident soon escalated. The boy’s father, Mr. Mao, believed that the Nike employees were treating the family badly based on their appearance. As a migrant worker working on a construction site, Mao had just returned from work and was in his work clothes.

When the young boy’s mother confronted the employee about what had happened, the altercation apparently turned physical when the Nike employee started scratching and hair-pulling. Local police officers eventually stepped in to mediate.

Although the Mao family demanded an apology from the Nike staff and also filed a complaint to Nike, they did not receive any reply. After six days, local media got involved and the story went trending.

Nike then responded to the issue with an apology and statement that the female employee was dismissed.

By Monday, August 23rd, some hashtags related to the incident received millions of views on Weibo:

On social media, the Nike incident was mostly viewed through the angle of unfair treatment and the international brand discriminating against a Chinese migrant worker.

 
Erke as ‘Patriotic Brand’
 

While Nike is being criticized, Erke, the Chinese sportswear brand by Hongxing Erke Group (鸿星尔克), is praised because it announced to donate one million yuan ($153,800) to Henan Museum to support the museum’s rebuilding project after the devastating flood.

A picture posted by Henan Museum on its Weibo account (@河南博物院)  shows that Erke put the donation in the name of “national netizens.”

The picture soon went viral on Weibo, with the hashtag “ERKE Donates One Million Yuan to Henan Museum” (#鸿星尔克向河南博物院捐赠一百万元#) receiving 450 million views, and “ERKE Together With National Netizens” (#鸿星尔克 携全国网友#) receiving 140 million views.

This is the second time that Erke made a donation to help Henan in light of the floods. Its first donation in late July of this year is actually what helped the brand back into the limelight.

The domestic sportswear brand then donated 50 million yuan ($7.7 million) to the Henan flood. This attracted a lot of attention on Chinese social media since Erke was known as a relatively low-profile brand that seemingly has not been doing too well over the past years.

After people found out that the company donated such a high amount of money to help the people in Henan despite its own losses, its online sales went through the roof – everyone wanted to support this generous ‘patriotic brand.’ While netizens rushed to the online shops selling Erke, the brand’s physical shops also ran out of products with so many people coming to buy their sportswear. One female sales assistant was moved to tears when the store suddenly filled up with so many customers.

Image via Ellemen.

Lei Jun, the founder of the electronics company Xiaomi, also joined the Erke hype. He published a picture of him wearing Erke shoes on Weibo, the hashtag dedicated to this topic then received about 200 million views (#雷军晒鸿星尔克鞋#).

 
Consumer Nationalism and Sportswear Brands
 

It is not just Nike that has seemingly become less popular in China. Earlier this month, one hashtag about another global sports brand, Adidas, also went viral on Weibo. The trending hashtag was about the brand’s revenue growth of Q2 in China dropping by 16% (#阿迪达斯在华收入下跌16%#), receiving more than 110 million views.

During its Q2 2021 conference call, in response to a question about the current consumer demands regarding global brands vs domestic brands in China, CEO of Adidas Group Kasper Rorsted said: “We continue to see a strong demand for products in China, [but] we believe right now that demand has been scooted towards Chinese local brands more than global brands.”

On August 24, news about the online sales of the Chinese Anta Sportswear brand topping those of Nike and Adidas received over 200 million views on Weibo alone (#安踏线上首超耐克阿迪#).

It seems that international sports brands have to look for new ways of winning over consumers in the Chinese market. This shift partly relates to two issues.

The first major issue that has impacted the popularity of brands such as Nike and Adidas has to do with the fact that they are members of the BCI (Better Cotton Initiative), which came under fire in China earlier this year after it had announced it would cease all field-level activities in the Xinjiang region with immediate effect due to concerns over the alleged use of forced labor.

The BCI ‘Xinjiang Cotton Ban’ led to an online ‘Xinjiang Cotton Support’ campaign in China. The BCI member brands boycotting Xinjiang cotton were soon labeled as being ‘anti-China.’ Chinese staff members at Nike and Adidas stores were scolded during live streams, and photos of people burning their Nike shoes soon started circulating on social media.

Another trend that has impacted the influence of foreign sportswear brands in China relates to the rise in popularity of local, Chinese sportswear brands. Domestic brands such as Anta Sports and Lining have been active in Chinese since the 1990s and are now profiting from changing consumer sentiments in a new era that is all about “proudly made in China.”

Besides incorporating more Chinese elements into their product design, Chinese celebrities also play a crucial role in the marketing of these domestic brands. Chinese actor and singer Xiao Zhan (肖战) was praised on social media for becoming the new brand ambassador of the Chinese sportswear brand Lining. When celebrity Wang Yibo became the spokesperson for the domestic brand Anta Sports, one Weibo hashtag page on the topic received over one billion views (#王一博代言安踏#) in late April of 2021. The promotional poster featuring Wang Yibo shows him wearing a t-shirt with “China” on it, including the national flag – profiling Anta as a ‘nation-loving brand.

On social media, it already became clear earlier this year that a distinction was being made between foreign, ‘anti-Chinese’ brands, and domestic, ‘patriotic’ brands (read more here).

Erke indirectly profited from these existing consumer sentiments when, as a relatively smaller domestic brand, it was hyped as the no 1 patriotic sportswear brand for donating so much money to help out during the Henan floods.

Although Nike and Adidas each also contributed 20 million yuan ($3 million) toward Henan floods relief efforts, their donations barely received online attention. In fact, Nike was even condemned online for donating “zero yuan” at a time when it had already announced donating 20 million (more about that here).

The Erke hype even went so far that Chinese livestream sellers of Nike and Adidas notified their viewers that they actually supported the domestic Erke brand.

Adidas livestream sellers supporting Erke.

These nationalistic consumer sentiments also surfaced during the Olympics, when Chinese sport shooter Yang Qian was criticized for her collection of Nike shoes. One Beijing Television journalist wrote on social media: “Chinese athletes, why would you want to collect Nike shoes, shouldn’t you take the lead in boycotting Nike? Aren’t our domestic brands such as Erke, Li Ning, and Anta good enough [for you]?”

During the Tokyo Olympics, Team China’s podium uniform was designed by Chinese sportswear brand Anta, which will also be the Official Sportswear Uniform Supplier for the 2022 Winter Olympics.

Anta x Olympics.

In light of everything that happened during the past few months, it is likely that for the time to come, domestic brands such as Erke will continue to flourish while foreign brands might see their China sales slump.

Meanwhile, on social media, netizens continue to express their support for domestic brands while denouncing Nike.

Multiple commenters wrote: “Erke is like ‘I’ve gotten wet, so I want to give others an umbrella too.’ Nike is like ‘Put down those clothes, your dad looks dirty, how you can afford to buy?'”

“I’ll support domestically produced products,” many others write: “Brands that are not patriotic should get out of the country.”

 

By Wendy Huang & Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. Please note that your comment below will need to be manually approved if you’re a first-time poster here.

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China Food & Drinks

Would You Like Coffee with Your Sneakers? Chinese Sports Brand Li-Ning Registers Its ‘Ning Coffee’ Brand

Li-Ning enters the coffee market: “Will they sell sneaker-flavored coffee?”

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An unexpected competitor is joining China’s coffee market. With over 7000 stores in the country, Li-Ning has the potential to become the biggest athletic coffee chain yet.

Another player is joining mainland China’s growing coffee market. It’s not an American coffee giant, nor a coffee house chain from Hong Kong – it is China’s leading sportswear brand Li-Ning Sports (李宁体育).

Li-Ning registered its coffee brand under the ‘NING COFFEE’ trademark. As reported in an article written by ‘Investment Group’ (@投资界) and published by Toutiao News (@头条新闻), Li-Ning has confirmed on May 6 that it will provide in-store coffee services to enhance customers’ shopping experiences in the near future.

The move means that Li-Ning could potentially become a big player in China’s coffee market, competing with major brands such as Starbucks, Luckin Coffee, Costa and Pacific. If the in-store coffee cafes would roll out in most of its shops, there could be over 7000 Ning Coffee cafes in China in the future. By the end of 2021, Li-Ning Sports had a total of 7,137 stores in China.

Starbucks has 5,400 stores in China. Leading domestic coffee chain Luckin Coffee expanded to over 6000 stores last year. Costa Coffee, although closing some of its China stores in 2021, announced that it aims to have a total of 1,200 stores open in China later this year. Looking at Li-Ning’s presence across China, its in-store coffee cafes could be serious competition for the leading coffee chains in the country.

Over the past few years, various Chinese sportswear brands, including Anta Sports and Erke, have seen a rise in popularity, but Li-Ning is still China’s most famous brand name for athletic apparel and shoes. The company was founded in the early 1990s by Chinese Olympic gymnast and business entrepreneur Li Ning (1963) and was generally seen as a Nike copycat – the original logo was even similar to the Nike swoosh. Although Li-Ning looked like Nike, the brand is more appealing to many Chinese consumers due to the fact that it is cheaper and made in China.

Li-Ning markets itself as being “deeply and uniquely Chinese” (Li Ning official website 2022), which has made it more popular in an era of “proudly made in China” (read more about that here). Moreover, it also promises to offer high-quality sportwear at a price that is cheaper than the American Nike or German Adidas.

Li-Ning’s success is also owed to its marketing strategies. Besides being the official marketing partner of many major sports events, including the NBA in China, the brand has also contracted with many household athletes and famous global ambassadors.

Over a decade ago, marketing observers already noted that despite the remarkable success of Li-Ning in China, the brand still had a long way to go in order to strengthen its image as a long-term brand, recommending Li-Ning to “create excitement around the brand” by building more associations related to lifestyle and coolness to better resonate with younger Chinese customers (Bell 2008, 81; Roll 2006, 170).

With its latest move into the coffee market, it is clear that Li-Ning is moving its brand positioning more toward the direction of lifestyle, trendiness, and luxury. Although purchasing a coffee at Starbucks or Luckin is part of the everyday routine for many urban millennials, coffee is still viewed as a trendy luxury product for many, relating to both cultural factors as well as economic reasons. As noted by Cat Hanson in 2015, the price of a single cup of coffee was equal to a month’s worth of home broadband internet (read more).

Previously, other fashion brands have also opened up coffee stores in China. As reported by Jing Daily, international luxury brands Prada, Louis Vuitton, and FENDI also opened up coffee cafes in mainland China.

Another unexpected coffee cafe is that of China Post, which opened its first in-store ‘Post Coffee’ in Xiamen earlier this year. On social media, many netizens commented that the brand image of the national post service clashed with that of a fairly expensive coffee house (coffee prices starting at 22 yuan / $3,3).

“The postal services are located in cities and in the countryside and are often used by migrant workers, and generally this demographic isn’t buying coffee,” one person commented, with another netizen writing: “This does not suit the taste of ordinary people, it would’ve been better if they sold milk tea.”

Post Coffee, via Jiemian Official.

On Weibo, Li-Ning’s journey into the competitive coffee market was discussed using the hashtags “Li-Ning Enters the Coffee Race” (#李宁入局咖啡赛道#) and “Li-Ning Starts Selling Coffee” (##李宁开始卖咖啡##).

Like with China Post, many commenters say the combination of sportswear and coffee is not something they immediately find logical. “Will they also sell sneaker-flavored coffee?” one person wondered, with others thinking selling coffee – seen as a product from western countries – does not exactly match with Li-Ning as a ‘proudly made-in-China’ brand.

“How would you feel about trying on some clothes at Li-Ning while sipping on Li-Ning coffee? I understand Li-Ning is jumping on what’s popular, and this time it’s coffee,” one Weibo user writes, with others also writing: “I think it has potential.”

“I’m willing to try it out,” various commenters write. For others, they want to see the menu first: “It all depends on the price.”

For more about the coffee and tea market in China, check our other articles here.

By Manya Koetse

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our weekly newsletter and get access to our latest articles:

References

Bell, Sandra. 2008. International Brand Management of Chinese Companies. Heidelberg: Physia-Verlag.

Roll, Martin. 2006. Asian Brand Strategy: How Asia Builds Strong Brands. New York: Palgrave Macmillan.

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©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China and Covid19

King of Workout Livestream: Liu Genghong Has Become an Online Hit During Shanghai Lockdown

Liu Genghong (Will Liu) is leading his best lockdown life.

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With their exercise livestreams, Liu and his wife are bringing some positive vibes to Shanghai and the rest of China in Covid times, getting thousands of social media users to jump along with them.

On Friday, April 22, the hashtag “Why Has Liu Genghong Become An Online Hit” (#为什么刘畊宏突然爆火#) was top trending on Chinese social media platform Weibo.

Liu Genghong (刘畊宏, 1972), who is also known as Will Liu, is a Taiwanese singer and actor who is known for playing in dramas (Pandamen 熊貓人), films (True Legend 苏乞儿), and releasing various music albums (Rainbow Heaven 彩虹天堂). He is a devout Christian.

Besides all of his work in the entertainment business, Liu is also a fitness expert. In 2013, Liu participated in the CCTV2 weight loss programme Super Diet King (超级减肥王, aka The Biggest Loser) as a motivational coach, and later also became a fitness instructor for the Jiangsu TV show Changing My Life (减出我人生), in which he also helped overweight people to become fit. After that, more fitness programs followed, including the 2017 Challenge the Limit (全能极限王) show.

During the Covid outbreak in Shanghai, the 50-year-old Liu Genghong has unexpectedly become an online hit for livestreaming fitness routines from his home. Together with his wife Vivi Wang, he streams exercise and dance videos five days of the week via the Xiaohongshu app and Douyin.

In his livestreams, Liu and his wife appear energetic, friendly, happy and super fit. They exercise and dance to up-beat songs while explaining and showing their moves, often encouraging those participating from their own living rooms (“Yeah, very good, you’re doing well!”). Some of their livestreams attract up to 400,000 viewers tuning in at the same time.

The couple, both in lockdown at their Shanghai home, try to motivate other Shanghai residents and social media users to stay fit. Sometimes, Liu’s 66-year-old mother in law also exercises with them, along with the children.

“I’ve been exercising watching Liu and his wife for half an hour, they’re so energetic and familiar, they’ve already become my only family in Shanghai,” one Weibo user says.

“I never expected Liu Genghong to be a ‘winner’ during this Covid epidemic in Shanghai,” another person writes.

Along with Liu’s online success, there’s also a renewed interest in the Jay Chou song Herbalist’s Manual (本草纲目), which is used as a workout tune, combined with a specific dance routine. Liu is also a good friend and fitness pal to Taiwanese superstar Jay Chou.

This week, various Chinese news outlets such as Fengmian News and The Paper have reported on Liu’s sudden lockdown success. Livestreaming workout classes in general have become more popular in China since the start of Covid-19, but there reportedly has been no channel as popular as that of Liu Genghong.

The channel’s success is partly because of Liu’s fame and contagious enthusiasm, but it is also because of Vivi Wang, whose comical expressions during the workouts have also become an online hit.

While many netizens are sharing their own videos of exercizing to Liu’s videos, there are also some who warn others not to strain themselves too quickly.

“I’ve been inside for over 40 days with no exercise” one person writes: “I did one of the workouts yesterday and my heart nearly exploded.” “I feel fine just watching,” others say: “I just can’t keep up.”

Watch one of Liu’s routines via Youtube here, or here, or here.

For more articles on the Covid-19 topics on Chinese social media, check here.

By Manya Koetse

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our weekly newsletter and get access to our latest articles:

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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