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LI-NING: The “Chasing Dreams” Airport Show Controversy
LI-NING, founded by China’s “prince of gymnastics” Li Ning in 1990, is a professional sports brand. On September 20, 2022, LI-NING held its “Chasing Dreams” airport show in Hubei, China. However, on October 15, netizens pointed out that some of the new products resembled Japanese military uniforms from the time of the Second World War, quickly sparking a heated debate online. On October 17, two senior executives from LI-NING made statements on social media regarding the situation but only succeeded in drawing further criticism from netizens. LI-NING’s stock price also fell, causing many to question the executives’ actions on the matter. On October 19, LI-NING released an official response, bringing the public debate to a climax. How should LI-NING manage its crisis and brand communication better in the future? -
Hubang Chili Sauce: Adding Pungency to a Competitive Emerging Market
In 2015, Hubang chili sauce was launched in China’s highly competitive emerging condiment and sauce market. Instead of undertaking direct competition and a costly price war in traditional retail channels already dominated by a market leader, Wenjin Lu, a local entrepreneur and the chief executive officer of Hubang, developed a unique strategy to achieve breakthroughs via online-to-offline (O2O) food delivery platforms, whose consumers were made up of a fast-increasing consumer base of Internet and mobile users. By 2020, Hubang had achieved an annual sales milestone of US$29 million and secured series A financing. Lu faced a new dilemma: Should Hubang keep strengthening its unique O2O channel through market penetration and product expansion, or should it reposition to enter the retail market with its existing products?