Leo Burnett has confirmed that the agency and Li Ning have agreed to end their decade-long partnership, effective 20 January.
The decision was mutual, according to a Leo Burnett spokesperson, who added that the agency's teams have produced and delivered all creative under the most recent contract with Li Ning, including advertising and marketing planned for the London Olympic Games.
Agency briefings for the integrated pitch, which includes creative, media, and PR, are taking place this week, and Leo Burnett has decided not to take part.
Li Ning’s current agency roster includes media agency Starcom and PR agency Ruder Finn. The brand also uses a US-based creative agency, Zambesi, which specializes in sports and entertainment brands, for its basketball creative account.
Undisclosed industry sources said that the integrated pitch is due to a number of senior management changes within Li Ning, including the resignation of Frank Chen, the brand's chief marketing officer two weeks ago. Last year Guo Jian Xin, chief operating officer, Fang Shi Wei, vice-president and chief marketing officer, Lin Li, e-commerce director, and Xu Maochun, chief product officer, all departed from Li Ning as well.
As reported in Business Week Li Ning’s revenues in the first half of 2011 declined starkly and its stock price had dropped while its downscale Chinese rival Anta and global brands Nike and Adidas all saw their share prices rise.
As part of its ambitious plan for overseas expansion, Li Ning launched an advertising campaign in the US market in May and set up a joint venture with Acquity Group, a Chicago-based brand consulting firm, to expand US distribution. Acquity Group designed the ad campaign, including TV, print and online exposure, which has billed as the brand's largest marketing effort in the US.
Back in summer 2010, Li Ning redesigned its logo and launched a new tagline ‘Make the change’ as part of a brand-revitalisation plan.