On the Economic Impacts of the Xinjiang Cotton Incident upon Indigenous Local Chinese Brands

A Case Study of Li Ning

Abstract

Guided by the SWOT model, this thesis explores the economic impacts of the Xinjiang Cotton Incident upon indigenous local Chinese brands with a case study of Li Ning. Coupled with a comparative analysis method, this thesis analyses the changes on revenue and market development in 2020 and 2021 and finds that the Xinjiang Cotton Incident has great influences on Li Ning in economic income, market development, regional development and the development of relevant industries. From the perspective of domestic and international markets, the income of domestic market increases greatly, while the proportion of international market decreases. In a word, the revenue has been rising sharply in all aspects. In terms of the cotton industry and the sporting goods industry, it not only affects the production and sales of cotton in Xinjiang, but also seriously affects the safety of China's cotton industry and its downstream textile industry. But the revenue of domestic sports brands will continue to rise in the coming period. Domestic sports brands will usher in a new era of development. For the future development, Li Ning Company is supposed to position products and target consumer groups accurately, improve the quality of advertising, and to create a more distinctive brand culture.