Xiaomi is partnering with sports brand Li Ning for a new generation of "smart" running shoes. (Photo : Reuters)
Chinese companies Li Ning Co. Ltd. and Xiaomi are partnering for a joint technological venture that aims to develop a new generation of “smart” running shoes this 2015.
Li Ning, a sports brand, announced the partnership is its effort to boost its sales, countering the firm's waning fortunes.
Earlier in January, the company, backed by private equity giant TPG Capital and Singapore-based wealth fund GIC, announced that it is expecting its third consecutive full-year loss.
According to company executives, it is recently addressing bloated inventories, restructuring and diminishing demand following the 2008 Olympics held in Beijing.
Industry experts revealed that the sports brand is trying to revive its heyday by targeting the younger Chinese populace as shown in its high-end marketing strategies and product designs.
In fact, in 2013, Li Ning has tapped NBA basketball icon Dwayne Wade for a multi-million dollar sponsorship deal.
The company's top executive, Li Ning, shared that the partnership with Xiaomi's fitness wearable company, Huami Technology, is the very first venture between China's sports and "smart" technology industries. Huami is the firm behind the Mi band.
"We have chosen to collaborate with the Mi band because of Huami Technology's strength in 'smart' wearable products," Li Ning remarked in a statement issued on Monday.
Li added his company's high hopes in using "this opportunity to provide professional 'smart' running shoes to running enthusiasts in China at an affordable price."
The "smart" running shoes will contain chips placed in the soles. The shoes will be connected to a Xiaomi mobile application, which will allow consumers to monitor their progress, analyze their performance and keep track of their achievements.
