Former Chinese gymnast Li Ning's sportswear business, valued at about US$4 billion when he built it in 2010, is now at an all time low, Reuters in China reported.

In August, Li Ning reported a loss of about US$100 million during  the first half of the year. The loss was triple the amount that the company lost in 2013.

Like Us on Facebook

Li Ning's spokesperson said the company is expecting a full recovery within two years as it spends millions in advertising expenses.

The business is reportedly suffering because customers have shifted to other sports brands like Nike.

Because of its heavy losses, the company has lost about 80 percent of its market value.

Li Ning has been trying for years to plan a turnaround for the business by keeping up with the recent trends in Chinese sports, an attempt to attract a larger demographic with their mid-range prices.

However, business analysts forecast that Li Ning's plan in attracting younger customers may backfire and its loyal customers may stop purchasing the brand.

Senior analyst James Roy of the Shanghai China Market Research Group said that as the company targets the youth, it may cause them to lose "a lot of those aged over 30 who were traditionally a more loyal customer base."

Younger customers, though, have not yet picked up on the company's strategy.

A 22-year-old Chinese student interviewed by Reuters Shanghai said Li Ning's products appear to be tailored for children around 11 or 12 years old, and with peer presure among teens and young adults, the trend is to go with Western brands.

Business analyst Steve Chow of the Sunwah Kingsway Group Research said at the moment, it would be hard too determine whether the company is on its way to recovery when its incurring more losses.

TagsLi Ning, sportswear, business loss, li ning sportswear