CEO Of Nike: Nike Is A Brand That Belongs To And Serves China

Nike CEO John Donahoe: "Nike is a brand that belongs to and serves China."

The statement appeared in a conference call between Nike CEO and Wall Street analysts. According to overseas media reports, Nike CEO held a conference call with Wall Street analysts on May 24 after the release of the fourth quarter results. When asked about the competition of Chinese brands, he made the above remarks.

As we all know, Nike caused strong resistance from Chinese netizens because of the cotton incident in Xinjiang. Now, why did John Donahoe publish this argument that was ridiculed by netizens as "embroidering red flag overnight"?

This has to mention the latest quarterly announcement released by Nike a few days ago. In the three months ending May 31, 2021, Nike group's revenue rose 96% year-on-year to $12.3 billion, and net profit changed from loss to profit. In terms of regions, North America, as the largest market of Nike, achieved a year-on-year growth of 141%, followed by EMEA with a growth rate of 124%, while the third largest market, Greater China, had a growth rate of only 17%.

Before that, Greater China has maintained high double-digit growth for many years. In the fourth quarter of 2020, Greater China market is the only region where Nike has achieved positive growth. Such a rapid growth market, now contributing 17% of the increase, is obviously related to the Xinjiang cotton incident.

In the network's massive boycott of Nike, although from time to time there are bad voices, but the facts have proved that the boycott is indeed effective. Nike's financial report shows that because of the Xinjiang cotton incident, Nike's Chinese market has indeed shaken, which seems to have the CEO's efforts to save the Chinese market.

Chinese netizens do not seem to buy the effort of "showing loyalty". Under the discussion of related topics, netizens said, "it's not the fragrance of RMB yet", "Nike is a brand serving China (RMB)"

Nowadays, domestic brands Anta and Li Ning have gradually expanded their market share, and Nike's unique advantage is gradually falling back. On the "cash ability" of the Chinese market, Nike has to bow down and actively strive to regain the confidence of Chinese consumers“ To what extent can Nike belong to China and serve China?