Expert Analysis: Why Did Nike Decline In China's Market Performance?

Nike's sales in China have declined due to the impact of China's economic downturn and the failure to catch timely and rapid changes in the tastes of Chinese consumers. Meanwhile, Nike's main competitor Adidas's share in the Chinese market is growing. Some analysts even predict that Adidas will surpass Nike and become the industry leader in the Chinese market.

Benefit from "Jordan" basketball. shoes And the strong sales trend of "Fly Knit" seamless running shoes, Nike's performance in the North American market is still excellent, but Nike's performance in the Chinese market is not satisfactory, and its sales declined in the first quarter. In the past fiscal year, sales of Nike in every region including Western Europe have been rising, but only in China.

"The competition in the Chinese market is not a sprint run by 100 meters, but a marathon race," said Mark Parker, head of Nike.

Analysts said Nike's sales decline was based on a series of comprehensive reasons: the decline of China's macro-economy, overstock of inventory, and the sharp reduction in prices of competitors.

At the same time, Nike's performance is not satisfactory in catering to the tastes of Chinese consumers. However, Adidas, its main competitor, is far ahead in this respect. In the face of increasingly picky Chinese customers, Adidas is totally consistent with the tastes of Chinese customers.

When Nike's sales in China declined, Adidas's sales rose all the way, which means Adidas is taking Nike's market share. Analysts even predicted that Adidas in Germany might overtake Nike as the industry leader in the Chinese market.

Susquehanna Financial group analyst Christopher Svezia said: "Nike should wake up, which should be a warning bell for Nike. The consumption tastes of Chinese consumers are becoming more and more sophisticated. The consumption era of "give me everything" is gone forever. The Chinese market is very important and profitable for Nike. "

In order to boost sales of Nike products in China, Nike spokesmen such as basketball star Lebron James and Kevin Durant will fly to China for product promotion this summer.

The new products developed by Adidas are full of fashion trends and have gained many consumers' preferences. Nike is still taking the "idealistic" line, insisting on sports value, and how much it does not have an advantage.

China's economic slowdown has led to a decline in consumer demand, triggering a sense of crisis in the Chinese market. Insiders say the whole clothing And the footwear market is generally difficult to sell, a large number of backlog, and excessive discount sales promotion and other issues. Nike has begun to be cautious about its recent business in China. Although Nike is in the leading position in China, it has been seriously affected by various macroeconomic pressures and competitive promotion environment, and its sales have begun to decline.