Specialist
Former executive at Nike Sports (China) Co Ltd
Agenda
- Nike (NYSE: NKE) in China – development dynamics over the past three years, market share changes, impacts of the pandemic on its supply chain and outlook for 2022
- Nike – changing trends of customer profile, product competencies, brand premium, channel marketing investment and customer acquisition cost
- Strength and weakness comparison with Anta (HKG: 2020), Li-Ning (HKG: 2331) and Adidas (ETR: ADS)
Questions
1.
Could you analyse and comment on Nike’s growth rates and reasons over the past three years?
2.
Under the pandemic in 2022, Nike’s financial statement shows that its overall sales volume has been declining. Nonetheless, the company still estimates that it could achieve a median growth rate in the Greater China region this year. Could you share your opinion on Nike’s goal and estimate?
3.
You have mentioned that supply chain problems are the main reasons causing Nike’s online and offline business pressure. Could you talk about Nike’s pressure regarding its products and channels?
4.
You have just said that Nike missed the good business opportunity this January due to supply chain problems. If the brand could solve the supply chain problems, could it achieve double-digit growth rate as it did in 2019?
5.
Could you further introduce Nike’s core products? Could you take some examples to explain the reasons causing the product competencies to decline? Was it due to the impact of China chic or other players’ similar products’ market occupancy?
6.
According to your observation, how has customers’ preference for Nike, Adidas, Li-Ning and Anta changed?
7.
The rise of China chic has stimulated the rapid development of Chinese sportswear brands. Has the popularity of China chic been fading? Has customers’ preference and demand for medium-to-high-end sportswear brands, such as Nike, started to increase again?
8.
What about the changes in consumers’ overall consumption habits, brand loyalty and price sensitivity over the past few years?
9.
You mentioned Air Force just now. Can you elaborate more on Nike’s product lines? What about the growth curve as well as the strengths and weaknesses of various product categories?
10.
Do you have the figures for Nike’s casual clothing categories, including the overall revenue contribution and growth rates?
11.
Can you talk about Nike’s products’ price increases and decreases over the years? How are its brand premium and the driver behind it?
12.
Do you think that’s because of the impact of the pandemic? How have the discounts of domestic brands including Li-Ning and Anta changed compared with those of Nike?
13.
China Li-Ning series under Li-Ning sees increasing prices. How do you find the overall brand premiums of Chinese brands such as Anta and Li-Ning? Can they continue the trend in the terminal?
14.
Could you talk about Nike’s online and offline marketing strategies? What about its CAC and marketing expense dynamics over the past few years?
15.
Nike has obtained new distributors. Could you talk about changes in Nike’s cooperation model with its distributors including Nike’s management of the distributors and the inventory management?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary 48 hour week trial
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
