Best Odds Center
best odds centre button
Click here!
Sport TV
watch live tv button
Click here!
to watch
Live FootBall
NPFL
Click here!
Live Scores
play watch Live Score button
Click here!

Nike Banks on Jordan Brand to Revive Sales in China

Posted : 26 June 2024

After experiencing a decline in sales in recent years, Nike has opened a massive Jordan brand store in Beijing, aiming to attract affluent customers with limited edition products, including $1,000 shoes. This move, reported by Bloomberg, is part of Nike's strategy to boost its sales in China.

 

The economic slowdown and escalating tensions between China and the United States have significantly impacted Nike's sales in the country. Three years ago, China accounted for almost 20% of Nike's global sales, but this figure has now dropped to less than 15%, according to Bloomberg.

 

Nike's overall situation has been challenging, with recent layoffs at its headquarters and an 11% drop in stock value due to investor concerns over low product demand. The company's management has warned of an expected decline in sales over the next six months.

 

Nike is banking on its Jordan brand to rejuvenate its fortunes in China, despite the decline. The new 1,000-square-meter store in Beijing, called The World Of Flight, celebrates Michael Jordan and offers limited editions of various products, including high-priced shoes. According to Blair Zhang, a senior fashion analyst at Mintel, this strategy aims to attract younger consumers and high-income buyers, crucial for achieving higher growth.

 

China's consumers have increasingly favored local brands like Anta and Li Ning, influenced by nationalist consumerism and Nike's decision to stop using cotton from Xinjiang due to labor abuse allegations. Despite a boycott, Nike still led sports sales in China but has since fallen behind Anta and Li Ning.

 

However, the Jordan brand remains robust in China, with a loyal consumer base that accounts for a significant portion of Nike's market share in the country. Nike's CEO John Donahue has highlighted the Jordan brand as a key player in the company's revival, allocating more resources to it as part of a broader strategy to cut costs and improve efficiency.

ADD A COMMENT :

Hot Topics

close button
Please fill captcha :