Nike orders to reduce $ 1 billion still optimistic about the Chinese market

Every pair of Air Max over $1,000 is still the best selling shoe on Nike's website, but under the pressure of a year-on-year drop in the most recent quarter and a $1 billion decrease in orders in the second half of the year, the production of cheaper products with more consumers has become A realistic choice for Nike.

On the 24th, Nike announced its operating performance report for the fourth quarter of fiscal year 2008/2009 and the entire fiscal year. As of May 31 this year, Nike’s fourth quarter revenue reached US$4.7 billion, a year-on-year decrease of 7%; deductions on exchange rate factors, revenue and Flat in the first half. Throughout the 2008/2009 financial year, Nike’s revenue was 19.2 billion U.S. dollars, a slight increase of 3% year-on-year, and depreciation of the exchange rate factor, which was a 4% year-on-year increase. For the fourth-quarter year-on-year decline, Nike explained that the relocation of more than 1,000 employees has occurred. Cost is an important factor. Prior to this, Nike announced that it would cut 1750 employees worldwide, hoping to cut expenses and adjust its corporate structure. To achieve this goal, Nike spent a total of $195 million in pre-tax income in the fourth quarter of the fiscal year 2008/2009.

Even if layoffs have already been implemented, Nike’s outlook for the next year is still not optimistic. Nike said that from June to November 2009, the company's flagship "Nike" sports shoes, apparel product orders only 7.8 billion US dollars, a year-on-year decrease of 12%, about 1 billion US dollars, deducting exchange rate factors, the order amount will also be The year-on-year decrease of 5%. Ma Gang, a sports products market researcher, told CBN: "Nike's fourth-quarter revenue fell year-on-year, mainly due to Nike's high-end product positioning. Nike's Kobe Bryant and James and other series of sports shoes are priced at the same price The RMB is between 1200 yuan and 1,300 yuan, which belongs to high-end products, and the financial crisis has the greatest impact on mid-to-high-end markets.At present, the United States and Europe are still the main markets of Nike, and these two regions are also the areas that are hit hardest by the international financial crisis. , Consumers’ purchasing power has shrunk severely, and sales have naturally declined.”

The weakness of the European and American markets can be seen from the change in the amount of orders in the second half of this year. According to regional distribution, the amount of orders in the U.S. market decreased by 4% in the second half of this year, and the market in Europe, the Middle East, and Africa decreased by 24%. Nike CEO Mark? Mark Parker said that the high-end market for sporting goods still exists, Nike will not give up, but will also strive to develop products under $ 100 to attract consumers, Parker said: "The consumer must choose, but does not mean It will pay for high prices."

Nike is optimistic about the prospects of China's sports goods market, Nike brand director Charlie? According to Charlie Denson, China has about 500 million young people under the age of 25, which means that it needs 1 billion shoes. China and other emerging markets are the most promising areas for recovery.

Ma Gang said: "China's sporting goods market has also been hit by the international financial crisis. Some domestic sports brands have reduced their annual sales targets from the original 30% to 25%, and Nike naturally cannot be excluded." Financial Year 2008/2009 Nike’s revenue in the Chinese market increased by 22% year-on-year, but the rate of growth in performance has shown a slowing trend. In the fourth quarter, revenue grew by only 6% year-on-year, a figure that increased by more than 60% compared to the fourth quarter of the previous fiscal year. In contrast, it is no longer the same language.