Nike "falls" in China: the net profit of revenue increased, and the digital business could not run Keep

Author ｜ Xiong Yue

On June 27, the international sports brand Nike released the fourth quarter of fiscal year and the annual performance report.

The report shows that in the fourth quarter of fiscal 2022, Nike's revenue decreased by 1% year -on -year to $ 12.2 billion. In fiscal 2022, on the basis of the exchange rate unchanged, Nike's revenue increased by 6% to 46.7 billion US dollars year -on -year; net profit increased by 6% to $ 6 billion year -on -year.

Among them, in terms of Brand, the revenue of the Nike brand increased by 6% to 44.4 billion US dollars year -on -year, and Converse's revenue increased by 7% to $ 2.3 billion year -on -year. This was mainly driven by Nike's direct business Nike Direct.

It is reported that Nike Direct increased by 15% year -on -year to $ 18.7 billion, of which digital channels and offline stores increased by 18% and 10% year -on -year, respectively. At the same time, Nike Direct's profit margin and increased product sales prices have driven the gross profit margin to increase by 120 basis points to 46%.

In terms of market areas, Greater China is the only market with negative growth in both income and net profit. Specifically, revenue dropped by 9% to US $ 7.55 billion, and net profit decreased by 27% to US $ 2.37 billion. In this regard, the report said that this is mainly due to the increase in inventory, logistics and transportation costs due to large -scale epidemic conditions.

In addition, compared with fiscal 2021, the proportion of market revenue in Greater China also decreased from 18.6% to 16.2%. This means that Nike's dependence on the Chinese market is decreasing, and the latter is still the third largest market in the world.

However, Tang Ruo, president and CEO of Nike Group, said, "It will continue to increase investment in China, and strengthen our digital business capabilities through the China Technology Center, implement the strategy of 'in China, China', and better serve China 'to better serve China' and better serve China. Chinese consumers. "

It can also be seen from the financial report that under the guidance of direct -oriented consumer (DTC) strategy, Nike's digital business is providing growth momentum for this old sports shoes and retailers.

The financial reports of the years show that Nike's D2C sales have soared from US $ 2.5 billion in 2010 to 16.4 billion US dollars in 2021.

Specific to the Chinese market, Nike has gradually established a set of Nike APP, Nike.com, SNKRS App, Nike WeChat Mini Program, NTC WeChat Mini Program, etc., plus three flagships on the Tmall platform layout The store and an official Ole shop.

However, under factors such as intensified competition and supervision, Nike's digital development in China is not so smooth.

Recently, Nike's running application Nike Running Club (referred to as "NRC") announced that it would stop serving in mainland China from July 8, 2022. On the runway of running, Xiaomi Movement, Huawei Movement, Keep, Sugar Bean, Yueqi Circle and other local players have greater advantages.

In addition, Adidas's operations in the domestic market, which is not as optimistic in the domestic market.

In the first quarter of 2022, Adidas' Greater China revenue decreased by 35% year -on -year. Drag by this, the revenue of Adidas in the global market decreased by 3% to 400 million euros year -on -year.

Because of the significant decline in China's revenue, Adidas made conservative estimates on various performance indicators this year.

Among them, the estimated revenue growth rate is 11%, which is the lowest value of 11% to 13% of the previously expected growth rate. The operating profit margin will remain at 9.4% last year, rather than 10.5% to 11% of the previous expectations. The gross profit margin will reach the level of 50.7% last year, and the previously expected is between 51.5% and 52%.

In addition, due to the closure of a large number of stores in the epidemic, and the number of passenger flows in some areas that have not been directly affected by the epidemic, Adidas predicts that the revenue in China will "decline significantly" in 2022.

In recent years, domestic brands such as Anta and Li Ning have risen strongly, and the epidemic affects the retail stores of offline stores. Nike and Adidas, two international leaders, have been shaken in the absolute advantage of domestic sports shoes and clothing tracks.

Judging from the sales of domestic sports brands this year, the sales data of the 618 full network e -commerce platform released by Star Map data shows that in sports brands, Nike, Li Ning, and Anta are ranked among the top three, followed by Adidas and FILA Essence

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