China Economic Weekly-Economic Network News (Reporter Hou Jun) In the summer of 2022, the ranking of global sports brands is undergoing subtle changes.
html On June 27, Nike, which has always been ranked No. 1 in the world's sports brands, announced its fourth quarter and full-year financial reports for fiscal year 2022 as of May 31 this year. Nike's full-year revenue for fiscal year 2022 reached US$46.7 billion, a year-on-year increase 5%, excluding the impact of exchange rate changes, the year-on-year increase was 6%.
However, Nike Greater China financial report data shows that in the third fiscal quarter as of February 28, 2022, Nike Greater China revenue fell 5.2% year-on-year to US$2.16 billion. In the last fiscal quarter, Nike's sales revenue in Greater China also fell 20% to US$1.844 billion. Focusing on categories in Greater China, footwear revenue was US$1.178 billion, a year-on-year decrease of 12%; apparel revenue was US$350 million, a year-on-year decrease of 40%; equipment revenue was US$33 million, a year-on-year decrease of 28%. Nike said that the decline in performance in Greater China was mainly due to the increase in inventory, logistics and transportation costs caused by the epidemic.
In response to this poor report card, the capital market reacted immediately. When US stocks closed on June 28, Nike's stock price plummeted 7%, and its market value evaporated by US$12 billion in one day, or approximately RMB 80.5 billion. At the same time, Nike's stock price fell to $102.48 per share during the session, setting a new low since August 2020.
Public opinion believes that the reason why Nike is no longer popular is that international sports brands such as Nike will face more intense market competition in the Chinese market in the future. Just like in the past, if you just win, you can earn a lot of money casually. Gone forever.
html On July 11, Anta released its second quarter and half-year operating data. Among them, in the second quarter alone, the retail sales of Anta's main brands, FILA, and other brands (Descente, Colon, etc.) respectively recorded mid-single-digit declines, high-single-digit declines, and 20% to 25% growth year-on-year.ANTA explained that in the first half of 2022, ANTA Group followed the guidelines and requirements of local governments and suspended the operations of physical stores in specific areas. As a result, the offline retail business suffered adverse conditions such as a significant decrease in passenger flow and weakened consumption intention. Despite this, Anta Group has strategically expanded the proportion of product sales on its e-commerce platform, offsetting the losses caused by the suspension of operations of some physical stores.
Just when Nike and Anta are stuck in a growth bottleneck, the news that the market value of Canadian sportswear brand lululemon has surpassed that of German sportswear giant Adidas has attracted attention.
According to Futu Niuniu app data, as of the latest trading day (16:00 on July 11, Eastern Time), Adidas (ADDYY.US) stock price closed at US$81.8 per share, with a total market value of approximately US$31.428 billion; lululemon ( LULU.US) closed at US$281.76 per share, with a total market value of approximately US$35.934 billion. This means that lululemon has become the second largest sportswear group in the world, second only to Nike, which has a market value of nearly US$170 billion. In fiscal year 2021, lululemon's sales surged 42% year-on-year to US$6.25 billion, exceeding the 6 billion mark for the first time.
So, how long can Lululemon, the "popular fried chicken", stay popular?
has anchored the yoga category from the beginning, planted seeds on social media, used its first-mover advantage to develop rapidly from the U.S. market, and then achieved high growth in China. Data shows that since 2019, China has led the expansion of Lululemon’s global stores, and even in 2021 More than 60% of the newly opened stores are from China. "This year we plan to open 40 new stores around the world, most of which will be established in mainland China, and the growth plan remains on track." Lululemon management said in a conference call in early June this year.
Are global sports brands going to be re-ordered? Is it easy to tell a new growth story by betting on China? We'll see!
Photo taken by journalist Hou Jun
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