After reading Tristan’s blog post on Nike’s sales performance in China, I was shocked with what I learnt. I would’ve thought that China was one of Nike’s top markets, yet its sales consistently decrease each quarter.
China is filled with fashion minded people – Shanghai and Hong Kong are two of the world’s leading fashion cities. Also, I know many Chinese and other people of Asian ethnicities who keep up with the latest fashion trends. One thing they all have in common is their love for Nike shoes and apparel. This would lead me to believe that Nike does well in China, but this isn’t the case.
As Tristan pointed out, Nike doesn’t sell well in China because they focus on minor sports, active lifestyles are seen as only for the rich, and academics take priority over athletics.
In the last year, Nike has been able to make a lot of their footwear and apparel appeal to both consumers who are fashion conscious and those who are looking for a performance athletic boost. This strategy, along with partnering with the government to develop school athletic programs, will help Nike’s long-term goal of gaining a large market share in China.