Nike’s official website has not yet withdrawn its statement banning Xinjiang cotton. This move instantly stirred up China. The market structure of sporting goods.
Absurd! (Huang Miu)
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Nike’s market value evaporated by 46.3 billion overnight
On March 25, Adidas fell more than 6.49% to 261.55 euros on the Frankfurt Exchange in Germany. Its single-day circulation market value evaporated by about 3.5 billion euros, or about 27 billion. RMB.
With the rebound in U.S. stocks last night, U.S. stock market Nike closed down 3.39% at $128.64, with its single-day circulating market value evaporating approximately $7.1 billion, or approximately 46.3 billion yuan.
On the 25th, H&M’s share price on the Stockholm Stock Exchange fell by 1.84%, and its single-day circulating market value evaporated by approximately 6.3 billion Swedish krona, or approximately 4.8 billion. Yuan Yuan.
On the same day, many foreign companies were found to have made statements about “cutting off” Xinjiang cotton in the past two years, including BCI members Burberry, Adidas, Nike, and New Balance , UNIQLO, CONVERSE, etc.
Among them, Tan Songyun and Wang Yibo terminated their cooperation with Nike.
On the same day, CCTV News commented: Following H&M, Nike, Adidas, etc. were also “found out” as having boycotted Xinjiang cotton. Once it touches China’s bottom line, it will no longer be called Nike, but it will be conquered! You had a great time stigmatizing Xinjiang, but now you are pretending to be deaf and dumb? Issues of principle cannot be challenged, and core concerns must be faced head-on. Chinese cotton is very soft, and Chinese people are very hard, and we will never let unscrupulous companies “play” randomly!
A piece of cotton may shake Nike’s dominance.
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43 billion in gold a year, Nike’s China dividend
” Pick up the bowl to eat, put down the bowl and curse.”
What makes the public angry is that the Chinese market is the biggest driver of Nike’s performance. In the last fiscal year, it operated in Greater China With a revenue of 6.679 billion US dollars and a profit of 43 billion yuan a year, and rapid growth, it participated in the boycott movement.
In the 1980s, Nike officially entered mainland China. Since 2003, it has won the first place in the sporting goods market share. It has occupied a dominant position for many years and fully enjoys The dividends of China’s 40 years of rapid development.
Nike’s supply chain situation in mainland China, Source: Nike official website
By 2020, Nike’s market share in China will be approximately 25.6%, firmly controlling the mid-to-high-end market, surpassing Adidas’ 17.4% , and suppressed a number of domestic brands. Local Anta Sports and Li Ning had market shares of 15.4% and 6.7% respectively in 2020. In terms of growth rate, Nike also maintains its lead.
Nike’s size is beyond the reach of other brands. For a complete fiscal year, Nike’s annual revenue exceeds 240 billion yuan, nearly 100 billion yuan higher than Adidas, and also behind tens of billions of Anta and Li Ning. Its total market value is also firmly above the level of 200 billion US dollars. .
Nike can make a lot of money globally, largely thanks to the Chinese people.
The North American region of Base Camp is the largest source of revenue, contributing about 40% of revenue. In recent years, its performance has continued to decline, especially since the beginning of 2020, the epidemic has been violent. Impacting the retail industry, the North American region, where the company relies most heavily, relies heavily on offline sales. For nearly two months, a large number of dealers had nothing to do. From March to May last year, revenue in the North American market plummeted 46% year-on-year.
In stark contrast, Greater China once maintained a record of double-digit growth for 22 consecutive quarters and strongly supported Nike’s sales during the epidemic. Global performance.
In 2020, when inventory was severely overstocked, the management placed more hopes on China. The company quietly offered discounts in China to clear inventory. The discount on the official website was once as low as 50% off. A change from the previous high profile.
Just a few days before the incident broke out, Nike announced its latest quarterly results (as of February 28, 2021). Global sales increased slightly by 3% year-on-year. %, which is approximately RMB 68 billion. The performance was mediocre and fell short of market expectations.
The only bright spot is Greater China. For the second consecutive quarter, revenue exceeded US$2 billion, a year-on-year increase of 51%. It is also the only positive growth region in the world. The proportion of revenue contributed increased to 22%. The growth data of Greater China is listed in the first item. Management specifically pointed out that the revenue in this fiscal quarter benefited from the strong growth of this market.
Nike 2021 fiscal year Q3 financial report, Greater China The district is the only market with rapid growth
John Donahoe, who took over as Nike CEO last year, also mentioned it in many earnings calls China. In January 2020, in his first week as Nike CEO, he first chose China for his foreign inspection. At that time, the epidemic wasA total of 445 stores have been opened in 146 cities in the region.
Magnus Olsson, general manager of H&M Greater China, once said: “The increasingly mature Chinese consumers are more concerned about brand values, humanization of production processes, and sustainability of raw materials. Put forward higher and higher requirements. In China, where digitalization is developing in depth, we need to continue to accelerate transformation.”
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Anta announced its withdrawal from BCI
Sports brand Anta Sports issued an announcement on the 24th stating that it has noticed the recent statement issued by BCI and is seriously concerned about the matter. It is initiating relevant procedures to withdraw from Swiss Better Cotton. Development Institute (BCI). Anta stated that it has been purchasing and using cotton produced in China’s cotton-producing areas, including Xinjiang cotton, and will continue to purchase and use Chinese cotton in the future.
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China has clarified the facts many times
The Ministry of Foreign Affairs has clarified the facts on multiple occasions Repeatedly clarify facts and truth. Last Thursday (March 18), Foreign Ministry spokesperson Zhao Lijian stated that the so-called “human rights violations” such as “forced labor” and “forced sterilization” in Xinjiang were deliberately fabricated and spread by a few so-called scholars and institutions with ulterior motives, and violated justice. Conscience, the Chinese people are strongly indignant. French writer Vivas also clearly exposed the conspiracy of these people who have never been to Xinjiang to create fake news in his book “The End of Uyghur Fake News”. It is recommended that relevant people read this book and carefully understand what the facts are.
Vivas previously accepted an exclusive interview with a reporter from Nandu. He, who has made objective and fair reports on China many times, also pointed out that after two trips to China’s Xinjiang, he found that Xinjiang was different from what was described by French media and politicians. When he saw the lies becoming more “frequent” and “exaggerated” by some sections of the media, he decided to join the “battle” by writing this book.
Last Thursday (March 18), the Xinjiang Uyghur Autonomous Region held its fifth press conference on Xinjiang-related issues in Beijing. Xu Guixiang, deputy director of the Propaganda Department of the Party Committee of the Xinjiang Uygur Autonomous Region, said in response to the so-called “Xinjiang-related report” concocted by German scholar Adrian Zenz that is full of lies and false information:
Zheng Guoen The so-called “Forced Labor Practices in Xinjiang Cotton Production: Labor Transfer and Encouraging “Lazy” Ethnic Groups to Pick Cotton” states: “Through the state’s mandatory labor transfer and poverty alleviation plans, hundreds of thousands of ethnic minority workers in Xinjiang have Forced to pick cotton by hand” “70% of cotton in Xinjiang still relies on manual picking” “Cotton picking in Xinjiang will continue to rely heavily on manpower” “Labor transfer includes forced mobilization through local work teams, and flower pickers are divided into groups to supervise transfers, and labor under the supervision of government officials and police (at least in some cases).” This is a complete attack and smear campaign.
Here, two facts are very important. First, Xinjiang’s cotton production has already been highly mechanized. Even during the busy picking season, there is no need for a large number of “cotton pickers.” According to 2020 data released by the Xinjiang Agriculture Department, the mechanical picking rate of cotton in Xinjiang has reached 69.83%, of which 95% of cotton in northern Xinjiang is picked mechanically. Zheng Guoen’s statement that 70% of Xinjiang’s cotton is picked manually is seriously inconsistent with the facts.
Second, from the past to the present, forced mobilization for cotton picking has never existed in Xinjiang, and there is no need at all. In the past few years, every autumn when cotton matured, many migrant workers from Henan, Sichuan and other places took trains to Xinjiang to pick cotton. Although cotton picking is hard work, because the growers are responsible for food and housing, and their income is high, some ethnic minority people, including those from southern Xinjiang, have also voluntarily joined in the cotton picking work. On the basis of equality, voluntariness and consensus through consultation, these cotton pickers sign labor contracts with cotton growers and receive corresponding remuneration. It is understood that during the nearly 50-day cotton picking season, each cotton picker can earn tens of thousands of yuan on average. Why wouldn’t people want to earn so much money in such a short period of time? As for the decline in the number of Han cotton pickers in recent years, this is mainly due to the continuous increase in the income of rural laborers in the mainland and the continuous decrease in the number of people going to Xinjiang to pick cotton. This has nothing to do with the “government forcing local labor force” imagined by Zheng Guoen.
Cotton farmer Mijiti in Kuqa City, Aksu Prefecture, Xinjiang ·Yimiti said at the above press conference:
My family has 300 acres of land, mainly growing cotton, and my annual income is about 150,000 yuan.
In the past few years, every time it was cotton picking season and our family was short of manpower, we would spend money to hire cotton pickers from Xinjiang and the mainland for help. Now we use machines to pick cotton, which is cheaper and more efficient. Now my cotton is picked in less than a day, and we don’t need so many people to pick it by hand.
Recently, I have heard some people outside the country say that we in Xinjiang force farmers to grow and pick cotton. This is sheer nonsense! We grow our own land, harvest our own cotton, and earn our own money. How can we call it forced labor? We ask cotton pickers to pick cotton. They can earn more than 10,000 yuan in just over two months. Everyone is rushing to pick cotton. Is this called forced labor? Those who spread rumors are not trying to protect our rights at all, but to let our farmers’ cotton rot in the fields. They want to destroy our farmers’ jobs, leaving us without work and food, and returning to our previous poverty. We will definitely not agree to the date!
�, it is not to protect our rights at all, but to let our farmers’ cotton rot in the fields. They want to destroy our farmers’ jobs, leaving us without work and food, and returning to the poor days of the past. Definitely not agree!
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