The brand’s Chinese New Year collection coincides with the opening of Chengdu space, as well as a new door in Taipei.
To make sure I preface this discussion I have to share two links.
If you’ve read those links then you know where this post is headed. If you didn’t read them, what they both talk about in detail is how both Adidas and Under Armour will have to spend more money in order to maintain their share of the market in North America and abroad.
What does marketing have to do with these brands and Jordan opening a store in China? Everything. Last year Nike was the worst performing stock (it shouldn’t have been, but Wall Street didn’t seem to grasp the importance of DTC and the lack of importance of Futures for Nike, so the share price dropped in 2016. In 2017 I’ve made the statement that Nike $NKE will grow to the high 50s and possibly hit 65 this year and stay there. I say this at a time where uncertainty is the rule of the day with President Trump and the focus on Made in the USA products and manufacturing. The new administration will undoubtedly affect Nike, but as I’ve said before, Nike is uniquely positioned to offset the worries for its shareholders.
The Chinese Jordan Brand store looks more like an Apple shop than a footwear destination. Nike’s unique approach to customer service and growth in China is something that Adidas and Under Armour can only hope to replicate. For either company to do something similar would require a major infusion of cash which would cut dividends and if you read the above posts, Under Armour tanked when Plank said they would sink more into marketing. Adidas’s CEO said the same thing, but the growth last year was so incredible, that the market didn’t budge when Adidas literally said the same thing as Under Armour.
Jordan Store Chengdu is a move Nike is making to show shareholders that the company has the ability to move on new markets faster and with more expertise than their counterparts.
While there is uncertainty in the US, the future of Nike in the most important market outside of the US is taking shape quickly. How will the competitors respond?
More pics below. Use the source link to read more.