Nike Performance Decadent Global Layoffs 2%

"The most valuable thing in the world

The title of "brand" has not yet been widely known. In the past year, the poor performance and poor performance of the stock market have taken the lead.

From dream to reality.

In the past week, Nike has offered a reorganization plan called "Consumer Direct Offense", and the two big reform intentions of Amazon group, which are still in the "swallowing business", have caused the double attention of the market and the industry.

The pressure of competitors is still on the decline of the capital market. If Amazon's "throw in the arms" is regarded as a short-term strategy, in order to get closer to consumers and consume inventory, Nike's "Consumer Direct Offense" reorganization plan is a long-term strategy. It is aimed at the reform and reorganization of the business structure that the company has at present unreasonable situation.

One of the priorities of the plan is layoffs. Now Nike plans to lay off 2% of the world. According to Nike's latest statistics, its total number of employees is 70700, 2% or 1400 people. In addition, Nike will also cut down 25% of the sports shoes styles and focus on making explosive loans. The core of the plan is to expand the network sales channels, and closer to the target users of 80 and 90's.

According to the restructuring plan of Nike, the company plans to reduce the business department from 6 to 4. In the establishment of the core city, Nike will focus its attention on 12 key cities including New York, London, Beijing and Shanghai. It is estimated that 80% of the sales will come from these cities by 2020.

But after the news was released, the capital market did not seem to buy it. Nike shares fell 3.22%, and the investment banking institutions also downgraded their shares from "overweight" to "neutral".

The report was written by Matthew Boss, an analyst at JP Morgan chase. He spent the past few years watching the Nike stock market. He had maintained the Nike's "overweight" rating for at least four and a half years. These factors also made the report in the Boss.

Much attention has been paid to it.

Matthew Bos reckons that the sales performance of Nike in the North American market is likely to be worse, because the challenging retail environment has brought about the consequences of the closing of stores and the reduction of shelf space of Nike products.

In addition, Bosse pointed out that the recent consumer preferences are turning from performance to lifestyle, thereby reducing the entry threshold and increasing the competitive pressure faced by Nike in the field of sports products retailing.

And this worry is not groundless. For rival Adidas, which is slightly higher than Nike's pricing and positioning, it can be seen that in 2016, Adidas recorded a record 19 billion 291 million euros, up 14% compared with the same period last year, and net operating profit of continuing business was 1 billion 19 million euros, an increase of 41.5% compared with the same period last year. In 2016, Adidas achieved a 28% increase of 28% over the same period, and its revenue reached 2 billion 944 million euros, and its growth rate was far beyond Nike.

In addition to Adidas, such as Under Armour, Skechers, Puma and other brands also showed a good momentum, followed by tight pursuit, Nike's current market competition situation can be described as a strong enemy around, although today Nike is still the leading brand of sports brand in the overall share, but the market rotation, changing rapidly, how the future market share will be carved up is hard to say.

In the future, the agency of the investment banking company was confused, and Goldman Sachs revealed to the US market media on Wednesday that Nike is finally negotiating with Amazon, which is about to sell direct on the Amazon website.

At present, Nike, which always pays attention to the direct selling channel, does not have a direct sales window in Amazon. Only the channels of unauthorized distributors, this shortcoming has made the electronic business market mixed up with counterfeit goods and counterfeit goods. After cooperation with Amazon, I believe this situation can be improved.

According to the world clothing and shoe net, Nike's direct selling on Amazon may enable it to add an additional $300 million -5 billion in the US market.

The CEO Josh Luber of StockX, a well-known footwear data publisher, thinks that the rapid decline of Nike and Jordan Brand mainly stems from two aspects. The external reason is mainly due to the fashion trend. The preference of young customers is changed from the early normal style basketball shoes to the lightweight style shoes, such as Adidas Originals Stan Smith series that has been on the fire for a while. The main reason is that the accumulated output of the series products is large, and the stock of stockpiling is very large.

In addition, the opening of Amazon channels has made some Nike channel agents confused.

Along with the rise of the Internet business channel, including Belle, which is also a big agent in China in the past two years, it is also taking the channel of the Internet business as the main sales channel. After the emergence of this strong channel of Amazon, whether it will continue to "swallow up" the share of this part will make them worry.

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"In the early years, Nike was on behalf of the factory and the agent mode. In the Chinese market, it was fighting in the West. In China, it was like the number of large agents such as BELLE opened in the early years, and even more than half were shops selling Nike and Adidas products.

In the past two years, the adjustment of Nike strategy has increased the number of direct outlets and reduced the number of third party dealers, which has been a great blow to all of us. This time we blocked the network channel again, believing that there will be a lot of difficulties for a number of agents.

Wang Bo, who was responsible for marketing work in China shoe king Belle before 2013, analyzed to reporters that in his view, the shoe and clothing enterprises in China experienced a cold spell crisis for a long time in the past. A large part of the reason was that they were in the lower reaches of the industry production and marketing chain.

Image damage, poor marketing and the loss of Chinese market, the serious Nike's dominance in sports brand has been brilliant for a while. Many people think that this position is almost impossible to shake.

Take the market data in 2015 as an example, its Jordan Brand has taken up 96% of the sales of the sports shoes resale market, and at that time Adidas accounted for less than 1% of the market share.

But since 2015, the progress of Nike and Jordan Brand has stopped abruptly.

Data show that nearly three fiscal year net profit chart shows that the gross profit margin of Nike also showed an overall downward trend. In the fourth quarter of 2016, the net profit for the first time even appeared negative growth.

In the first quarter of fiscal year 2017, its revenues amounted to US $9 billion 60 million, an increase of 8% over the same period last year.

Among them, Greater China is still the largest market for Nike.

However, in the first quarter of fiscal year 2017, the revenue contributed by the Greater China region increased by 15% compared to the same period last year, half of last year, and the growth rate slowed down significantly.

The most noteworthy point in the data is the futures demand for future demand. At present, the growth rate of Nike orders has fallen for three consecutive quarters.

The order data of its 2017 first quarter earnings showed that global orders from September 2017 to January 2018 were US $12 billion 300 million, an increase of 7% over the same period last year, but the growth rate was far below the 17% of the same period last year.

Such data means a slowdown in the growth of Nike futures orders, which means retailers are stockpiling.

If retail terminal products fail to digest in time, it will greatly affect investors' confidence in their next quarter growth.

In addition, if we look at the Chinese market alone, Nike will not only fail to perform well, but its performance will be much worse than before.

On CCTV's "3. 15 party" this year, Nike was exposed to Hyperdunk 2008 FTB basketball shoes sold in the Chinese market. It did not embed zoom air air cushion as propaganda. Although Nike later explained that it was a publicity blunder, and refund and compensation for shoes sold, it could not calm down the feeling of "differentiated treatment" and "no respect" for Chinese consumers.

As for the decline of Nike today, the response of the capital market is very obvious. In 2016, Nike went through 12 consecutive months, and the share price fell more than 30%. Investors' confidence in the Nike market performance was almost exhausted.

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