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    A Number Of Chinese Enterprises Halted Cooperation With NBA, Nike Llying Gun Domestic Brand Opportunity.

    2019/10/10 11:58:00 22

    Nike

    NBA Houston Rockets general manager, Murray, has published a series of reports on improper representation in Hong Kong for several days. After the CCTV suspended the NBA event broadcast arrangement and the Tencent sports suspended the NBA pre season competition, many Chinese companies that had previously worked with NBA, NBA China and Houston Rockets have already suspended or suspended cooperation.

    Murray's "Lei Yan Lei" not only makes NBA overshadowed by commercialization in China, but on the other hand, foreign sports brands such as Nike, which have been marketing NBA in China for many years, will also lie in guns. "Securities Daily" reporter saw on micro-blog, many netizens said, "it is time to change the domestic shoes, Lining, Anta, PEAK are all good, but also cheap", "this year's double eleven does not buy Nike, buy Lining"...

    By the end of October 9th, Lining rose 3.94% in the Hong Kong stock market.

    NBA's future in Chinese business is uncertain.

    According to the statistics of the Securities Daily, as at 5 p.m. on October 9th, at least, there are 21 Chinese companies, including Dongfeng Nissan, Anta sports, Tencent sports, Dicos, Rui Xing coffee, Kangshifu ice tea, Changhong, MeiLing, vivo, Ctrip, hi car, Mengniu, Wu Zun, Xiao win technology, Lining, Pudong Development Bank, you, I, PEAK, hero mutual entertainment and Linglong tires, and so on, 21 Chinese enterprises have announced their cooperation with NBA, NBA China or the Rockets.

    As the largest basketball business alliance in the world, NBA opened the door to China in the late 80s of last century. After more than 30 years, China has gradually developed into its largest overseas market. Statistics show that the annual income of NBA in the Chinese market is about 1 billion 200 million dollars, which accounts for more than 10% of its total revenue.

    A few days ago, in order to get the exclusive rights to broadcast digital media in the next 5 years, Tencent sports has just renewed its contract with NBA at a price of 1 billion 500 million dollars. However, just as all sides believe that NBA will usher in a new round of gold development in the Chinese market, Mr Morley's improper remarks almost stopped NBA business cooperation in China, and the future is uncertain.

    "The Moray incident has a very big impact on the commercialization of NBA in China. If NBA is not well controlled, it will be more difficult to develop further." In October 9th, AI media consulting CEO and chief analyst Zhang Yi said in an interview with the Securities Daily reporter: "because people involved in the national sentiment, enterprises are very sensitive, whether it is Chinese enterprises or overseas enterprises, will avoid negative word-of-mouth in this respect, so for NBA, including sponsors, will face great losses."

    Is the opportunity for China's sports brand coming?

    Mr Morley's improper remarks will not only usher in the dark business of NBA's own commercialization in China, but will also drag on Nike, its biggest sporting goods partner.

    Over the years, it has been the sport of NBA, which has attracted much attention from the Chinese people, to carry out brand marketing and carrying goods. Nike has opened up the Chinese market. In recent years, Nike has increasingly relied on the Chinese market.

    According to the earnings report that Nike just released at the end of September, in the first quarter of fiscal year 2020 as of August 31st, Nike achieved a total revenue of $10 billion 700 million, of which the Greater China region achieved a revenue of 1 billion 680 million yuan, up 22% over the same period last year. Nike chief executive MarkParker also said that over the past five years, Nike has maintained a two digit percentage increase in every quarter of the Greater China region. It even claims that Nike is a Chinese brand facing the Chinese market, and the performance report is constantly proving this.

    Therefore, in many analysts' view, if NBA loses the Chinese market, the biggest injury is probably its biggest gold Nike. Without the promotion of NBA, Nike will be affected in the Chinese market, and Lining will benefit from sponsoring CBA. This will also provide an opportunity for the development of domestic sports shoes and clothing brands.

    Zhang also said: "Lining and Anta have made a clear and timely attitude in this Morey incident. For them, this is obviously a better opportunity to win more users, and also a good marketing opportunity for the positive energy of the corporate brand."

    Source: Securities Daily, author: Xie Lan

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