Nike'S Stock Price Has Reached A New High.

For a listed company, it is very particular to choose the auspicious day for listing. Tao Bo international listed on the Hongkong stock exchange in October 10th, following the National Day 70th anniversary Hongkong holiday. Meanwhile, in the past two weeks, Nike has just released its beautiful first quarter of fiscal year 2020, and its share price has reached a record high. On the first day of the international listing, Tao Bo failed to meet expectations. The closing price rose 8.82%.

　 Nike Great China's beautiful financial report or guidelines

It has worked with Nike for twenty years and is the second largest retail partner and customer of Nike. At the same time, the Chinese market is the first quarter of Nike's 2020 fiscal year (the three months ended August 31, 2019), the fastest growing regional market, which undoubtedly played a compass role in the second half of the year.

According to Nike's earnings report, in the three months ending August 31, 2019, Nike's global revenue grew by 7.2% to $10 billion 660 million over the same period, and the revenue in the Greater China region reached 1 billion 679 million dollars, up 22% from the same period last year, far exceeding that of other regional markets in North America, 4% in Europe, 6% in the European, Middle East and African markets, and 6% in the Asia Pacific and Latin American markets. If the exchange factor is excluded, Nike's revenue growth in the Greater China region is as high as 27%.

In the three months ending August 31, 2019, Nike's pre tax profit in the Greater China region reached US $669 million, up 33% from the same period last year, and the growth rate is also far ahead of the rest of the market.

Nike executives said in a conference call, "as I predicted before," Nike is a Chinese brand ", and it turned out to be true. Over the past five years, we have achieved double-digit growth in every quarter of Greater China. " Nike said that as a global key partner of Nike's retail network, Tao Bo international will join hands to further promote the integration of online and online sales models.

It can be said that the Chinese market with sustained and rapid growth in performance has been more and more valued by Nike. The development of the Chinese market requires strong dealers to cooperate with each other, which saves huge investment compared to self run. At the same time, it has been deeply cultivated in the Chinese market for many years, and it is also known as BELLE International's international market.

Currently, China is the largest footwear retailer in China with a market share of 15.9%. Nike and Adidas are the main brands of the company. As of February 28, 2019, sales of main brands accounted for 87.4% of total sales revenue.

In this quarterly report from May 1, 2019 to August 31st, Nike's excellent performance in the Greater China region has undoubtedly provided guidance for the future performance of the company, and has also stabilized the investors' future expectations.

China's sports footwear market is growing rapidly.

The quarterly report of Nike, the world's largest sports brand, reflects the optimistic trend of the global sports shoes market. It also confirms from one side that China is the largest regional market with the fastest growth in the global sports shoes market. Benefiting from China's attention to the national fitness program and the determination of the development goals of a number of sports industry policies, the scale of the national sports industry will reach 3 trillion yuan by 2020, and 2025 is expected to exceed RMB 5 trillion yuan.

It can be said that under the trend of the rapid development of the global sports industry, the trend of social development that people attach more importance to and the policy support for China's sports industry, these three trends have promoted China's sports industry to go forward at a very fast pace.

According to Sullivan's survey report, the consumption of sports related products and sports shoes in China in 2014 was 277 billion 700 million yuan, which reached 405 billion yuan in 2018, and the compound growth rate reached 9.9% in four years. It is expected to reach 610 billion 100 million yuan by 2023, and the compound growth rate in five years will reach 8.5%.

China's sports shoes and clothing market is the highest proportion of the sports related products market in China, and its growth rate is faster than that of the overall market. Its consumption in 2014 was 145 billion 500 million yuan, increased to 235 billion 700 million yuan in 2018, and the compound growth rate in four years was 12.8%. It is expected to reach 392 billion 300 million yuan in 2023, and the compound growth rate in five years will reach 10.7%. Its share of total consumption in China's sports related products market also increased from 52.4% in 2014 to 58.2% in 2018, and it is expected to reach 64.3% by 2023.

Driven by the growth trend of the three major industries, Tao Bo international, as China's biggest sports shoe and clothing retailer, will receive stable support for its long-term growth.

　　 The advantage of high-end products is more obvious.

In the past four years, we have found that there are some new changes in the huge market of China's sports shoes market, and the high-end products that have been recognized by the market have a faster growth rate.

According to ECdateaway data, the sales growth of Chinese sports shoes in the first eight months from 2017 to 2019 was 24.8%, 20.1% and 34.5%, respectively. From January to April 2019, sales of Chinese sports shoes increased significantly, but in the five or six or 73 months, obvious growth rate was slowing down.

The same change is more evident in the sales of sports shoes. In 2019, sales of sports shoes in the five or six and 73 months were 34 million 28 thousand and 100 pairs, compared with 33 million 698 thousand and 800 pairs in the same period in 2018, the growth rate was less than 1%.

But in the domestic market, the change of the average selling price of sports shoes has seen another scene. Compared with the slow increase in the average selling price of sports shoes in 2017 and 2018, the average sales price of sports shoes in the first eight months of 2019 increased significantly faster than that in 2017 and 2018, even in the five or six and 73 months when sales growth was almost stagnant. In this way, sales of sports shoes in 2019 increased by 10.6% over the past five or six months and 73 months, when sales growth was almost stagnant.

After entering 2019, the trend of consumption upgrading in China's sports shoes market is obvious. In order to get a higher wear experience, consumers are willing to pay higher purchase prices for sports shoes. This trend is still maintained even in the months when sales growth is almost stagnant.

Excellent brand recognition, fashion design, comfortable wearing experience and functional sports shoes are being favored by more and more consumers. This constitutes the insurmountable moat in the domestic sports footwear industry.

According to public information released by Tao Bo international, the company has nine other partners besides Nike and Adidas's two main brands, including Puma, CONVERSE, Arthur, ghosts, Skech, Reebok, and Wei Fu Group's brand (Vans, The North Face, Timberland). These top international brands cover two major areas of sports and sports and fashion. Among them, high-end positioning is more in line with consumer preferences and is also in line with the general direction of consumption upgrading.

According to NPD Group's report on the footwear market in the United States for the twelve months ended August 2019, the fastest growing category was sports shoes, and its sales grew by 7% year-on-year. Footwear sales, including high-heeled shoes, fell by 5% compared with the same period last year, while sales of professional sports shoes dropped by 7%. This will be worth learning from the domestic shoe market as a reference for future development. The brand camps will also benefit from many international brands of fashion sports.