Nike Attack: Only The First "I"

The market value of NIKE (NKE.US) is 100 billion. It is the largest sporting goods company in the world. As of November 20, 2018, the market value of NIKE was 115 billion 200 million US dollars, which is 2.5 times that of Adidas and comparable to that of the world's largest luxury group LVMH. The main business of NIKE is design, research and development, sales of sports shoes and clothing and equipment. The production of all products of the company is outsourced by third parties, and almost all the production of shoes and clothing is outside the United States. FY2018 company's revenue was 36 billion 400 million US dollars, up from +6%. Gross profit margin was 44%, a decrease of 1ppt compared with the same period last year; net profit margin was 5%, a decrease of 7ppt compared with the same period last year. Trump's tax reform bill is the main reason for the decline in net profit margin. This report starts with the difficulties and challenges faced by NIKE at different stages of development and its countermeasures, focusing on two aspects: 1.. How can NIKE develop from an Oregon local enterprise into a global multinational enterprise; and 2., in the process of its own growth, how does the company adjust its strategy to surpass other similar situations to achieve everlasting success.

NIKE's innovative and forward-looking strategy helps its development, and its development path can be roughly divided into four stages: (1) stage 1 (1975-1982 years): the origin of Onitsuka, the birth and listing of NIKE; (2) stage two (1982-1992 years): breakthrough in product innovation, R & D and overseas expansion; (3) stage three (1992-2012 years): diversification of brand portfolio and global market expansion, facing difficulties and climbing to the top; (4) stage four (2013 to present): the strategy of steady development is the main task, but Trump's tax reform act is the key factor for the sudden decline of net profit in 2018.

Looking at the growth course of NIKE, forward-looking strategic vision is the key to its success. In summary, the success of NIKE is mainly due to its combined sales channels, continuous R & D investment, expanding market scope and continuously improving business capabilities. The 70-80 years of twentieth Century were the most difficult ten years and the most resilient ten years for NIKE. The company's ability to fight adequately embodies the decision-making wisdom of the management: (1) attach importance to R & D and innovation in science and technology, develop shock absorbing soles and air cushion soles; (2) overseas market expansion, from the United States as the core to neighboring countries and regions such as Europe and Japan, and constantly expand its sales radius; (3) start marketing strategies such as celebrity endorsement and team sponsorship to expand its brand awareness and influence; (4) take precautions, develop new products, products from footwear to clothing, and then to sports equipment, product categories and series gradually increase. NIKE shows us a multinational company in the global market expansion process, in its own embarrassment and external environment difficult, its strong compression capacity and tenacity "heart". As an endogenous driving force of the company, it constantly encourages its growth and development, providing guidance for enterprises in a similar situation in China.

1, NIKE (Nike): the world's first sports brand enterprise

1.1, the market value of the sword is 100 billion US dollars, which is comparable to the world's largest luxury group.

In 1967, the predecessor of NIKE was founded by Blue Ribbon Sort (blue ribbon) sports company; in 1972, the NIKE company was officially registered. In 1980, NIKE went public and completed A and B shares financing. At present, NIKE is the largest sports Brand Company in the world. Its market value is $115 billion 200 million (up to November 20, 2018), and its market value is 2.5 times that of Brand Company, Adidas, the second largest sport in the world, and is comparable with the world's largest luxury brand group LVMH (up to November 20, 2018, LVMH's market value is US $301 billion 100 million). NIKE is not only a sports brand, its influence is spread to clothing, fashion, culture and other industries.

1.2, focus on sports, the scale of revenue growth steadily.

The main business of NIKE is to design, develop and sell athletic footwear, equipment and accessories. The production of all the products of the company is outsourced by third parties, and almost all shoes and garments are located outside the United States, and some sports equipment are produced in the United States.

The scope of business has been purely focused on sports. Since its listing in 1980, the main business scope of NIKE has been focused on sports related fields, covering three main components: footwear, equipment and accessories. At present, the main brands of NIKE include: Nike main brand, Converse, Air Jordon, Hurley. It also involves two major markets for adults and children.

Since the listing, the scale of revenue has steadily increased. According to our collected data analysis, since the listing in 1980, the company's revenue and gross profit have increased year by year, and its gross / net profit margin level has changed from volatility to stabilization. In the past ten years, the company's profit growth has steadily stabilized.

The development of NIKE provides a reference for China's consumer goods and manufacturing companies to find new ways for economic structural differentiation. This report focuses on: (1) how NIKE developed from a small rural workshop in Oregon to a leading brand of global sports brand; (2) how NIKE adjusted its strategy in the face of major changes in the economic environment to surpass other companies in similar situations and achieve everlasting success.

2, NIKE development path and stage: either run or die.

In 1967, Knight and Bowerman jointly registered Blue Ribbon Sort (blue ribbon) sports company, that is, the predecessor of NIKE; in 1972, the NIKE company was formally established. After its listing in 1980, the company's revenue scale was close to US $300 million. We divide the history of the company into four stages based on the age division.

2.1 or 1972-1982 years: the origin of Onitsuka and the birth and listing of NIKE

Consignment of Japanese Onitsuka (Gui Zhonghu) sports shoes

In the first eight years of entrepreneurship, NIKE brands and companies did not exist. Initially, the company's name is Blue Ribbon Sports (BRS), that is, the blue ribbon sports company. And blue ribbon sports has only one business, that is, the sale of Japanese sports shoes Onitsuka (Gui Zhonghu) in the US market.

Parting with Onitsuka (Gui Zhonghu), NIKE was born.

After 8 years of cooperation with Onitsuka (Gui Zhonghu), Knight decided to establish its own brand and company due to differences in terms of renewal, sales style and business philosophy, and refused to be bought. CarolynDavidson, who has been working as a brochure and posters for the company, has designed logo for the new company and has paid the design fee of $35 for Davidson. In addition, Knight takes the name of Nike, the Greek goddess of victory, as the name of the company. After that, Knight began looking for factories to produce sports shoes. Since then, NIKE has been born.

The product line is transferred from Japan to Korea and Taiwan, China.

In the 70s, almost all the main production departments of NIKE were located in Japan. But since 1972, factories have gradually moved to South Korea and Taiwan, China. The main reasons are: on the one hand, the exchange rate of the US and Japan has started to fluctuate; on the other hand, due to the rising cost of labor management in Japan, the company has been in crisis. In 70s, Taiwan had more factories and lower labor force than Japan. On the one hand, it could not only guarantee the cost of the company, but also guarantee the output and quality of the company.

Listed in 1980: NIKE turning point of fortune

From the establishment time, Nike was founded 44 years later than Adidas. In the early days of the 60-70 century, Nike formed clear strategic thinking, focusing on establishing the best mode of overseas production and operation, providing new design and style for foundry manufacturers and maintaining quality standards.

Cash flow is especially important for physical enterprises, such as shoes and clothing enterprises. The main reason is that enterprises need to pay timely payments to upstream suppliers, foundries, and retail and department stores. Therefore, cash flow is particularly important for entities. In addition, with the gradual expansion of the scale of the company, especially the consumer preferences of sports brands are unpredictable, enterprises often need to face the backlog of inventory problems and so on.

Whether in the predecessor BRS (blue ribbon sports) company stage or after the birth of NIKE, the biggest problem facing the company is cash flow and cash flow difficulties. Because of the difficulty of bank loans, Knight had to choose to raise funds through public listing. In 1980, NIKE announced its listing, issuing 20 million shares of A shares and 30 million shares of B shares.

Since its listing in 1981, NIKE has gradually broken through, and the flow of cash is good. From the product category, the product category extends from footwear to clothing, and extends the category of shoes, including running shoes, tennis shoes, nail shoes, and other leisure footwear. At the same time, it not only focuses on the adult market, but also expands the product market to the field of children.

Post marketing Restructuring: building a new organizational structure with R & D department as the core

In 1982, NIKE purchased 87 thousand square feet of land as a product development and testing center, and Exeter CorporateTechnology Center. The R & D center consists of four departments: Advanced ConceptsDepartment, Chemistry and Materials Research Department, Sport Research Laboratory and, and Research. The coordination and cooperation among departments enables NIKE to have continuous leading new products.

2.2 or 1983-1992 years: breakthrough in product innovation, R & D and overseas expansion

In 1980s, NIKE was founded in second ten years, and the first ten years after the listing. In the 1982-1992 year, the gross profit margin of the company was about 32.6%, the net profit margin was about 6.7%, and the FY1992 NIKE revenue was close to 3 billion 500 million US dollars. By sorting out and summarizing the company's 80s data, we found that in 1985 and 1987, the company's operating income and profits declined.

The competitive pressure of inventory in 1985 and 1987 is a fatal factor for the slowdown of performance.

The decline in NIKE footwear sales in 1985 led to a decline in footwear revenue. Total footwear revenue accounted for 78% of the company's revenue, down 11% from the same period last year, mainly due to the decline in demand for sports shoes by consumers. We found that footwear products accounted for a relatively large decline in the sales of footwear products, which fell by about 72% compared to the same period last year. The income of track and field shoes decreased by 10% compared with the same period last year, while tennis shoes decreased by 7% compared with the same period last year. And because running shoes have always been the main category of footwear, its percentage of domestic footwear income has dropped from 38% in 1984 to 29% in 1985. Although the income growth of casual shoes and children's shoes has increased, it can not compensate for the loss of running shoes' income.

In 80s, aerobic exercise gradually emerged, and the young people who pursued the trend became the main consumer of sports shoes and clothing. NIKE did not catch the market transformation brought by this trend in time, and led to the rapid rise of the stock scale. Although the company made changes in the system in 1987, sales of footwear products dominated by AJ basketball shoes declined again. The sale of new products was insufficient to compensate for the adverse effects of the decline in classic products, resulting in a sharp decline in revenue and net profit in those years.

In addition, from gross / net profit margins, the sluggish inventory of Companies in 1985 and 1987 led to a decline in gross profit margins and a decline in gross profit margins, which in turn led to a decline in net profit margins. Although the overall development of the industry was on the upward trend in 80s, NIKE suffered fierce competition in the market. In the process of development, NIKE adjusted product strategy and Jew back attack, and established the keynote of new product development and design in the future.

Enhance the technological research and development ability of soles, first Nike Air air cushion shoes.

In response to the overall decline in footwear sales in 1985, especially in running shoes products, NIKE launched NIKE Air running shoes in 1986 and more subdivision sports shoes to meet the different needs of consumers through R & D in 1986. As a result of the company's R & D investment and category innovation, the sales volume of high unit price products is better, and the recovery of income growth is stimulated. In addition, as new products sold better, the old discount sales, the company's inventory liquidity is good, the gross profit margin level is restored, and then the net profit level is restored.

In 1987, 51% of the shares were sold to Japanese subsidiaries to actively expand overseas markets.

After the listing, because the company is close to Canada and Europe, we focus on developing these two regional markets. In the 1983-1991 year, the European part has been the main market for NIKE overseas. In addition, due to the fact that the Japanese market is quite related to the company, NIKE set up a subsidiary in Japan and sold a 51% stake in the Japanese subsidiary to the local distributor in 1987. In addition, sales in Europe and other countries declined, leading to a 21% decline in overseas market revenues.

1988 acquisition of Cole Haan new brand, increase new brand strategy

NIKE acquired 100% stake in Cole Haan and its subsidiary in 1988. The total amount required for acquisition is US $95 million, of which $15 million is the liabilities of the underlying company. NIKE completed its acquisition with us $89 million 400 thousand in cash and 234713 shares in the market capitalization of US $5 million 800 thousand. This marks the beginning of NIKE's development from a single Brand Company to multiple Brand Company.

2.3 or 1993-2012 years: facing difficulties with diversified brand combinations and global expansion strategy.

FY1993-2012 this longer period of 20 years is an important period for the expansion of company's revenue and profit scale: business income increased from FY1993's $3 billion 405 million to FY2012's $23 billion 331 million, CAGR was 10.1%, net profit increased from FY1993's 329 million US dollars to FY2012's 2 billion 223 million US dollars, CAGR was 10%. In the past 20 years, the gross profit margin of the company has been stable, and the gross / net profit center is 41% and 8% respectively.

Although this stage has lasted for a long time and faced many difficulties and challenges, the scale of revenue and profit has increased rapidly, mainly due to diversified brand combinations, stable overseas market expansion and continuous R & D investment.

Cleaning up stock and celebrity endorsement are the main measures to solve the 1999 performance decline.

In 1999, NIKE declined in all three other regions except Europe. By the cancellation of the NBA season, the weak retail environment and the adverse effects of inventory disposal, the sales volume in the US and the Americas decreased by two digits in that year. As Asia's economic crisis hit consumers hard, the Asia Pacific region's income and profitability declined sharply. Driven by the growth of clothing sales, Europe is the only region where sales are rising. Clothing design is closely related to changes in consumer demand and has injected fresh vitality into the brand.

To cope with the above situation, the company takes targeted measures according to local conditions. Using large-scale promotion to clear up inventory backlog and raise inventory turnover speed, the company reduced its inventory of 94 million US dollars and 12 million pairs of sports shoes, and the stock size gradually returned to normal level. In addition, the company introduced a new inventory management system to increase sensitivity to inventory problems caused by seasonal and market fluctuations. Conform to the trend of change, develop new products according to the needs and preferences of different consumer groups, and integrate the popularity and sports professionalism. The company introduced the cost-effective footwear to the Latin American market and gained Latin American market share. A positive marketing strategy was adopted to open up celebrity endorsements and sign Michael Jordan with us $2 million 500 thousand. The Air Jordan launched in the future will bring huge revenue to NIKE. During this period, NIKE also signed Tiger Woods and Brazil football team, and NIKE spokesmen were the top athletes in various sports fields. They carried out professional sports routes and implemented sports marketing strategies. To digest inventory, research and develop products and create a positive retail environment, the Trinity strategy helps NIKE to regain its vitality and reach its peak in FY1999.

Diversified brand combination is an important means.

Building a diversified brand portfolio. In 1994, NIKE acquired the ice hockey brand Bauer, which is mainly aimed at two sports of hockey and ice hockey. It aims at broadening the company's product line and occupying the market of all kinds of sports products in an all-round way. In 2002, NIKE acquired Hurley, the extreme sports equipment brand, and began to pay attention to the extreme sports market, which designed and sold surfing, skateboarding equipment and youth daily footwear and accessories. In 2003, NIKE purchased the Converse which was on the verge of bankruptcy for $305 million, filling the gap of NIKE in the casual footwear market. In 2004, NIKE bought Starter for $43 million. The brand pioneered the cross boundary between sportswear and popular culture. In 2007, NIKE bought the football brand Umbro for $630 million, and completed the acquisition in 2008. This prompted NIKE to expand its share in the football market, plus the brand that had been acquired, and NIKE formed a multi brand and all-round strategic layout.

After the massive brand expansion, NIKE formulated a medium and long-term strategic plan to remove the sub brands which are not well matched with the overall brand strategic objectives, integrate other excellent brands that have complementary effects on their own brands, and concentrate their advantageous resources on profitable product lines and brands. They sold Baucer, Starter and Umbro and Cole Haan brands in 2008 and 2012 respectively. After nearly 20 years of acquisition and development, NIKE has established an omnidirectional and diversified brand matrix. Its product line is abundant, covering all sports fields, all age stages, and all income groups, and the market share has steadily increased.

Robust overseas market expansion strategy is the key.

Overseas markets continue to expand. Because of its forward-looking strategic vision in the early twentieth Century and its early entry into the Asia Pacific region, especially in the Chinese market, NIKE has helped NIKE take the lead. The company has been developing rapidly in the past 20 years. In addition, after the rapid growth of revenues and profits, the company gradually began to find steady growth direction in the 2000 fiscal year and continued steady growth and long-term development.

NIKE has continued overseas market expansion. The Asia Pacific region is the most potential growth area in the NIKE international market. Since twenty-first Century, the growth rate of the Japanese market has slowed down slightly, and the rise of the Chinese market has become an important driving force for the rapid growth of the Asia Pacific region. In 2009, the company divided its business into six major regions, with clearer positioning of emerging markets such as greater China.

Sustained R & D investment is the core.

In 1979, NIKE will apply air cushion technology put forward by aerospace engineer Frank Rudy to product design, and launched the first pair of air cushion sports shoes Tailwind. Through this core technology, NIKE's market share increased to 33%, becoming a sales star. After that, NIKE continuously improved this new technology. In 1987, MaxAir was born, not only for the first time to see the air cushion, but also the air cushion becomes bigger, which can provide better impact protection. After that, AirMax90, AirMax180 and AirMax93 have been launched.

2.4, 2013 to date: sound development, virtuous circle

In recent 6 years, the income scale of NIKE has increased further. The gross profit margin in the 2013-2018 year is about 44.8%, the net profit margin is about 9.9%, the gross profit margin of FY2013-2017 is about 45%, and the net profit margin is about 10.8%. The decline in net profit and net profit margin of FY2018 company has great impact on the profitability of the company. Even so, FY2018's revenues still exceed $36 billion.

FY2018 net profit performance is poor, which is greatly influenced by policies.

According to the earnings data, FY2018 Q4 NIKE revenue was 9 billion 789 million US dollars, an increase of 12.82% over the same period last year, net profit of US $1 billion 137 million, an increase of 12.8% compared to the same period last year, and the annual revenue of US $36 billion 397 million, an increase of 6% over the same period last year. However, due to the impact of the US tax reform, FY2018's net profit for the year was 1 billion 933 million US dollars, down 54.41% from the same period last year. Among them, sales in North America ushered in the first growth in four quarters, an increase of 3% over the same period last year. The performance of the Greater China region is even brightest, with a total revenue of 5 billion 134 million US dollars for the first time, breaking through 5 billion US dollars for the first time, increasing 18% over the same period on the basis of exchange rate unchanged, EBIT 1 billion 807 million US dollars, an increase of 20% over the same period, and two digit growth for the 16 consecutive quarters.

In terms of net profit, the net profit of FY2018 NIKE is only 1 billion 933 million US dollars, mainly due to Trump's tax reform bill. According to the provisions of the tax reform on cross border tax payment, the foreign profits will be remitted to the United States to achieve tax exemption, but enterprises need to pay the foreign tax profits that they have not paid before and enjoy a certain discount. That is, the 15.5% tax rate for cash or cash equivalents, and the 8% tax rate for non cash assets can be paid in installments within 8 years. Therefore, according to the tax reform act, the high income tax on FY2018 NIKE is mainly caused by the repatriation of profits from the one-time profits paid back to the former foreign profits. And this directly raised Nike's income tax to $2 billion 392 million, up +270%.

In addition, the company announced that its board has authorized the new four year 15 billion US dollar plan to repurchase NIKE B class common stock. The company expects the $12 billion share repurchase program will be completed in FY2019, and the new plan will begin after the current plan is completed.

Overseas markets and direct stores are the future strategic direction.

In recent years, NIKE's earnings and profits have been more robust. In October 2017, NIKE CEO Mark Parker said that the future overseas market and direct store business will be the main force of NIKE's performance growth, and it is expected that in the next 5 years, NIKE75%'s revenue growth will come from outside the United States.

From the perspective of market layout, the Chinese market has great potential for many sports brands in many overseas markets. This is mainly based on two reasons: on the one hand, due to lifestyle changes, people's attention to fitness has resulted in an increase in demand for sports apparel and equipment, and business growth of sports brands; on the other hand, due to the trend of sportswear and professionalism, sports brands with good design ability and professional skills are good.

From the point of view of channel, NIKE will strengthen the construction of Direct stores in the future. Due to the fact that NIKE has fewer direct stores in the global market, there are about 1182 in FY2018, 392 in North America and 790 in overseas. Appropriately increasing investment in Direct stores will be conducive to the direct feedback and influence of the company on the regional terminal market.

3, "moat" is deep-rooted and competitive advantage is remarkable.

Since the listing of NIKE, the share price has continued to rise. From the following data and indicators, we can see that in the past ten years, the overall development of NIKE has been relatively stable. Recently, FY2018's income and profits have fluctuated greatly, which is due to the strategic adjustment made by the company itself against the macro market environment.

Based on the analysis and measurement of the main indicators, we summarize the core competitiveness of the company in three aspects.

R & D core competitiveness of science and Technology City

Since the birth of NIKE, every major breakthrough has been closely related to product R & D technology. Not only does the product win by quality, it also promotes the trend of sports footwear industry through innovative research and development. Since 1997, the number of NIKE patents has been increasing year by year, basically maintaining around 200 patents. Among them, with NIKE Air as the representative, since the advent of the first double NIKE Air in 1979, the product line has gradually expanded, and has led and attracted generations of consumers.

The core of Nike technology is air cushion. The Air air cushion technology, which first appeared on 1978 Nike Tailwind running shoes, is one of the most proud technological innovations in the development history of sports giant Nike.

Diversified brand combinations

NIKE's current brand portfolio includes NIKE's main brand, Converse, Air Jordon and Hurley. Although these brands are mainly subordinate to the sports footwear industry, their product positioning, target groups and market are different, forming a differentiated brand combination, which is conducive to the expansion of the company's performance and scope.

Actively exploring overseas markets

After listing, NIKE actively sought the right opportunity to expand its product market overseas. Besides the closer North American market, the company also turned its attention to China, Japan and other Asian Pacific regions, as well as the European region. By adopting different measures at different stages, the product market is gradually extended to all parts of the world. As of FY2018, NIKE accounted for 43% of revenues in North America, 27% in Europe, the Middle East and Africa, 15% in the Greater China region, and 15% in Asia Pacific Latin America (except big China). At the same time, in the past five years, NIKE has been relatively stable in all major regions of the world, which is conducive to the steady growth of the company's income.

Create personalized customized product camps to meet the differentiated needs of consumers.

NIKE customized shoe service fully meets the needs of consumers for differentiated and personalized products. NIKE has different types of services in mass customization, integrating its own culture and marketing concept. It not only promotes brand loyalty, but also makes products universally accepted by consumers all over the world.

Tap potential sports rookie and sponsor star teams, build up positive brand image and establish deep corporate culture.

NIKE combines product brand with sports and competitive spirit to convey positive and optimistic, tough and upward striving spirit to consumers. It gradually combs NIKE's unique brand culture and influences consumers from generation to generation. The company is committed to mining potential sports newcomer, NIKE brand value and athletes' value growth together, to achieve the maximum effect of brand image publicity. In 1984, when Nike first signed a 5 year contract with Jordan, Jordan gave out the conditions including the gift of Nike stock and the use of Jordan's name on Nike sports shoes. Jordan's total value amounted to $1 million a year. Additional conditions for Nike include Jordan's best rookie of the year, All-Star, 20+ and $4 million in 3 years. If Jordan fails to complete the 4 tasks, the 5 year contract will be terminated two years ahead of schedule. Jordan completed the agreement beyond expectations. The Air Jordan series has also developed to the eighteenth generation. Jordan let Nike in the basketball field full swing, relative to the mature charm of Adidas, Nike with young vitality into the brand image, win more young people's love. NIKE series brand advertising is the main emotional marketing, the purpose is to continuously cultivate consumer loyalty to the brand and consumer choice habits, accept the brand concept, value output.

4, conclusion: thinking about sports shoes and clothing enterprises in China

China has grown into the largest manufacturing country in the world. With the emergence of regional leaders and even global leaders, Lining sports, Lining and a number of Chinese sports shoes and clothing enterprises have opened up the strategy of overseas layout and have the potential to become the next multinational company. In the long run, leading companies with global competitiveness and conditions of global expansion are expected to get out of the "Red Sea" of the mainland and seize overseas market share.

Domestic leading Anta sports (02020) has fully opened the development strategy of "single focus, multi brand and all channels" and has developed towards the diversification of product brand. The way of brand expansion is mainly manifested in three stages: 1) double brand development stage: in 2008, the company acquired FILA Greater China business, opened up high-end sports brand clothing sales, successfully turned the FILA brand performance into a profit, formed the development situation of Anta and FILA dual brand and differentiated positioning; 2) multi brand development stage: since 2016, Anta sports has been buying or joint-venture more sports brand, and extends the perspective to the brand of children's wear. The company has added DESCENTE, KINGKOW, KONGLONSPORT and SPRINDI brands. Future Ltd will continue the development strategy of multi brands, adopt the way of mergers and acquisitions or joint ventures to increase the brand series to meet the needs of different consumer groups; 3) the development stage of overseas expansion and acquisition of new brands: since September 2018, the company announcement has disclosed that it intends to acquire the Amer Sports 90% equity of Finland diversified brand enterprises, and the company expands to more diversified brands and overseas markets.

Similar to NIKE's overseas expansion, Anta sports has gradually opened up the situation of overseas mergers and acquisitions. However, the acquisition and holding of more brands is one of the factors that led to NIKE's difficulties in company operation during the period of huge expansion, which provided experience and lessons for China's expanding enterprises.

On the whole, NIKE has shown us a typical case of an excellent multinational company in the global market expansion and its own difficulties. The extraordinary achievement of NIKE is the result of multiple factors. We believe that these factors may be universal but difficult to replicate. The strategic decision made by NIKE at the critical time points is fresh, which provides guidance for China in a similar situation.