Revelation Of Nike In Sixty Years

　　 Chapter 1

The sports industry has a large scale, a high degree of prosperity and a good competitive structure.

(1) Gao Jingqi: the scale of sports shoes and clothing industry in China reached 264 billion 760 million yuan in 2018 and 11.6% in 2007-2018 years. According to Euromonitor, CAGR will remain 10.4% double digit in the next five years, according to CAGR. China's per capita sports consumption in 2018 was about 29 U.S. dollars / year, compared with the US $357 / year, Western Europe, Britain, France and Germany and other countries 130-170 dollars / year, the room for improvement is large.

(2) good track: in 2018, the global sports shoes and clothing company CR6 reached 37.4%, compared to the 9.8pct increase in 2009. Among them, Nike and Adidas were far ahead, and the total market share increased from 23.3% in 2009 to 27.6% in 2019, and the leading strength was constant. The main reasons were as follows: first, the scale effect of the supply chain was strong due to the attribute of sports shoes and clothing, represented by Shenzhou International; two, the barrier of product technology was high, especially that of sports shoes; and three, the marketing resources of quality sports events were scarce, which were often grabbed by the leading brands. Three

(3) out of the stock market: Nike has gradually opened up the gap with Adidas since 2000, and has stood firmly in the top brand of the global sports apparel. It has taken full lead in terms of scale of revenue, global market share and total market capitalization. FY2018/19 Nike's revenue is about 1.5 times that of Adidas (2018), its net profit is about 2 times that of Adidas, the global market share is 4.6 PCT higher than Adidas, and its market value is 2-2.5 times of Adidas's. In FY1999/20-2018/19, Nike's revenue increased from $8 billion 780 million to $39 billion 120 million, CAGR was 8.2%, and its market capitalization rose from around $15 billion to over $150 billion. Compared to the same period (1999-2018 years), Adidas's revenue increased from 5 billion 700 million euros to 25 billion 900 million euros, CAGR was 8.3%, and its market value increased from about 4 billion US dollars to more than 60 billion US dollars.

In the 1990-2018 years, the Nike PE valuation center was basically 10-30 times. Since 2017, the valuation has risen to more than 30 times, which is historically high. In the 1990-1997 year, the valuation of Nike went up, and the decline in the performance of 1998-1999 years increased the valuation to 50 times. After that, the value of the adjustment period fluctuated from 20 to 2008 until the financial crisis intensified, and the valuation dropped to 10 times the bottom point. In 2010, the valuation increased steadily to more than 30 times. Adidas's valuation center is also 10-30 times. Before 2009, ADI's valuation trend is basically the same as Nike, but the overall valuation level is lower than that of Nike. After 2010, ADI's volatility was higher than that of Nike. First, ADI launched the fashion series, which led to fluctuations in its performance. Two, the two leading companies in the world faced competition directly, especially after 2016.

Judging from other international major sports brands, most brands also increased in value. However, because of the volatility of their performance, PE made a sharp concussion. PUMA slowly increased from 15-20 times in 2000 to 40 times since 2017. Cage's elimination of the effect of large fluctuations in performance was 15-20 times from 90s to 20 in 2015. In the younger brands, Lulu lemon was relatively stable in valuation. PE declined from 40-60 times to 20-40 times in 2007-2013 years, and then slowly increased to about 50 times. Andemar's earnings performance continued to increase after 2008, driving the valuation from 20 times to 100 times higher than the high point. After the slowdown, the impact of the mutation was eliminated and the valuation fell to 50-60 times.

Two. Review of Nike's development process

(1) before 60s: the era of "former Nike" movement

Compared with casual fashion shoes and footwear, sports shoes and shoes have special features of scenes, strong functional attributes and relative marking qualities. In the narrow sense, sports shoes and clothing mainly aim at indoor or outdoor normal environment, and can be further divided into two categories: professional sports and sports sports. The generalized sports shoes and clothing also include outdoor shoes and clothing, that is, mountaineering, skiing, cross-country, surfing and other activities aiming at outdoor special geographical environment, which require higher professional skills and equipment.

Professional sports shoes and clothing: according to the different groups of people, they are divided into two categories: professional sports and mass professional sports. Professional sports shoes and clothing have high functional requirements and are mostly customized for professional athletes.

In the context of the popularity of the national sports movement, the concept of sports began to be applied to casual fashion shoes and clothing. (1) the brand FILA, PUMA, Kappa and so on, which are both functional and fashionable; second, fashion and personalization sports VANS, Kenzo, Superme and so on; third, cross-border cooperation of traditional leisure brands or sports brands, such as CK, Uniqlo, H&M, etc.

Sports shoes have higher technical requirements for soles and fabrics, especially professional sports shoes. In the 19-20 century, there are many technological innovations in sports shoes.

The development of sports footwear industry and the establishment of brand are closely related to the promotion of sports events. The second half of the nineteenth Century is the sprouting stage of the modern sports industry. Most of the modern sports concepts and rules were born in this period, including football, badminton, tennis, basketball and other sports. In the first Olympic Games in 1896, many track and field events, swimming and gymnastics were preliminarily established. With the standardization development of the industry, the professional sports in twentieth Century entered a period of vigorous development. Professional clubs and sports events came forth one after another, and the participation of the mass movement increased rapidly. With the promotion of sports market penetration and the continuous improvement of professional requirements for sports shoes and clothing, the market demand for sport shoes and clothing has increased sharply, and in the first half of twentieth Century, it has entered the rapid incubation and growth stage of sports shoes and clothing brands.

(two) in the 60-90 age: Nike overtook technology and marketing.

In the middle of twentieth Century, the sports industry entered the stage of popularity. The global sports shoes and shoes presented the three pillars of Germany, the United States and Japan, including the German brand represented by Adidas and PUMA, the American brand represented by New Balance and CONVERSE, and the Japanese brand represented by the ghost tomb tiger. Nike was founded in 1962 by accountant Phil knight and sports coach Bill Bowerman, formerly known as blue ribbon sporting goods company, mainly in the United States acting Japanese ghost mound running shoes. In 1966, Nike's self developed Cortez running shoes were successfully introduced into the market. In 1969, ghosts took part in finding bigger agents. In 1972, it officially changed its name to Nike, and launched the brand logo "Swoosh". It has been in use so far and has been listed in 1980.

As a rising star, Nike relies on product technology innovation and top star publicity to accurately grasp consumer demand and share the bonus of industry expansion.

At the beginning of Nike, the product technology innovation broke through. In the year when Nike was founded, Waffle Trainer training shoes were launched, which pioneered the technology of "waff extra bottom". In the late 70s, the air cushion Air technology was first created. It was the innovation of slow vibration technology and monopolized by Nike. In 1987, it launched Air Max 1 shoes. Since then, Air series has become an important driving force for Nike growth and has been selling well so far. According to the The NPD Group survey, Nike has the advantage of the top three in the TOP10 hot sports shoes of the United States, and the advantage is obvious.

Nike emphasizes brand spirit, signing top star marketing, and improving brand strength and market share simultaneously. In 1980, Nike first exceeded Adidas in North America, reaching 50%. In 1984, Michael Jordan signed the Nike Air spokesperson and launched the Air Jordan series basketball shoes. In 1988, the slogan "Just Do It" was deeply rooted in the hearts of the people. After helping the brand suffer from the impact of Reebok in 80s, its share in the US market once again rose to the top in 1988. In the 1987-1996 year, Nike sales increased from $880 million to $6 billion 470 million, and CAGR was 24.8%. In 1996, Nike accounted for 43% of the US market share, which increased 25 PCT compared with the 1987 low tide.

(three) after 90s: multi brand and single brand exploration period.

In 1988, Nike acquired Cole Haan, opening up the road of multi brand layout. In 1994, the hockey brand Bauer was acquired in 1994, and its own brand Nike Golf was created in 1998. In the 2002-2007 years, Nike accelerated its acquisition and acquired four brands of Hurley, Converse, Starter and Umbro. But in 2008, the outbreak of the financial crisis prompted the company to adjust its strategy and refocus on the main brand Nike. Through the brand downsizing to integrate the advantageous resources, Umbro, Starter, Bauer and Cole Haan were sold in the next three years, and the brand Converse was repositioned, which weakened the sports attributes and strengthened the connotation of restoring the old and the trend.

After stripping, Nike focused on the four major brands of Nike, Jordan Brand, Converse and Hurley, focusing on comprehensive sports, professional basketball, sports trend and outdoor sports. From the price point of view, Nike brand covers a wider Middle and high-end market. The higher the technology content is, the higher the price. The price of Jordan series is higher, mainly due to star effect and premium brought by design and technology. Converse brand focuses on fashion, and product price is related to design and limited joint name.

Three, Nike's market value and valuation analysis

(1) 1980-1990: Anti Reebok, stable domestic market, market value rise

Because Reebok was strong in the US market, Nike's market value was suppressed before 1987, basically running below $400 million. In 1988, the upward turning point of FY1988-1991, Nike's revenue increased by more than 30%, and its net profit to CAGR was 68%. The market share of the United States was over 30%. In 1989, the market value was nearly 4 times higher than that of 1987, and PE increased from 10 times to 20 times. The main reasons were: first, the market was good for new products, marketing and reform, plus adequate inventory impairment, and it basically faced better expectations. In 1988, it was once again the first place to maintain stability; two was the company's active expansion of overseas channels and an important driving force for pulling growth; three was Nike's acquisition of Cole Haan in 1988, belonging to the first sports company to expand multi brand, and the market gave valuation premium.

(two) 1991-1997: Asia's rise, global dual hegemony and valuation rise.

During this period, Nike expanded Asia to deepen globalization, surpass its peers and reach the top of the global sports brand. In 1988, when Nike surpassed Reebok in the US, it returned to its healthy growth. Although its total revenue still lagged behind Reebok, it benefited from the huge American sports market and the high sales growth in Europe. The gap between them continued to shrink. By 1990, Nike had surpassed Reebok with a total revenue of 2 billion 240 million US dollars.

As a whole, Nike's market value and valuation break through period. In 1997, the company's market value exceeded $20 billion for the first time, and its valuation reached 30 times. During the period before 1992, when Reebok surpassed the world's first and 1995 global strategy, the rise of the Asian market was the two wave of market value and valuation rise, while the cyclical fluctuation of the Middle American sports market slowed down the company and reflected the stock price.

(three) 1998-2003: slow growth, market volatility, low valuation.

During this period, Nike was faced with many pressures, mainly due to the greater demand side. Low performance, the market value of $100-180 in the shock, and did not exceed the 1997 high. In terms of valuation, the systemic risk of the Asian financial crisis reduced the company's PE to 15 times by the end of 1997. The Internet bubble pushed the valuation up to 60 times, and quickly returned 15 times after the bubble burst. Since then, the performance has been more volatile due to the supply chain investment, and the valuation is 20-25 times. The stock price has shown a good growth since 2003, and the income has been speeded up. The provision of Bauer goodwill has provided a basis for the performance elasticity.

Compared to Adidas, Salomon's thickening and brand strength were increased. The 1997-2003 year income of CAGR was 10.6%, significantly higher than that of Nike, although the result was fluctuating due to merger and integration, but overall remained stable compared with Nike, especially after double-digit growth in 2001, which increased the market value from 2 billion US dollars to 5 billion US dollars, PE in 10-20 times interval, lower than Nike, reflecting Nike's leading brand strength is still solid and deep.

(four) 2004-2009: demand recovery, financial crisis, bottoming repair

Asia's demand recovery during this period, especially China's economic rise, brought huge sports shoes and clothing to potential and helped Asia's income growth surpass that of Europe. Although the United States grew by low units, the expansion of overseas markets gave Nike another critical growth period. On the whole, market value began to rise in 2004, and reached a record high in 2018. However, valuations were suppressed by the big market, weakening first and rising again, and then again rising to 20-25 times after hitting 15 times in 2016. The impact of the financial crisis in 2008 was relatively large. The market value and valuation in the second half of this year had dropped considerably, but 2009H2 began to adjust first after the valuation was wrongly killed.

During the period, Adidas increased its market value by more than Nike. In 2004-08, its revenue / performance CAGR was 21%/25%, pushing the market value to three US dollars to 15 billion US dollars, but the valuation center is still 15-20 times, and its performance stability is not as good as that of Nike. Moreover, the market's understanding of ADI's brand power is still unclear: (1) the growth of Adidas's revenue is largely driven by the emerging markets in Asia, while the share of Nike's market is also rising simultaneously, and both sides face the competition directly. At the same time, Nike's strong market share in Adidas continued to improve, while Adidas has been weak in the US market. Second, Adidas's net interest rate was below 6% in 2000, while Nike was basically above 6%.

(five) 2010 to date: China has led the market.

After the financial crisis, demand in the US and Europe began to recover, and Nike returned to growth. More importantly, China jumped to the main overseas market, providing the most critical catalyst for Nike's new round of global expansion and market value / valuation. During the period, the overall market value and valuation of the company experienced a long-term upward trend, especially in the 2010-205 years. After experiencing squeezing by competitors, there was a pullback to the end of 2017, but with the advantage of brand strength and upgrading in many ways, the stock price continued to rebound in 2018, and its valuation increased to 35 times.

In contrast to Adidas, shares rose to a record high after 2010, benefiting from high growth in China. There were three obvious reverse changes in the valuation of the two companies after 2013.

(1) Nike wins in 2013-15 years: Nike is increasing rapidly. Adidas is in a low ebb due to the disjointed design and the increasing extrusion of EDMA in the US, and its market value and PE have dropped markedly.

(2) Adidas wins in 2016-17 years: once again relying on the recovery of excellent fashion categories, the growth rate of Nike is significantly higher than that of Nike, and Nike is squeezed. The strongest growth of stock price has been welcomed by two phases of competition, the market value has increased from 15 billion to 55 billion US dollars, PE has increased to 30-35 times simultaneously, and the first valuation is consistently higher than that of Nike.

(3) Nike wins in 2018: Nike 18H1 has gradually resumed its momentum, while Adidas's growth rate is still higher than that of Nike, but it has slowed down compared with the previous two years, and the valuation has been adjusted to 25-30 times, which is once again lower than that of Nike.

1, 2010-2015: China continues to grow at a high level, leading barriers continue to deepen and strong rise.

FY2011-2015 grew rapidly and revenue / performance CAGR reached 11%. After the financial crisis, valuations were restored, demand rebounded, China's growth rate increased, and the leading barrier became more and more profound. Nike shares welcomed the most persistent and strong rally after the listing. The market value nearly doubled 5 to nearly 2015 dollars at the end of 2015, and PE also climbed to 30-35 times.

2, 2016-2018H1: competing products squeezing, slowing down continuously

FY2016 has been slowing down for three consecutive years, thanks to Adidas's recovery and Andrew's squeeze, which has been squeezed by China, North America and its subsidiary brand Converse. During the period, market capitalization and valuation were callback, at 800-1000 billion and 20-25 times respectively.

3, 2018H2 to date: three double strategy to help speed up recovery, brand strength is enduring.

Under the help of the "three dual strategies", product design, supply efficiency, retail experience and overall progress, brand strength continued to stabilize, driving the US and China's revenue to increase again. In 2019, the market value continued to rise, breaking through the historical high of $157 billion, and the valuation increased to 30-35 times.

In view of the sub regional situation, China will continue to provide the key driving force for Nike, and the penetration of local sports shoes and clothing will further improve. FY2010-19 Nike revenue / performance CAGR reached 8.3%/8.7%, during which US CAGR increased to 7.7%. For the first time, FY2010 Nike disclosed that greater China accounted for 8% of revenue. FY2010-2019 China's revenue CAGR is 15%, leading the world, accounting for 8.7pct to 16.7%. In 2010, China's sports industry was slowing down, but the brand of the global sports leader was strong. It quickly cleared up China's dealer channel inventory and rebounded. China jumped to the main overseas market, providing a catalyst for Nike's new round of global expansion and market capitalization.

Four, the financial comparison between Nike and ADI

(1) growth: the growth of the main brands is similar, Nike is more stable, and the Greater China region is leading the way.

Nike FY2001-19 revenue increased from $9 billion to $39 billion 120 million, and CAGR was 8.04%. Among them, FY2001-08 revenue increased from $9 billion to $18 billion 630 million, CAGR was 9.53%, mainly due to the continued growth of the main brand and multi brand acquisitions. FY2009-11 revenue CAGR declined to 2.6%, the financial crisis led to weak consumption. After focusing on the global expansion of the main brand, FY2012-15 revenue CAGR rose to 9.46%, but FY2016-18 revenue CAGR slowed to 6.03%. FY18/19 has recovered, FY19/20Q1 has increased by 7.16%, maintaining 7%+ growth.

Adidas's 2000-2018 year revenue CAGR is 9.11%, higher than Nike's 1.07pct. The main reason is that Reebok's thickening is larger in 2006, while CAGR's revenue in 2006-2018 years is 6.13%, which is lower than that in the same period. Moreover, Adidas's growth trend was more volatile, with three negative revenue growth (2003, 2009, 2013), while Nike only slightly decreased by 0.8% in FY2010. In absolute terms, the income gap between them first narrowed and then widened. At the beginning of the 20th century, Adidas's income was only about 57%, and the acquisition of Reebok increased with income. In 2009, the gap was the smallest, Nike's income was 83%, but after that, it was widened to 66% of Nike's income in 2018. The growth in 2015-2017 years is better than that in Nike, and the growth rate in 2018 is lagging behind again. 19H1 revenue increased by 5.39% compared with Nike.

According to sub brands, Nike's main brand (including Jordan Series) is the main body of revenue contribution. FY2005-10 main brand revenue accounted for about 87% of the total, mainly the multi brand strategy, after the brand weight loss accounted for another rise to about 95%. FY2000-19, the main brand revenue increased from 8 billion 590 million US dollars to US $37 billion 220 million, CAGR was 8.02%, which is consistent with the overall revenue trend. Sub brand CONVERSE FY2007-19 revenue increased from $550 million to $1 billion 910 million, CAGR was 10.9%, and growth slowed after FY2015, mainly due to the split of CONVERSE and main brand channels, reducing the number of distribution channels.

Adidas also relied mainly on the main brand to generate revenue. In the 2000-2018 years, the main brand revenue increased from 4 billion 670 million euros to 19 billion 850 million euros, CAGR was 8.37%, slightly higher than that of Nike's main brand, but the volatility was obviously greater. 2005-08, 2010-12, and 2015-17 years are double digit sales growth period, the first two segments are more synchronous with Nike, the latter is better than Nike, and from their own brand strength. In terms of sub brands, Adidas acquired Salomon in 1997 (including its US golf player Telme). Salomon's income was not increased in 2000-04 years, and was stripped in 2005. Taylor Adidas Golf earned 4.5% CAGR in 2000-2016 years, and continued to decline after 2012, and was stripped in 2017. In 2006, the acquisition of Reebok increased the proportion of main brands from 70% to 92.2% in 2018, which accounted for slightly less than the proportion of Nike's main brands. Reebok's revenue fell from 1 billion 979 million euros in 2006 to 1 billion 687 million euros in 2018, and CAGR was -1.32%, accounting for 7.8% from 20.9% to 7.8%, showing a weaker performance than CONVERSE, dragging down the group as a whole, partly because the focus of Adidas was always on the main brand, and the strategy of using Reebok resources to strengthen the main brand, such as 2005 itself, instead of becoming a NBA sponsor. Since then, Reebok has not given enough investment, its brand positioning is not clear, and its market share has continued to decline. After it no longer sponsored NFL in 2010, it basically withdrew from the professional sports market and switched to the fitness field, but there was no obvious improvement.

Judging from the structure of products, Nike has been relatively stable in 2000. With the patented technology of shoes, moat has been built. In recent years, the sales of shoes and clothing have accounted for 65% and 30% respectively. Adidas did not disclose the sales structure of the main brands separately. From the group's overall perspective, the proportion of footwear products accounted for an increasing trend, mainly due to the popularity of Trifolium, Yeezy and other fashionable fashion shoes, which currently account for about 60%, but still lower than Nike's. Clothing accounted for the first rise and then drop, currently about 38%-40%, higher than Nike. Accessories accounted for a similar proportion. It can be seen that Nike relies more on footwear products than Adidas.

According to the regional perspective, Nike's Greater China is the main driver of growth. The main brand FY2000-09 US revenue CAGR was 3.7%, after FY2012, the growth rate of the North American market slowed down continuously until FY2019 recovered to 7.1%. FY2000-FY09 overseas revenue CAGR reached 11.3%, accounting for an increase from 45% to 61%. Since then, the Greater China region has been separately disclosed, and FY2008-19 Greater China revenue has reached CAGR 14.8%, accounting for 8% from 17% to 8%. In terms of performance, the CAGR of EBIT in FY2008-19 Greater China is 17%, and the growth rate is V. Since five years after FY2014, CAGR has increased to 23.8%, and FY19 has increased 31.5% to 2 billion 380 million US dollars.

Adidas released the Greater China region in 2008-2017 years, and merged into the Asia Pacific region after 2018. From the perspective of the group as a whole, the Greater China region is also the main driver of Adidas growth, as compared with Nike. The 2008-2017 annual income of CAGR is 15.1%, while the CAGR in Western Europe and the United States in the same period is 6.8% and 7.6% respectively. Looking at Adidas's main brand, the income of CAGR in Greater China was 28.2% in 2014-2017 years, which only disclosed the main brand's income separately. In 2017, the total income of the main brand and group Greater China reached 3 billion 812 million and 3 billion 707 million euros respectively, accounting for 18% and 19.5% respectively. In 2018, the Greater China region was merged into the Asia Pacific region. In 2018, the income of 19H1's main brand in the Asia Pacific region increased by 12.2% and 12.8% respectively, and continued to lead the world.

(two) profitability: Nike's gross margin / expense ratio is lower, and net interest rates continue to lead.

In terms of gross margin, Nike's gross margin rose from 39% of FY2000 to 46.3% of FY2010, a cumulative increase of 7.3pct, mainly due to the promotion of high tech new products, the increase of the price of the global supply chain, and the control of the cost of the global supply chain. After the FY2010, the gross margin basically fluctuated around 45%, showing a certain periodicity. The gross profit margin of Adidas has always been higher than that of Nike, and the trend is upgrading - fluctuating - upgrading, especially after 2014. It has increased rapidly, reaching 51.9% in 2018, which mainly benefited from the high price of fashionable fashion products, and the optimization of supply chain and discount rate. From a horizontal perspective, Nike's gross margin is in a relatively low position in the industry, mainly due to the wider product price, product structure and distribution system, while Adidas's gross margin is in the same industry. In the past two fiscal years, Anta sports and Lining gross profit margin also exceeded Nike, the former benefited from the high gross margin FILA, while the latter was related to the high proportion of the direct Battalion (about 25%).

In terms of rate of fees, Nike's operating cost rate has been rising steadily, or about 30%-32%, of which the sales cost rate has dropped from FY2010 to 9.6% of FY2019, which has decreased by 2.7pct. The promotion of brand strength has brought about the marketing scale effect; while the FY2019 management fee rate is higher than FY2010's promotion of 2pct, and the increase of personnel rental cost caused by the expansion of direct proportion is the main factor. The cost of Adidas is significantly higher than that of Nike, and the operating cost rate is on the rise, about 41%-43%, which is about 11-13 PCT higher than Nike's. The sales cost rate was stable at 12%-14%, 3-4 PCT higher than Nike, and the management fee rate increased to 30% after 2009, 8-10 PCT higher than Nike. But in the past two years, the cost of Nike has increased, and the gap has narrowed, and has returned to 10PCT.

In terms of performance, Nike's net interest rate rose from nearly 6.4% of FY2000 to 12.3% of FY2016, thanks to the launch of high-tech new products, increasing the proportion of direct sales and strengthening the cost control and so on. Its net interest rate continued to be higher than Adidas's 4-6pct. The net interest rate of FY2019 is 10.3%, higher than Adidas's 2.5pct, and the profit level is in the upper reaches of the industry. Therefore, under the support of larger sales scale, Nike's performance advantage is more obvious. FY2000-19's net profit to CAGR is 11.3%, breaking through 4 billion US dollars, while Adidas's performance CAGR is 14.8% in the same period, and it broke 2 billion US dollars in 2018.

(three) operating capacity: Nike's inventory turnover is better.

In terms of inventory, Nike has slowed down sales due to the impact of the 2008-2010 year financial crisis. The company controls the pace of purchase, actively helps dealers to inventory and drives their own inventory to digest, and the number of days of inventory turnover decreases from 80+ days to 75 days. Since then, as the sales resumed and the scale of income grew, the stock increased, and the proportion of direct investment continued to rise, which led to an increase in self owned inventories and the stock volume went up to FY2019 over 5 billion 600 million US dollars. But the turnaround days increased to 95 days after the high point began to decline, now about 90 days, at a healthy level, the overall turnover control ability is excellent. Adidas's inventory trend is similar to Nike's, with 2019H1 breaking 3 billion 500 million US dollars. But turnover has been slower than Nike, in recent years, more than 120 days, in addition to the more volatile revenue, but also because the proportion of direct business is higher than Nike, Adidas Direct stores over 2300, and Nike in about 1200.

　　 Five, Nike's competitiveness from two perspectives.

(1) competition pattern in major markets

According to Euromonitor, the 2018 global sports shoes and clothing company TOP6 was Nike, Adidas, VF, Andrew, Skech and Anta sports. CR6 increased 7.6pct to 36.2% in the past ten years. According to sub brands, the market share of Nike increased from 3.1pct to 15.2% in 2010, higher than 3.9pct in Adidas. In 2018, the market share of Adidas increased by 2pct to 11.3% compared to 2015. Other single brand cities accounted for less than 4%.

United States: Nike has been riding the dust in the US market for nearly ten years. Its share is about 20%, and its competitive products are all below 7%. But in the past three years, the US market share of Nike has dropped by 3 PCT, while Adidas has increased 2.3 PCT. As the second largest sports brand in the US market, Adidas faces a 12.9 PCT difference between Adidas and Nike in 2018 in the face of competition from VF, Andrea, Skech and many other strong brands in the US. The gap is far beyond the global average level, and the gap between the Adidas and Nike brands is smaller than that of other US brands, even in 2014 and 2015.

Western Europe: thanks to home advantage, Adidas and Nike share almost the same company. From the brand perspective, the share gap between the 2009-2011 years was stable within 0.5 PCT; in 2012-2015, Nike exceeded Adidas's 1.7 PCT; in the 2016-2018 year, Nike's share was stable at 13.8%, but with Adidas's recovery, in 2018, it exceeded Nike's 0.6 PCT. Similar to Adidas in the US, Nike also faces the competition of strong local brands such as Decathlon, PUMA, Reebok and so on in Western European market. Moreover, the participation of European residents is higher than that of basketball, which further affects the share of Nike, which is famous for basketball.

China: Adidas and Nike and Anta continue to expand their share of the domestic market and share their share. According to brand, the market share of Nike in 2018 increased by 7.1pct to 19% compared with 2009, and Adidas increased 8.7pct to 17.8%. In recent years, the gap between them has basically stabilized at 1-2pct. It should be noted that the domestic sports brand CR3 is 45.9%, far exceeding the 28.4% and 32% of the US and Western Europe. Anta sports market share in 2018 increased from 7.7pct to 14.9% in 2009, ranking third, and the difference between the market share and the subsequent brand is obvious.

(two) competitiveness of different categories

According to Grand View Research data, the global sports shoes market scale increased from US $67 billion 760 million to US $146 billion 540 million in 2010-2018 years, and CAGR reached 10.1%, faster than the overall 4.7% (Euromonitor data) growth of the same period of the global sports shoes and clothing, and continued to accelerate to double-digit growth after 2012. The anticipated growth in 2019 is expected to increase from 15% to 168 billion 470 million US dollars. The proportion of sports shoes to sports shoes and clothing increased from 29.4% in 2010 to 44% in 2018. Sub region, the United States is the world's largest market for sports shoes, occupying about 1/4 share of the world, followed by 14.4% of China, and the rest of the world accounted for less than 4%. According to the prospective industry research institute, Nike and Adidas, which ranked No. two in 2016, occupy 17.6% and 12% of the global sports shoes market respectively. Due to the prominent function of sports shoes, the concentration level is higher than the overall level of sports shoes and clothing (16.1%, 11.5%).

According to the category, sneakers include sports shoes and professional sports shoes, while the latter take running shoes, football shoes and basketball shoes as the main body. According to Yu Tang sports report, sports shoes TOP3 are running shoes, sports shoes and football shoes. In the United States and China, the share of basketball shoes is larger than that of football shoes, and basketball shoes account for about 20% of the sales of American sports shoes, accounting for 1/3 of China's professional sports shoes. We compare three categories of professional footwear:

(1) basketball shoes: Nike's NBA shoes share, the number of signing players and the sales of signature shoes are the top.

The basketball shoes Market in the United States was formed in the 50s of last century. Among them, NBA shoes are the highest representative of the comprehensive strength of basketball shoes. With the increase of NBA commercial value at the end of last century, the exclusive combat boots of famous stars have become the only way for all sports brands to compete for basketball shoes. At present, Nike is the most important sponsor of NBA. In the 2018/19 season, Nike's main brand (including Jordan Series) has a share of 72% in NBA shoes and only 15.8% in Adidas. At present, Nike has a total of 6 active stars exclusive signature shoes, more than Adidas. According to Forbes data, 7 of the top 12 signatures sold in 2018 were Nike, among which the Jordan series topped the list, proving Nike's strength in the field of basketball shoes.

(2) football shoes: Nike top star traffic, strong momentum from behind

Adidas, as the elder of football shoes, has long been the designated shoe for football teams in various countries since 1950. Until 1998, Nike officially stood firm by assassin series and Ronaldo, the 2005 legend series and Ronaldinho, 2009 CTR360 series and Iniesta's shine. In the Russian World Cup 2018, Nike sponsored 465 players, accounting for 63.4%, far exceeding the sponsorship rate of Adidas 26.7%. Among the top 32, Nike sponsors 10, Adidas 11, but in the final 4, Nike sponsors 3. France and Croatia final brought Nike full exposure. Nike scored 697.5 in total, ranking first in the world cup brand value list.

According to the regulations of overseas major league matches, the players' jerseys are sponsored by clubs, and the shoes can be separately sponsored. According to the five major league matches of Football Boots Database:2018/19, Nike sponsors 17 clubs. PUMA and Adidas sponsor 14 and 13 respectively. Nike sponsors players' shoes proportion is between 30-50%, and the share is basically two times that of Adidas. At present, Nike's top soccer stars include C Luo, Neymar and so on. Adidas includes Messi, Suarez and so on. But the flow of Nike's top stars is better. It promotes the effective dissemination of brands. For example, C has a higher degree of enthusiasm on social platforms such as Facebook, Twitter and Instagram, and Messi has not yet opened Twitter.

(3) running shoes: Nike's leading daily running shoes, professional running shoes to catch up.

Nike's main running shoes series Air, Zoom, Lunar, Free, React and so on are mainly to satisfy daily running, leading the global market share of running shoes. But in the field of professional running shoes, marathon, outdoor cross-country and other professional sports shoes require high performance. Apart from Nike and Adidas, some other brands also have their own technical characteristics of differentiation, and the share is not lost. For example, in 2016 the world's most popular triathlon IRONMAN Kona World Championships, Asics, Hoka One One, Saucony, Brooks as the four major running shoes brand, accounted for more than half of the total. Adidas and Nike ranked only seventh, eighth.

However, with the development of Nike in recent years, the high performance products Zoom VaporFly Elite and Vaporfly 4% have been successfully implemented to achieve counterattack. In 2018, Nike's share rose to 14.9%, ranking second, leaving Adidas's position.

In summary, Nike's strength and stability in basketball, soccer and running shoes are steady and steady: basketball shoes are obviously better than Adidas, football shoes come from behind, running shoes share the overall share, and professional running shoes are catching up with four professional running shoes gradually, and the gap with Adidas is widen. From the price point of view, Nike and Adidas's basketball shoes and football shoes are priced at the same price, while professional running shoes, Nike pricing is lower than Adidas, which is in recent years with Nike in recent years, with the help of the flow of money to seize the market.

Six, from four dimensions to see Nike's success factors.

(1) products: accurately grasp trends, technology empowerment products

We believe that Nike can maintain steady and sustained growth for decades. It is inseparable from the accurate grasp of the trend of the sports industry. Since the beginning of twentieth Century, the sports industry has gone through the four stages of "professional sports mass professional sports fashion trend movement", and Nike's growth has fully shared the bonus of the industry.

Nike caught the jogging craze of the US in the 70-80's. In 1972, Frank Short, the US athlete, won the gold medal in the Munich Olympic marathon project. The new Nike has adapted to the popular jogging movement, and has successfully developed Cortez shoes and Nike Marathon shoes. Among them, "Agam shoes" has become one of the classic jogging shoes. In 1979, it launched the first Air Tailwind equipped with air cushion technology, which has become an epoch-making product in the history of running shoes with its strong cushioning performance.

Nike is developing the trend of fashion trend, and is the pioneer of the sports trend line. In 1994, Nike pioneered the classic basketball shoes Air Jordan 1 Retro version, becoming one of Nike's most expensive footwear products. Since then, the brand of retro trump card Air Max has continued to exert its strength, and its number of retro footwear is far ahead of other brands. In 2002, Nike joined the Supreme for the first time and detonated the Dunk boom in the next few years. It was praised as one of the most successful joint names in the history. Since then, almost every year it has launched new products. After 2010, the major brands accelerated the introduction of joint names, such as Adidas Yeezy series and PUMA joint Rihanna. Unlike other sports brands, Nike takes the lead in its joint name and keeps it alive.

In addition to following the trend, the root of Nike's sustained growth is product strength. The company attaches importance to and continuously invest in research and development. It has developed a series of star products with core technology, including Flywire, Flyknit, Flymesh and so on, and Max technology, such as Zoom, ZoomX, Lunar, React and so on. Among them, air cushion technology is monopolized by Nike. This is Nike's biggest technological hero to take off and surpass. It has Nike Air innovation production center, more than 500 patents of Air Max series, and has about 700 thousand square meters of specialized production facilities in the United States.

Nike has a large headquarters R & D center, including innovative kitchen and sports research laboratory, which exports Nike's most advanced sports shoes design, and the latter co operates with athletes to test data. In addition, the company's R & D team is composed of composite professionals and professionals, including experts in biomechanics, chemistry and engineering, and an advisory committee composed of athletes, equipment managers, Department of orthopedics doctors and other professionals in the industry to review and improve the product and manufacturing process. Nike's new product development is at least 18 months ahead of schedule, and its project reserve is abundant, which ensures that every six months of product update and iteration speed.

Nike has a strong sense of patent protection, and began to apply for patents fourth years after its establishment, while Adidas was 20 years later. Compared with the effective patents in 1999-2019 years: Nike 4053, Adidas 3101; Nike accounted for 74.5% of the number of new applications in the past ten years, the application speed was faster and exceeded that of ADI. Sub category, Nike footwear patent accounted for 47%, ADI footwear accounted for only 28.5%

(two) marketing: mining potential stars, marketing efficiency first.

Compared with the leisure brand, the marketing difference of sports brand is embodied in the scarcity of sports marketing resources. The functionality of sports products is usually displayed by professional athletes, and the publicity effects of athletes of different levels such as superstars, general stars and ordinary players differ greatly. Among them, top competitions and stars are extremely scarce. Therefore, it is very important for the growth of sports brands to get the resources of head players and sports events.

In order to maintain the professional sports image of Nike brand, the spokesman insisted on choosing professional athletes for a long time. Until the signing of supermodel Karlie Kloss in 2014, the entertainment star endorsement was launched, and in 2017, the first spokesperson for Dongyu Zhou to become a female sports product was significantly slower than other international and domestic sports brands. There is no shortage of top-grade traffic and heavy traffic, such as Nike Off-White series, Drake, Jay Chou and many other traffic stars in 2018. Based on CONVERSE's own brand positioning, it is mainly based on hand traffic entertainment stars.

1, tap new potential stars and export brand culture.

Nike is best at mining potential young athletes or sports stars and signing long contracts to grow together with brands. One of the most successful cases is Michael Jordan. In 1984, Jordan entered the NBA with the flower show. Nike scout recognized its great potential and provided it with a huge NBA contract of 2 million 500 thousand dollars for 5 years, and launched its exclusive Air Jordan product. Jordan had 25% stake in the corresponding equity and AJ shoes. Then Jordan played the strongest rookie in the history and changed to the strongest player in basketball history. The flying name became louder and louder. At the same time, under the promotion of NBA global strategy, Nike brand was highly sought after.

Nike has a perfect incubation system, and has been able to tap the potential young athletes, including 15 year old tiger Woods, 13 year old Nadal, Federer, 15 year old Li Na, 18 year old Liu Xiang and so on. With the system of professional scouting team, global training camp and youth tournament, Nike has efficiently excavated sports novas, and found a way to break through in the sports industry with scarce quality marketing resources.

The team of Scouts: Nike has a professional sports marketing department in various countries, responsible for mining young potential athletes. Most of the team members have sports professional background, such as retired athletes or coaches, there are many former champions, localization Scout is easy to track and track in time. Nike has more than 30 people in China's sports marketing department. It has been running in all kinds of sports associations, sports schools and sports venues for a long time.

Global training camp: from 80s to the present, there are more than 850 training camps and thousands of top coaches in the world, covering basketball, football, track and field events, providing professional sports training for more than 90 thousand young people in Greater China, North America and Europe each year, and inviting famous stars to teach in person. The Greater China training camp is solely authorized to operate ISG, which is part of the largest sports training USSC in the world.

Youth events: Nike sponsors or sponsors youth events, and tap potential stocks. Nike university athletics elite challenge signed eight universities in the country, holding track and field events every year to reserve athletes. Over the past 9 years, NUEC has been born with many domestic track and field stars. Two of the four men's relay teams in Asian records have been signed by NUEC universities (Su Bingtian and Mo Youxue).

After excavating potential young athletes, Nike provides a full range of professional services to help athletes grow. Nike provides shoes and clothing equipment, and the sports marketing department will communicate with the company after the match and feel the feedback and feedback to the company to further grasp the needs and improve the products. Nike regards athletes as partners and acts as a "broker" to provide a more thoughtful and humanized service experience, greatly improving the distance between brands and athletes. The most typical example is Nike's two sustained support for Liu Xiang's retirement due to injury and retirement in 2015, mobilizing resources to help Liu Xiang to the United States.

Nike founder NAT mentioned in "shoe dog": "we sell not only a product, but also a concept, a spirit", and Nike's sportsmanship output can not be separated from the accumulation of many elite athletes. In recent years, the increasingly popular classic section is the important embodiment of Nike's "Just Do it" brand concept recognized by consumers. Nike uses "repetition + limit + feelings" as a marketing tool, and continues to create classics. Thanks to the Jordan effect, the Jordan series has the largest number of re engraved products. According to Flightclub statistics, there were 68 AJ 1 copies sold in August before 2018, and the possession of proprietary technology is the basic guarantee for Nike to carry out numerous re engraving.

2, attach importance to top competitions and emphasize marketing efficiency.

The top event of global traffic aggregation is very scarce. Nike usually adopts ambush marketing to avoid confrontation with the major sports brands in the sponsorship price war, but cleverly use the marketing tools such as social platform, advertising and so on to win the eyeballs and get better results at lower cost. Nike has been trying hard in the past. Thanks to Nike's emphasis on marketing efficiency, Nike's wide announcement rate has been lower than Adidas since FY2000, and has widened the gap after FY2009. The rate difference between the two FY2018 has expanded to 3.9pct, but Nike has achieved faster growth with lower input.

The sponsors of Olympic Games can be divided into three levels: International Olympic Committee partners, official sponsors, and official suppliers. Nike has never been an official sponsor of the Olympic Games, most of which are official suppliers. In recent years, the official suppliers of the Olympic Games in Athens, Beijing and London are Adidas, and Nike has not made any official sponsorship. In 2012 London Olympic Games, Nike shooting series of advertisements, athletes in the global "London" place competition, the communication effect is very good. Later, according to the Internet survey, 37% of the 1034 American consumers interviewed thought Nike was the sponsor of the London Olympic Games, and Adi accounted for only 24%.

Prior to 2004, the NBA government had designated exclusive sponsors, but at the same time allowed other brands to sponsor jerseys without exclusiveness. NBA sponsors went through the Champion era (1989-1997), the melee times (1997-2004), the Reebok era (2004-2006) and the Adidas era (2006-2017), but at that time, the sponsors were not allowed to show sponsors LOGO, and Nike took the initiative to withdraw in the era of melee. In the 2017/18 season, Nike became the exclusive sponsor of the NBA jersey for $1 billion and received the authorization of LOGO to get on the team uniform.

(three) channel: strengthen channel management and enhance shopping experience.

In the process of global expansion, Nike is mainly relying on local distributors in a few competitive markets, such as Britain, France and Japan. Currently, there are 10-20 outlets in the world, and more than 10 thousand outlets in China. The large distributors include BELLE International's sports company, Baosheng international and Baocheng international. In 2017, Nike put forward a new Nike direct user experience in the "three double strategy". In the future, it will continue to shift its focus to direct sales and e-commerce sales, and will reduce the number of cooperative dealers from 3 to 40.

At present, the distribution channel still occupies the main body of Nike brand sales, but the direct store is growing rapidly. FY2010-2019 Nike brand distribution revenue increased from $13 billion 880 million to $25 billion 420 million, CAGR was 7%, accounting for 68% of the main brand revenue. In recent years, Nike has continuously increased its investment in Direct stores. The number of Nike's global direct outlets has increased from 230 in FY2004 to 951 in FY2019, and CAGR to 9.9%. Among them, the number of Direct stores in the United States has increased from 100 to 246, CAGR is 6.2%, and overseas direct outlets have increased from 130 to 705, and CAGR is 11.9%. FY2010-2019 Nike brand's direct revenue increased from 2 billion 480 million US dollars to US $11 billion 750 million, CAGR reached 18.9%, and its annual growth rate exceeded that of distribution. FY2020Q1

Nike electric business has maintained rapid growth, FY2013-2019 business income increased from 520 million US dollars to 3 billion 800 million US dollars, CAGR reached 39%, the proportion of direct income increased by 20PCT to 32%, the proportion of total income increased from 7.7pct to 9.7%. Nike set up a digital sports department in 2010, which is at the same level as the group's R & D and marketing departments. We can see its importance. Nike launched its digital transformation in China in 2013, and actively collaborated with Amazon, Facebook, Alibaba, Tencent and other Internet giants to expand their online application platforms and shopping channels.

Nike +: representative digital products have been expanded to Nike +Running, Nike +Training, Nike +Basketball and other APP, and Nike +Fuelband, Apple Watch Nike + wearable devices. The user interacts with the sensor after adding sensors in the sports equipment, and obtains real-time movement data such as walking speed, distance and energy consumption, and uploads the data to Nike + community for communication. At the same time docking Nike electric business, to achieve data, membership services, professional guidance, community exchanges, brand activities, electricity providers in the integration of the sports multifunctional digital platform.

SNKRS:2015 first launched in the US in, is a publicity and shopping platform for footwear. Users registered with Nike Plus members. They can get hot shoe information, exclusive stories and exclusive privileges in SNKRS. SNKRS is in line with Nike's strategy of expanding DTC, presenting shoes directly to consumers, especially Nike's intention to increase the intensity of SNKRS shoes, which is very important for Nike shoe fans. At the end of 2017, SNKRS landed in China and quickly became one of the main sales channels for footwear.

WeChat small program: in September 2018, Nike official WeChat small program was formally launched, including the member store, the latest trend (preview the latest members' interests and upcoming latest products, understand product design story), manage Nike Plus members' personal data, get personalized membership products and services online, and provide another convenient digital platform for Nike Plus members.

Digital stores: in 2017, Nike and Tmall opened two intelligent stores, the first digital promotion of Nike stores. In 2018, we opened the House of Innovation concept store in Shanghai and New York, integrating digital and offline services. Shanghai store is the first fully mobile payment store in Nike, China. Consumers can scan the body models and two-dimensional codes on clothing through Nike APP, and can also choose their favorite styles directly on APP, and the goods will be sent directly to the fitting room or pick up points.

(four) supply chain: globalization + centralization + information.

Nike started with agents, using light asset operation mode, namely, production outsourcing, warehousing and transportation, outsourcing. As of FY2019, there are 6 distribution centers in the United States, 4 of which are self operated, and 62 overseas distribution centers (as of FY2018), including Belgian Laakdal, China Taicang, Japan Fuli and other core distribution centers. Taicang logistics center CLC is Nike's largest logistics center in Asia. After the expansion in January 2019, the area increased by 30%.

Nike has experienced four overseas capacity transfers, and began to select Japanese suppliers based on production quality. With the yen appreciation, it shifted to factories in Korea and Taiwan in 1975. As labor costs climbed to 80 years, China turned to be one of the first international enterprises to turn production capacity to China. Vietnam began to deploy Vietnam in 1995, and accelerated to Southeast Asia in 2008. In 2010, Vietnam's shoes output exceeded China. Nike was one of the first brands to transfer capacity to low cost overseas, and triggered a wave of overseas labor. Nike's global supply chain fully shared the benefits of low cost and tax concessions overseas.

As of FY2019, Nike footwear was provided by 112 factories in 12 countries. The clothing category was provided by 334 factories in 36 countries, compared with FY2014 footwear suppliers, which fell by 38, and garment suppliers decreased by 96. In recent years, with the increasingly stringent environmental protection and the quality of consumption, Nike has taken the initiative to eliminate the tail suppliers, and the trend of supplier centralization is obvious. The number of footwear suppliers in China, Vietnam and Indonesia accounted for 38%, 30% and 15% respectively. The number of Vietnamese suppliers in FY2010 accounted for 37%, which surpassed China for the first time; the number of footwear suppliers in Vietnam, China and Indonesia accounted for 49%, 23% and 21% respectively; Vietnam accounted for more than twice as much as China, and Vietnam's capacity was the most benefited under the trend of China's capacity shifting overseas to FY2002.

In 2014, Nike launched the global plant map system. The system showed that as of February 2019, the finished products suppliers of Nike included 525 factories in 41 countries, and raw material suppliers including 11 countries and 76 factories (referring to Nike's designated independent contractors and suppliers). China, Vietnam and Indonesia have 109, 105 and 38 finished product suppliers, 12, 17 and 6 raw material suppliers, respectively. On the products, China's clothing, shoes and equipment are relatively balanced, Vietnamese clothing varieties are more, Indonesia mainly provides clothing and shoes. In addition, Nike has 42 production plants in the US, mainly supplying clothing.

In 2000, Nike started the upgrading of supply chain information -- the NSC project, which is applied to the new and single supply chain information system in the world. Nike completed its upgrading in 2006 with HP and Accenture, with new countries or regions joining in every year. As a global system, it has covered the United States, Canada, Europe, the Middle East, Asia Pacific and South America. The full implementation of NSC has greatly improved the timeliness, accuracy and synergy of all the links in the supply chain, and has also made Nike's fine management of supply chain ahead of other brands. In general, the production cycle of Nike does not exceed 16 months, and the production cycle is shortened by half according to the "three double strategy" proposed in 2017.

　　 Seven, investment proposals

To sum up, we are optimistic about the sports track, because the sports industry has a large scale, a high degree of prosperity and a good competitive structure. It can be the largest market maker in 70s. It was founded in 70s of last century. In 90s, it relied on technology and marketing to complete a perfect counterattack against a series of old brand sports brands. After 90s, through the exploration of single brand and multi brand, Nike's main brand became the most dazzling leader. We believe that Nike's resistance to the US market is the first in the world and globalized. Especially after 2010, the support of the Chinese market is the two largest catalyst in the valuation and market value of the company. Although the systemic risks such as the financial crisis are unavoidable, and the impact of competitive products on the market performance, long-term stable fundamentals and solid moat help companies have the ability to cross the bear. In particular, compared with Adidas, the two growth rates are similar, but Nike is more robust, the gap is widening, and the cost control rate is good, and net interest rate continues to lead.

Under the strong Matthew effect of the industry, the concentration of global sports shoes and clothing continues to improve, and the share of Nike has also fluctuated, especially in overseas markets. In the United States, Nike's share is far ahead. In Europe and Adidas, each other has its ups and down. In China, it continues to improve and always takes the lead. Nike takes the lead in the fast growing category of sports shoes. Basketball shoes have obvious advantages, football shoes come from behind, running shoes are in the lead, and professional progress is remarkable.

We believe that Nike's successful experience brings the following enlightenment:

(1) the huge domestic market provides the brand with soil. Although the development of sports brand is not necessarily related to the size of its national market, a huge domestic sports market will undoubtedly provide obvious support and convenience for local brands. Nike has seized the tide of vigorous development of the mass movement in the United States. Up to now, the awareness and participation of sports in the United States continue to be prominent throughout the world. The scale of sports market is far ahead, providing super long dividends for Nike. After gaining power in the familiar local market in 90s, it has already qualified for the world. Especially for sports power, brand addition is more obvious, mainly reflected in the binding of marketing resources, such as Nike and NBA, Adidas and European football.

(2) technology and marketing are the key to surpass competitors and maintain their advantages. These two points were perfectly displayed in the process of Nike's 80/90 era against Reebok. In the field of sports shoes and clothing, having an epoch-making evergreen technology breakthrough can bring a very obvious long tail bonus, rich in technology content, and providing sports experience improvement products, which is more robust than those with high fashion elements. While increasing fashion elements will benefit from the increasing bonus of sports and fashion, leading or trending the trend will significantly enhance brand power and sales, but for single brand, on the one hand, it will face the risk of changing fashion and growing unsound. On the other hand, it is difficult to shape the brand power of hard core in professional sports, which is a necessary condition for the steady growth of sports brand.

In terms of marketing, the scarcity of sports marketing resources and the amplification of head effects are crucial to the brand, and the key successful marketing will even bring about the effect of turning the tide. Nike has the advantage of leading new star mining capabilities. Strong brand power can attract each other with stars, strong financial resources ensure the utilization of sports resources, and establish a very strong marketing barrier in front of other brands.

(3) accurately grasp the trend of the industry and develop the unbiased discipline in an all-round way. Since the beginning of the last century, sporty shoes and shoes have been experiencing professional professional sports shoes and apparel - popular professional sports shoes and clothing - Sports Fashion expansion - the trend of sports is becoming more and more intense (not iteration, but the expansion of industry connotation). Nike has not been lagging behind any major nodes, enjoying the dividends of the industry, and quickly grasping and even leading the trend of each stage, achieving steady development. For example, at the beginning of the establishment of Nike, the public has always been concerned about the products that are suitable for daily life. Therefore, the trend of sports and leisure in the 80/90 era has been contrasted with Adidas. In the 90s of last century, it realized the value of classic money, began to test the water and restore it to the ancient world, followed by repeated engraving and joint names. After 2010, it led to a high tide of sports. Thanks to this, Nike can move forward in professional sports, sports, leisure and sports, rather than focusing on some brands.

(4) actively embrace new channels and develop digital channels. Unlike many other old leading brands, the brand, mode and concept are getting old. Nike has always maintained keen acuity and innovative awareness of the new trend of the industry. It has not only extended the electricity supplier to the important growth, but also expanded the brand effect and the retail efficiency of the direct operation, upgrading the line to cope with the impact on the line, and protected any place with the bonus of growth, so as to ensure the brand's strong position in the whole channel. At the same time, we should actively promote digital marketing, membership traffic, new retail under the line, and so on. It can be seen that Nike, which occupies the leading position for decades, is still the best player in sports brand.

Investment suggestion: China is already the second largest sports market in the world, and has great potential. After 2000, the popularity of mass sports has also spawned a number of excellent local brands. Similar to Nike's huge American sports market, it is bound to share the continued growth dividends of the future industry. As China moves towards a sports power, it is bound to generate global marketing resources for local brands to tap and cooperate. After the industry shuffle, the Matthew effect is even more evident no matter whether it is brand effect or the channel dividends under the online and offline channels. It is recommended that Anta sports, which has various competitive advantages in the form of leading competition with the dragon head, will maintain a high price and good performance in the mass market. It will continue to harvest two leading brands with strong dominance in the high-end sports fashion brand FILA and the potential brand training and outdoor brands. As well as Lining, who has successfully detonated the country and the fashion strategy, can refer to Adidas in the late 90s and PUMA in 2014. The base of professional sports brand power is still in existence, and the diversification of image brings the expansion of consumer groups and ushered in a continuous high bonus period.