The end of an era. Nike is facing an epic crisis. The company’s stock has fallen nearly 80% over the past 5 years, and yesterday it was even officially announced that it will be removed from the S&P 100 index.
The reason behind this is that China, once its biggest growth engine, is now steadily bleeding. Revenue has declined year over year for about 8 consecutive quarters, while domestic brands like Anta and Li-Ning are rapidly taking market share.
At the same time, the previous CEO kept pushing for direct-to-consumer operations, which caused many distributors to give up the stores and shelf space that had originally belonged to Nike and hand them over to other sneaker brands, shifting part of Nike’s customer base.
The reason behind this is that China, once its biggest growth engine, is now steadily bleeding. Revenue has declined year over year for about 8 consecutive quarters, while domestic brands like Anta and Li-Ning are rapidly taking market share.
At the same time, the previous CEO kept pushing for direct-to-consumer operations, which caused many distributors to give up the stores and shelf space that had originally belonged to Nike and hand them over to other sneaker brands, shifting part of Nike’s customer base.
