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China’s Fight With The NBA Likely To Impact Nike’s Sales

Reportedly, an ongoing conflict amid China and the NBA can end up impacting Nike, which has ties to the country and the basketball organization. China, Macao, Hong Kong, and Taiwan had been Nike’s fastest-expanding region for more than a year now, with the footwear manufacturer continuing to mention escalated momentum overseas for its brand and other gear. In fiscal 2019, Nike reported sales of $6.21 Billion in China, which was more by 24%, exclusive of currency, from the previous year, as per financial reports. These worries have ballooned since Tencent and Chinese state media said that they will be discontinuing broadcast of NBA games in China, after a tweet by Daryl Morey—Houston Rockets General Manager—showed support for the anti-administration protests in Hong Kong.

The tweet—which was later removed—attracted strong disapproval in the world’s second-biggest economy. Adam Silver—NBA’s Commissioner—afterward defended Morey, boosting the clash. Seemingly, Nike is the exclusive apparel provider on-court for the NBA. It has inked the 8-Year agreement in the season 2017–2018 taking from Adidas. At least one analyst already has circulated a note to customers by saying that he does not anticipate there would be any unfavorable impact for Nike due to the spat, calling any apprehensions “overblown.”

Similarly, Nike was in the news as it is the number one favorite footwear brand amongst teenagers. As per “Fall 2019 Taking Stock with Teens Survey” by Piper Jaffray, Nike maintains to be the beloved brand among teens, with Vans bagging the second position. Piper Jaffray polled 9,500 teens across the U.S., as a part of its “38th Semi-Annual GenZ Research Project.” According to Matt Powell—Senior Industry Advisor and Vice President at NPD Group—Vans is growing very rapidly than the entire sneaker market.

James Gonzalez
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EDITOR-IN-CHIEF At The Industry Research 24

James Gonzalez is a proficient individual working in the field of writing from more than 7 years. Earlier, he was working as a Business Analyst. However, his interest in guiding people on the latest business trends pushed him into the writing field. He loves to write news on diverse topics including market shares. At present, he heads The Industry Research 24’s Business Department and carries out all the administrative as well as editorial activities skillfully. All this is possible just due to his interpersonal skills and cooperative nature along with his strong team management skills. He holds the excellent ability to handle multiple projects at a time.

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