NIKE(US:NKE) Xin Lang Cai Jing·2026-01-21 09:37Core Viewpoint - Nike is undergoing significant leadership changes in response to declining performance in the Greater China region, indicating a critical need for revitalization and reconnection with the market [3][14]. Financial Performance - Nike's total revenue for Q2 of FY2026 was $12.43 billion (approximately ¥87.51 billion), showing a year-on-year growth of 1%, while revenue from Greater China fell by 17% to $1.423 billion (approximately ¥10.02 billion), with EBIT dropping by 49% [3][14]. - The annual revenue for Nike in Greater China has been declining for two consecutive years, with FY2024 revenue at $7.545 billion and FY2025 revenue dropping to $6.585 billion, a year-on-year decrease of 12.7% [4][15]. - The decline in Greater China revenue has continued for five consecutive quarters, with the year-on-year drop increasing from 10% in Q1 to 17% in Q2 of FY2026 [4][16]. Market Share and Competition - Nike's market share in China decreased from 18.1% in 2021 to 16.2% in 2024, while domestic brands like Anta and Li Ning have increased their market shares [7][19]. - Anta's market share rose from 9.8% in 2021 to 10.5% in 2024, and Li Ning's share increased from 9.3% to 9.4% during the same period, while Adidas' share fell from 15% to 8.7% [7][19]. - In the first half of 2025, Anta's revenue grew by 14.3% to ¥38.544 billion, while Nike's revenue in Greater China fell by 13.5% to approximately ¥24.9 billion [7][19]. Consumer Sentiment and Brand Image - Nike faces a high volume of consumer complaints, with 39,939 complaints reported on the Black Cat Complaints platform, significantly higher than competitors like Adidas and Anta [9][21]. - Complaints primarily focus on product quality and after-sales service issues, including shoe defects and inadequate customer support [9][21]. - The frequent quality control issues have eroded Nike's long-standing "high-end quality" brand image, as consumers increasingly compare Nike products with those of domestic brands that offer similar quality at lower prices [10][22]. Strategic Missteps - Analysts suggest that Nike's failure to adapt to changing consumer preferences for value, cultural identity, and personalization has led to its decline in the Chinese market [11][23]. - Domestic brands have successfully captured market share by aligning with local consumer aesthetics and improving product quality, while Nike has maintained a rigid global marketing strategy [12][24].