Nike in China

In September 2015, US-based Nike, Inc. the world’s leading designer, marketer, and distributor of athletic footwear, apparel, equipment, and accessories, announced that the sales of its footwear in Greater China had increased by 36% and that of its apparel by 22% during the quarter ending August 2015. The news sent Nike’s stock surging by 9%. Orders scheduled for delivery between September 2015 and January 2016 grew by 30% in China.

Nike projected that its Greater China business would grow at an average of 15% a year to achieve sales of US$ 6.5 billion by 2020 while its global sales would reach US$ 50 billion. Experts said that with the Chinese government mandating sports as a growth category, Nike was all set to grow further in the market. The news of Nike performing well in a country that was undergoing macroeconomic changes and where several other companies were reporting declining revenues came as a surprise to the industry experts...