Can Nike’s leadership overhaul reignite growth in China?

What happened Elliott Hill started as CEO of Nike today, stepping in at a critical juncture as the brand grapples with a sales downturn and tanking stock price, which has declined 23.38% year-to-date. A seasoned Nike veteran who retired in 2020, Hill is now tasked with steering the iconic sneaker and apparel giant back on course — a challenge that won’t come easy. In FY Q1, Nike’s sales dropped 10% YoY to $11.6 billion ($82.1 billion), and the company amended its guidance, projecting a decline of 8% to 10% in Q2. Pressure is mounting, prompting a management shakeup in key markets like China and the US. In China, Dong Wei has been named chairwoman and CEO of Nike Greater China and global CEO of the ACG (All Conditions Gear) brand. Dong, who joined Nike China in 2005 and has been instrumental in driving the brand’s growth in the region, was recently featured on Fortune’s 2024 list of Asia’s Most Powerful Businesswomen. In the US, Tom Peddie has been appointed vice president of North America operations, replacing Scott Uzzell. A Nike veteran with nearly 30 years of experience, Peddie rejoined the company in June to head its wholesale division, signaling a renewed focus on rebuilding relationships with retailers like Foot Locker. The Jing Take Under Dong’s leadership, Nike aims to accelerate the development of ACG globally, catering to outdoor athletes and enthusiasts, a major trend in China that’s propelled the rise of trekking footwear labels like On, Salomon, and Hoka. She will also continue to spearhead Nike’s growth in Greater China. Despite recent challenges, including a 4% YoY sales decline in Greater China in Q1, Nike’s commitment to innovation remains strong. Demand for its iconic collections, especially the Jordan brand, continues to grow in China, with local consumers displaying a significantly higher appetite for new, cutting-edge products compared to other regions. Nike CFO Matthew Friend emphasized the company’s long-term outlook for the China market, noting that while short-term expectations have been tempered, the market remains crucial to Nike’s global growth strategy. With a focus on product innovation, digital platforms, and supply chain improvements, Nike is poised to further capitalize on China’s booming sports industry. These leadership changes underscore Nike’s pivot from relying heavily on retro product lines such as the Air Force 1 and Air Jordan 1, which have seen slowing sales. Nike’s strategy moving forward hinges on “newness and innovation” as it shifts away from its dependency on classic franchises. Hill, Peddie, and Dong, are now tasked with leading Nike into this new era, while also rebuilding momentum in key markets. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Can Nike’s leadership overhaul reignite growth in China?

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Published October 14, 2024

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Can Nike’s leadership overhaul reignite growth in China?