What's Nike's plan to boost sales in China?

Nike's plan to boost sales in China involves several strategic initiatives aimed at revitalizing its market position and addressing the challenges posed by intense competition and shifting consumer preferences:

1. **Focus on Product Innovation**: Nike is emphasizing product innovation, as evidenced by the successful launches of the Peg Premium and Vomero 18. Such innovations help the company stay ahead in the market and attract consumers looking for the latest and greatest athletic products.
2. **Strengthening Direct-to-Consumer Channels**: Nike is investing in its direct-to-consumer (DTC) sales strategy, which includes owned-and-operated stores and its website. This approach allows for more control over the consumer experience and the ability to present products at full price, which can help maintain brand integrity and potentially improve margins.
3. **Marketplace Alignment**: The company is working to align both direct and wholesale channels to provide a consistent consumer experience. This integration is crucial for creating a cohesive brand image and ensuring that customers have a positive experience regardless of the channel they choose.
4. **Inventory Management**: Nike is taking proactive steps to clean up the marketplace, particularly in Greater China, to ensure a healthier inventory and better brand positioning. This involves managing overhead tightly while increasing demand creation investment, which can help to reduce waste and improve the overall efficiency of its operations.
5. **Long-Term Strategy**: Despite short-term challenges, Nike remains committed to its long-term strategy in China, which includes elevating product storytelling and improving retail presentation. The company is optimistic that these efforts will lead to a rebound in sales and market share gains.
6. **Digital Sales Growth**: Nike has reported strong growth in its digital sales, which is a positive indicator for the future. The company's focus on e-commerce and direct-to-consumer sales is likely to be a key driver of growth as consumers increasingly shop online.

In summary, Nike's plan to boost sales in China involves a combination of product innovation, strengthening its direct-to-consumer channels, aligning its marketplace, improving inventory management, sticking to its long-term strategy, and driving digital sales growth. These initiatives are designed to address the current challenges faced by the company in the Chinese market and position it for future success.