Specifically, the annual revenue of Nike's self-operated business was $65.438+0.87 billion, an increase of 654.38+05% on the basis of unchanged exchange rate. The main driving force for the growth of self-operated business comes from the digital business growth of Nike brand 18% and the business growth of Nike self-operated store 10%, of which the revenue in the fourth quarter was $4.8 billion, an increase of 1 1% on the basis of unchanged exchange rate. Nike said, "Digitalization will be an important growth engine for Nike's business in the next three to five years".
In terms of regions, the annual revenue of Nike Greater China in fiscal year 2022 was $7.547 billion, down 9% year-on-year. "The performance of Greater China is mainly affected by the increase in inventory, logistics and transportation costs caused by large-scale epidemics." Nike said.
In the complicated and changeable environment, Nike China team responded promptly and decisively, and the logistics center resumed work within 3 weeks 100%. At the same time, with the help of diversified logistics network and local partners, as well as the inventory adjustment of marketing team based on digital channel demand, Nike Greater China digital business revenue still achieved a low single-digit growth in the fourth quarter.
Nike said that with the gradual recovery of normal production and living order in some areas at the end of April, May and early June, passenger flow and overall consumer demand have improved significantly. Despite the short-term instability, Nike is full of confidence in China's local market strategy and the long-term growth of China market.
Tang Ruoxiu, President and CEO of Nike Group, said, "We have always been optimistic about the China market and its great potential in the future, which has never wavered. We will continue to increase our investment in China, strengthen our digital business capabilities through the China Technology Center, and implement the strategy of "In China, for China" to better serve consumers in China. "
According to third-party research data, Nike is still one of the coolest and most popular brands in China market. In fact, thanks to the leading layout of digital ecology and the localization of digital innovation in recent years, Nike was able to overcome the impact of the epidemic on offline consumption and open up a new blue ocean of digital consumption. During the "Super Brand Day" held in April this year, Nike created more than 950 million viewers, which penetrated and reached the needs of 90% members. Tmall's innovative theme game "Basketball Landing, Each Echoes" and Nike China's limited number collection have attracted millions of participants and a large number of new members.
In the just-concluded Tmall "6. 18" shopping festival, Nike continued to defend its title and topped the double list-the list of shops and brands in the outdoor sports industry, and the official flagship store of Nike Children's Tmall also ranked first in the same category. During the 25-day uninterrupted live broadcast from May 25th to June 20th, the total number of Nike live broadcasts of the three official flagship stores of Tmall platform exceeded 50 million, and the average viewing stay was nearly 2 minutes, ranking first in the category of live broadcast of Tmall platform stores.
In addition, the "Nike Tmall Member Advanced Program" based on digital interactive thinking jointly launched by Nike and Tmall last year has also achieved initial results. Since the program was launched on 202 1 and 10, the number of new members of Nike Tmall has increased by 66% compared with the same period of last year.
The China market continued to improve, and the localization transformation accelerated.
Under the epidemic, offline consumption channels are blocked, and online consumption demand is strong. Nike, which is in the leading position of digital ecology, also ushered in the dividend release period.
According to the data of the National Bureau of Statistics, from June 5438 to April, the online retail sales of physical goods reached 3,288.7 billion yuan, an increase of 5.2%, accounting for 23.8% of the total retail sales of social consumer goods. In the industry's view, the epidemic has strengthened people's online shopping habits and opened up the space for consumption growth under the digital ecology.
In the construction and operation of digital ecology, Nike has already played a big game. 20 10, Nike introduced Nike.Com to China for the first time. Since 12, a complete digital ecosystem has been established, including its own digital platforms such as Nike App, Nike.com, SNKRS, Nike WeChat applet, store enterprise WeChat, NTC WeChat applet, etc. At the same time, three flagship stores and an Ole official store were laid out on the strategic partner Tmall platform.
Thanks to the early paving in the digital field, Nike's online channels have achieved fruitful results. Take NTC WeChat applet and Nike APP as examples. According to relevant statistics, as of the end of May 2022, the cumulative training courses of NTC WeChat applet launched last year reached 85,000 times, and the monthly users of Nike App ranked first in the field of clothing e-commerce and ranked first in the Apple App Store. Nike App also ranks first in the field of sporting goods.
The above achievements not only benefit from the surge of online consumption demand, but also can not be separated from a series of domestic policies and measures to promote the development of sports industry.
In 20021year, the State Council released the National Fitness Plan (20021-2025), proposing to actively cultivate outdoor sports, intelligent sports and other sports industries, and promote more new products, formats and models. On April 28th, a nationwide fitness online game was jointly launched by the Group Division of the State Sports General Administration and the Internet platform. On June 2nd, the Implementation Plan for Comprehensive Prevention and Control of Epidemic Situation and Stable Economic Growth in Beijing was officially released, which supported platform enterprises to promote new digital economy models including online fitness and expand the consumption scene of "internet plus".
Under a series of favorable policies for the sports industry, Nike continues to be optimistic about the development prospects of the China market, so in promoting digital transformation, Nike pays special attention to "localization".
In order to realize the localization development of digital innovation, Nike invested 65.438+0.3 billion yuan to build an innovation center in China-Nike Digital Technology (Shenzhen) Co., Ltd. It is reported that the center officially opened in Shenzhen at the end of 20021,focusing on building innovative technologies and data capabilities in the fields of artificial intelligence, data warehousing, digital platform, electronic payment and machine learning, enabling Nike to establish a deeper level with consumers in China.
Thanks to the Technology Center, Nike has continuously increased its digital investment in China. Recently, Nike announced that its planned transformation of its own digital platform will begin in July, accelerating the construction of a more convenient, demanding, convenient and reliable Nike digital ecosystem. For example, the newly launched Nike event experience WeChat applet will provide consumers with personal customization, offline sports experience, city event booking and other services; The NTC WeChat applet launched last year will expand the service running field on the basis of the original functions; In addition, other digital platforms owned by Nike, such as Nike App, Nike.com, SNKRS and Nike WeChat applet, will also be upgraded in the same period.
Relying on digital transformation, Nike is also redefining the boundaries between online and offline. In the past two years, Nike has successively launched four retail experiences in China market: Innovation House, NIKE RISE, NIKE LIVE and NIKE UNITE. In these digital-driven retail concept experience stores, various digital tools can help consumers get the experience of online and offline consumption.
It is understood that at present, Nike, Tao Bo Sports, Baosheng International and many strategic partners represented by Ruili, Jin Lang, Changyun and Fa Ya have opened a brand-new cooperation model based on Nike's retail concept.
In the eyes of the industry, based on the localized digital ecological construction, Nike will seamlessly connect the membership services and experiences of all offline stores. Accelerating the transformation of China's digital platform will not only provide consumers with more choices, but also export digital capabilities to partners and promote the upgrading of direct stores and joint ventures.