Nike’s market shares are still suffering in China, where the country’s consumers are patriotically choosing to buy from homegrown brands instead.
While Nike’s recent share price has beaten expectations recently due to increased consumer spend as a result of sporting events, the retailer is still falling short in China.
Chinese consumers have rallied around local sportswear brands after Nike denounced the alleged human rights abuses committed against the country’s Uighur muslim population in Xinjiang in late March.
This has resulted in sales of homegrown brands rising dramatically in the wake of the controversy, with one local sneaker manufacturer seeing sales rise 250 per cent according to Bloomberg.
The political tensions have meant that Chinese brands such as Anta Sports Products Ltd. and Li Ning Co. are being bought over the US retailer.
The two Chinese companies have supported using yarn from the controversial region of Xinjiang and have gained market shares as a result of Chinese consumers avoiding brands that have condemned the alleged human rights abuses.
Anta has also been picked as the official sports sponsor of the Beijing 2022 Winter Olympics, prompting estimations that the company’s stock will grow even more in the lead up.
The brand’s valuation has climbed to an impressive market value of over $60 billion recently amid the boycott.
“There is definitely some bitter aftertaste among Chinese consumers since the Xinjiang cotton boycott,” Bloomberg senior analyst Catherine Lim said.