Zhou Zhuang/Wen
The children's sports market is becoming a new blue ocean.
According to Euromonitor data, the size of the children's clothing market in 2022 is 237.4 billion yuan, with a CAGR of 9.0% from 2010 to 2022. Its proportion in the overall clothing market has increased from 6.2% in 2010 to 9.5% in 2022.
Meanwhile, under the catalysis of policies such as double reduction, children's sports are increasingly receiving policy attention, and the market size continues to achieve high growth rates. The share of children's sports shoes and clothing in the sports shoe and clothing market has increased from 7% in 2015 to 10% in 2022, with sales reaching 38 billion yuan in 2022, a year-on-year increase of 7%. In recent years, the growth rate has continued to lead in segmented tracks such as men's/women's sports.
Nike is one of the best among them.
According to Nike's latest quarterly financial report, Nike's children's business in Greater China has performed well, especially in running and basketball products. In this year's Tmall 618 Shopping Festival, Nike Kids ranked first among brands and stores in the same category.
And this company is still deeply cultivating the children's market, supporting every teenager to unleash their potential and pursue their dreams.
China Insight
Nike's investment in the children's market is reflected in multiple aspects.
On the product side, the brand has launched a new product, Nike Kids Crosscourt, featuring the Nike Hexagonal Boy. This is a product that innovates through deep insights from the Chinese market.
According to the daily habits of Chinese students in school, a pair of shoes often needs to cope with various sports in physical education classes. Therefore, a multi-functional "hexagonal youth" that can handle various sports is more suitable for the needs of Chinese children in physical education classes than running shoes or basketball shoes that have their own strengths.
Specifically, the combination of shoelaces and heel straps can better ensure the wrapping of the foot inside the shoe. The circular pattern on the sole provides all-around grip protection, making it easy to cope with various challenges in physical education classes.
Children are not miniature versions of adults. They have unique physiological structures and exercise patterns, and have different perceptions of the world. Therefore, it is not simply a matter of 'shrinking' adult products. We have always emphasized the Kids Right concept, which means that everything should be for children, starting from the youngest age, helping children move, play, and even choose some high-intensity sports. We pay attention to every need that children show at every stage. Nike will conduct targeted research on the needs of these children, combine research data and market insights, and help us achieve product design and innovation. Manager Hu Zhifeng explained the development logic of the Crosscourt series in this way.
Nike is still intensifying its efforts to build a research and development system for the Chinese market.
For example, as the Nike Sports Research Lab (NSRL) located at the Shanghai headquarters in Greater China gradually lands, it will focus on the unique needs and potential opportunities of Chinese daily runners, basketball players, and other groups, and use sports technology to transform local insights into products and services to better meet the comprehensive needs of Chinese consumers, including children's products.
We will discover the exercise data of Chinese children of all ages in their daily lives through research, maximize their potential, and help children perform better in both daily exercise and sports competitions. We will also focus on how to study the characteristics of Chinese children's development to make shoe types and other products more suitable. Such localized insights can better help us match shoe types and clothing styles, so that these sports shoes and clothing equipment can better meet the physical and exercise needs of Chinese children, and better serve them, so that they can find products and services that meet their physical development stages at every stage of their growth process, "said Hu Zhifeng.
On the basis of solid customized products in the Chinese market, Nike is also increasing its investment in marketing the children's sports market.
In the back of school season, Nike launched a new season of the "Parents Speak GO" brand story, which truly presents the contradiction and collision between children's competitiveness and potential and parents' anxiety about their children's participation in sports under external pressure. It showcases the unlimited potential and attitude of children in sports, as well as the positive impact of sports on their growth process. It encourages parents and children to embrace challenges together, dare to pursue dreams, and unleash more potential in sports.
The psychological and mental state of children is also different from that of adults. In addition to product innovation, we will also create some innovative points for children's minds to serve and motivate them. This year, we put forward the slogan 'Difficulties bring strength', hoping to inspire them to be more daring to strive and win, "said Hu Zhifeng.
On August 22nd, LEGO Group and Nike announced a multi-year partnership to celebrate the exciting new opportunities that creative play and sports bring to children and families around the world.
Specifically, the collaboration will start next year and may see a series of joint products, content, and experiences that combine the imagination of LEGO bricks with Nike's "Just Do It" spirit, inviting all children to participate in play and sports.
In addition, Nike is committed to continuously providing a stage for Chinese children to pursue their dreams and challenge themselves. As early as 2017, Nike partnered with the Shanghai Marathon Organizing Committee to jointly organize a new running event for children and families - the Shangma Speed X Series Nike Children's Run, which has been held six times so far. Within six years, it has gradually become a popular brand of parent-child sports events loved by parents and children. On September 8, 2024, the Shangma SpeedX Series · 2024 Nike Children's Run will officially start shooting at the Oriental Sports Center in Pudong, Shanghai, reigniting the enthusiasm of children and parents for sports.
Blue Ocean Market
Another major background for Nike's increase in the Chinese children's market is the growth potential of this market.
Under the "double reduction" policy, the emphasis on quality education has increased, which is beneficial for the overall development of the sports market. For example, the Shenzhen Education Bureau has specified that from January 1, 2024, schools in compulsory education will offer one physical education class per day.
At the beginning of 2021, Beijing issued 20 measures to strengthen physical education in primary and secondary schools and enhance students' physical health. These measures explicitly encourage schools in the basic education stage to offer one physical education class per day, primary schools to have at least five physical education classes per week, junior high schools to have 4-5 classes per week, and high schools to have 3-5 classes per week. In 2022, the newly revised Sports Law added provisions such as "ensuring that physical education classes are not occupied" and "guaranteeing that students participate in at least one hour of physical exercise every day during their school years", which legally safeguard the rights of young people to participate in sports activities.
These measures undoubtedly provide a "reassurance pill" for brands that want to increase their presence in the children's sports market.
Nike clearly sees this opportunity. We are very confident in the entire children's business in China. We have a very clear view of children throughout China, whether it is the participation rate in sports (increasing), the sports projects they participate in (expanding), or the support of millennial parents for their children's sports spending and time accompanying them, as well as the policies introduced by various levels of government in our country, all of which are very good at promoting children's sports participation and allowing them to spend more time on sports, "said Hu Zhifeng.
In response to the constantly emerging new demand in this market, Nike has also made sufficient preparations.
Consumers have such demands, so we should not let them get involved. By delving deeper into these demands and providing more products, marketing stories, and overall retail channel layouts, we can better serve these growing demands. Whether it is the demand for more participation rates or the demand for more sports projects, they can all be reflected in our product marketing stories and retail layouts, "explained Hu Zhifeng.
He also gave examples of skateboarding and street dance projects. We have had skateboarding stories in our recent episodes ("Mom and Dad Say Go"), and we also have product displays of this skateboard in our retail stores. We have also showcased and provided services for our skateboard series in our stores. This is the demand of consumers, and Nike must constantly explore and serve their needs, "said Hu Zhifeng.
Winning the initiative
Looking back, Nike's various efforts in the children's market are inseparable from the company's accumulated innovation capabilities, winning sports spirit based on the brand core, and in-depth insights into localized markets.
Taking product development as an example, Nike Kids' product development logic can be divided into two levels: firstly, how to make universal classic products more suitable for children? Secondly, how to make the product more suitable for children in localized sports scenes in China?
The Nike Kids Pegasus 41 series products launched by Nike this year are the first innovative breakthrough under the research and development logic. While retaining the classic design language, the Pegasus 41 series products pay more attention to children's running wear and physiological growth needs in product design. Compared to the Pegasus 40 series, the Nike Kids Pegasus 41 uses the same design language as adults in terms of shoe shape. The overall design of the product is based on children's running and physiological growth needs: the air cushion is moved from the forefoot to the hind foot, and the forefoot of children is treated with a foam sole, which can provide stable grip and is very suitable for running children. It can run more steadily and safely; In addition, this product features a convenient tongue design for children to put on and take off, a duckbill design for the heel, and an engineered mesh design for children, making the shoes more lightweight and breathable, suitable for children to run outside.
In order to better serve children, Nike has set up a complete team in China, including research and development, products, marketing, channels, e-commerce, etc. The Nike China Sports Research Laboratory mentioned earlier will specifically invite athletes to the laboratory to design and innovate products that are suitable for Chinese consumers and athletes based on their performance, considering different body types, running postures, and sports postures to create product designs that are more suitable for the local market. In addition, Icon Shanghai, which has already settled in Shanghai, will also be helpful for expanding its market in China.
In addition, Nike always maintains close contact with athletes and listens to their voices. Hu Zhifeng said, "For Nike, athletes have always been one of the most important advantages, and Nike Kids has been committed to inspiring more teenagers to be inspired by Nike athletes and their stories and engage in sports
In order to achieve this, Nike is also sparing no effort in signing contracts and cultivating new generations of athletes. Zheng Qinwen, who made history in women's singles tennis at this year's Paris Olympics, was attracted to tennis by the performance of tennis legend Li Na in her childhood, and eventually stood on the podium representing the highest honor. Nike has always been by her side; In addition, Zheng Haohao, the youngest skateboarder to represent China on the Olympic stage this year, is also one of Nike's contracted athletes.
In addition, for emerging sports such as street dance and skateboarding, Nike will support more young dancers and skaters to showcase their talents on more stages through innovative products and unique event experiences. In April of this year, the brand launched its first children's skateboarding shoe, the Nike SB Day One, designed specifically for children, helping the next generation of skateboarders conquer the world of skateboarding.
Nike hopes to reach a consensus with all consumers: Nike supports every athlete to constantly challenge themselves and bravely pursue their dreams. For Nike's children, we hope to inspire them to pursue their dreams and achieve victory while also allowing them to enjoy the fun of sports, "said Hu Zhifeng.
Overall, Nike has gained an advantage in the children's market, and its systemic advantages will take this market further away.