New Beijing News Beike Finance News (Reporter Wang Zhenzhen) After the global leadership change, Nike's leadership in Greater China has also undergone changes. On October 12th, a reporter from Beike Finance of the New Beijing News learned that Dong Wei will serve as the Chairman and CEO of Nike Greater China.
According to a statement released by Nike China, Dong Wei joined Nike China in 2005. Over the past decade, she has served as Nike's Global Vice President and General Manager for Greater China, responsible for formulating long-term goals and growth strategies for the region. It is worth noting that Dong Wei not only serves as the Chairman and CEO of Nike Greater China, but also as the Global CEO of Nike's new brand ACG (All Conditions Gear).
At the juncture of the change of leadership of Nike Group's President and CEO on September 19th, the dual appointment of Dong Wei not only recognizes him, but also highlights the importance attached to the Chinese market. Since Nike's poor revenue performance in the North American market in recent years, the Chinese market, which has achieved positive growth for seven consecutive quarters, is becoming increasingly important to Nike. In the fiscal year 2024, the North American market, which accounts for approximately 43% of Nike's revenue, saw a 1% year-on-year decline in revenue, while the Europe, Middle East, and Africa region, which accounts for 28%, only grew by 1%. The Chinese market, which accounts for 15%, saw a 4% year-on-year increase in revenue to $7.545 billion.
The latest disclosed performance for the first quarter of fiscal year 2025 shows that Nike, which is undergoing a transition from a new CEO to a new one, is facing a difficult time in terms of performance. For the three months ending August 31, 2024, Nike's revenue decreased by 10.4% year-on-year to $11.59 billion, and its net profit decreased by 27.6% year-on-year to $1.05 billion; The revenue in the North American market decreased by 11% year-on-year to $4.83 billion, while the revenue in the Europe, Middle East, and Africa region decreased by 12% year-on-year to $3.14 billion. The revenue performance in the Chinese market exceeded expectations, but also decreased by 4% year-on-year to $1.666 billion, ending seven consecutive quarters of positive growth.
Against the backdrop of global sales contraction, the less affected Chinese market remains the most anticipated. In addition to maintaining its original advantages in sports shoes and clothing, Nike has also announced an important strategic adjustment. Creating a new sub brand ACG, targeting outdoor sports, Dong Wei will lead the global ACG business in product, brand, and sales, accelerating the development of the ACG brand in both the global and Chinese markets.
Regarding this, Cheng Weixiong, an independent analyst in the fashion industry and founder of Shanghai Liangqi Brand Management Co., Ltd., believes that the current outdoor sports market in China is in a state of explosive growth, especially from the operation of brands such as Ancestral Bird and Desante under ANTA Sports. Therefore, it is necessary to let someone who understands the Chinese market manage a new brand. Nike also has the intention of "starting from the Chinese market and seeking useful experience up close". In addition, in recent years, the Chinese market has indeed been worth learning from for international brands in terms of commercial innovation. "But to be honest, the competition in the Chinese market is still a big challenge for Nike. In particular, the current brand matrix of Anta Sports in the Chinese market has surpassed that of Nike China. Using Chinese people to command China shows that Nike attaches great importance to the Chinese market."