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Cut staff by 20%! Nike is still "hands on" China!
- Categories:Industry News
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- Time of issue:2020-12-01 09:01
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(Summary description)According to Nike's fiscal 2020 fourth quarter financial report, in the fourth quarter, Nike achieved revenue of 6.313 billion U.S. dollars, a year-on-year decrease of 38.14%; net profit loss of 790 m
Cut staff by 20%! Nike is still "hands on" China!
(Summary description)According to Nike's fiscal 2020 fourth quarter financial report, in the fourth quarter, Nike achieved revenue of 6.313 billion U.S. dollars, a year-on-year decrease of 38.14%; net profit loss of 790 m
- Categories:Industry News
- Author:
- Origin:
- Time of issue:2020-12-01 09:01
- Views:
Information
Life with broken arm, the world's No. 1 sports brand, is really difficult!
According to Nike's fiscal 2020 fourth quarter financial report, in the fourth quarter, Nike achieved revenue of 6.313 billion U.S. dollars, a year-on-year decrease of 38.14%; net profit loss of 790 million U.S. dollars, a year-on-year decrease of 179.88%.
In addition, the financial report also showed that during the financial reporting period, North American revenue fell 41% year-on-year, Europe, the Middle East and Africa fell 46%, and Asia Pacific and Latin America fell 42%. Only the Greater China region performed the most robustly, with revenue falling only 3%.
You know, as the world’s largest sports brand, Nike’s annual revenue exceeds 270 billion yuan and it has 76,000 employees. It has attracted countless fans in China. Its performance has grown against the trend for 6 consecutive years. A pair of shoes can be more spiritual. The guy fought for tens of thousands of yuan... But compared to the serious losses this year, Nike has to say that it is really panic!
In order to save money, Nike announced its global layoff plan in the early days, but no one thought that this time Nike’s layoffs still spread to Greater China. You know, as Nike’s current fastest-recovering and most stable market, Nike once put its counter-attack bargaining chips on the Greater China region, but now when Nike faces heavy revenue pressure, it has to spread the wave of layoffs to Greater China, this shows that Nike is really difficult this time!
According to media reports, Nike China plans to lay off nearly 20% of its overall workforce and about 400 people. It will be carried out in phases. The first phase started last week, with Beijing and Guangzhou regional offices as the main area. The Shanghai headquarters will not be affected temporarily. Also adjusted simultaneously, and many executives may leave.
In addition to the layoff plan in Greater China, the Oregonian in the United States also recently revealed that Nike has also revised its layoff plan at its global headquarters in Beaverton, Oregon-from 500 people planned in July to increase Lay off 700 people.
一
The main reason for Nike's huge performance loss is undoubtedly the epidemic this year.
Especially in May of this year, with the global outbreak, Nike reluctantly closed about 90% of its stores in North America, Europe and other places, and these stores are Nike's mainstay. With the closure of these stores, Nike's wholesale and physical retail have suffered heavy losses, basically in a state of paralysis.
Although Nike’s revenue data has rebounded in recent times, the escalating epidemic in Europe and the United States has cast a shadow over the industrial outlook. As of the morning of November 6, the cumulative number of deaths from the new crown in the United States has exceeded 230,000, still ranking first in the world. In this case, Nike wants to restore its own revenue is simply a fantasy.
Therefore, in fact, in the middle of this year, Nike has pinned its hopes on the Chinese market.
As the earliest recovery in the global market, the Chinese market has greatly helped Nike in its performance. For example, in May this year, sales in China became the area where Nike*** achieved sales growth.
In the fourth quarter, although the performance of the entire Greater China region also fell slightly, as mentioned above, the revenue of the entire Greater China region fell only 3%, which is the most stable performance in the Nike global market.
In other words, even if there is no major epidemic in the world this year, sales in China have always been Nike's most stable income. Before this year, Nike's sales in China had achieved more than 10% growth for 6 consecutive years.
In fact, it goes without saying that everyone can see how popular Nike is in China. You only need to look at the Nikes on the street where the young people’s feet are all in order to know how good Nike’s sales in China are. Even, some young people, in order to buy a pair of limited edition Nike, hesitate to fry a pair of shoes to a high price of tens of thousands of yuan!
Then, since the Chinese market is recovering so fast, and Nike has suppressed its heavyweight sales area, why does Nike’s layoffs involve Greater China?
In response to the epidemic’s troubles on Nike’s sales, Nike, like many brand retailers, is currently actively deploying digital sales and shifting traditional offline retail to online. This not only reduces offline expenditures, but also reduces online sales. The resulting sales will also greatly compensate for offline losses.
Nike also specifically mentioned in a previous financial report, "In Greater China, this approach has worked." It is planning to transfer the backlog of inventory to online promotions.
Therefore, the reason why Nike will spread the layoffs to the Greater China region this time is because the cost of physical stores has been transferred online to save resources; second, although the Chinese market recovered early, it did not meet the expectations of the headquarters. Sales declined in the fourth quarter, so in order to save more expenses, some employees in Greater China had to be laid off.
贰
In fact, under the weight of the epidemic, not only is Nike's life difficult, but almost the entire American sports industry is living a hard life!
For example, as Nike’s “good brother”, although Adidas has not revealed large-scale layoffs in the near future, it replaced the Asia-Pacific managing director Gao Jiali at the end of September, a Gao who commanded the Greater China region for nearly 10 years. tube.
Also undergoing high-level changes is Under Armour, whose China managing director Mei Yuqing suddenly announced his resignation in early September. It can be seen that under the harsh environment, the adjustment of the Chinese market is inevitable.
Compared with the sports retail industry, the sports media in the United States is also suffering the same, and bad news has come one after another!
According to the New York Times, ESPN, one of the well-known American sports media, is also planning to lay off 300 employees in the near future, which accounts for 6% of its global workforce. In addition, the 200 existing vacancies within ESPN will not be filled temporarily.
Data shows that in 2020, the investment in ESPN live broadcast copyrights exceeded US$7 billion. However, due to the epidemic, there were almost no ESPN games available from March to July. Even though some of the events have been resumed, the company is still very popular. The problem of declining rates and declining marketing.
At the same time, Disney Group, which owns 80% of ESPN's equity, is also in deep trouble. Many theme parks have closed due to the epidemic, and the film industry has also been hit hard. In September of this year, Disney just laid off 28,000 employees, so it is difficult to have spare blood to provide assistance to ESPN.
Even big sports media such as ESPN are facing the dilemma of layoffs, not to mention many small media, deaths, injuries, and violent layoffs are everywhere.
Conclusion:
2020 can be regarded as condensing the "essence" of the past hundred years: the Spanish flu in 1918, the Great Depression in 1929, the opening of the Iron Curtain of the Cold War in 1947, and the 1960 African American riots all caught up.
East and West economies have suffered varying degrees of impact. In this context, powerful giants such as Nike are also busy layoffs and embrace online.
For ordinary people, what *** can do is to make long-term preparations, adapt to changes, embrace changes, transform and upgrade, and save themselves like a company, or wait for the company to lay off you?
Please remember that the new crown will redefine an era just like World War II, affecting our lives. In the midst of a torrent, it is never too late to seek change.
The most terrifying thing is that the ashes of the times fall on you, but you never seek to change!
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