Nike Executive: ‘Nike is a Brand That is of China and For China’

“Nike is a brand that is of China and for China” stated the company’s Chief executive John Donahoe. The comment was made during a call with Wall Street analysts about Nike’s latest earnings report and in response to a question about the competition of Chinese brands.

Donahoe made “a robust defense of the firm’s business in China after facing a consumer boycott there” reported the BBC. Nike has received backlash over doing business in Xinjiang, where millions of China’s Muslim minorities called Uyghurs reside.

The BBC notes “Uyghurs have been detained at camps where allegations of torture, forced labor and sexual abuse have emerged. China has denied these claims saying the camps are ‘re-education’ facilities aimed at lifting Uyghurs out of poverty.”

Donahoe said he remained confident that China would continue to be a fast-growing market for Nike as “we’ve always taken a long term view. We’ve been in China for over 40 years.” He added, “Phil [Knight] invested significant time and energy in China in the early days and today we’re the largest sports brand there.”

BBC reports of Nike being boycotted in China:

Several Western brands, including Nike and Swedish fashion retailer H&M, recently faced a backlash from Chinese shoppers after the firms expressed concerns about the alleged use of Uyghur forced labor in cotton production.

In March, a group of Western countries imposed sanctions on officials in China over rights abuses against the mostly Muslim Uyghur minority group.

The sanctions were introduced as a coordinated effort by the European Union, UK, US and Canada.

In December, the BBC published an investigation based on new research showing China was forcing hundreds of thousands of minorities including Uyghurs into manual labour in Xinjiang’s cotton fields.

Nonetheless, Nike’s fourth-quarter earnings showed revenues doubled to a better-than-expected $12.3 billion for the three months. “That helped it bounce back to a $1.5bn profit, from a $790m loss during the depths of the pandemic a year earlier” reports BBC.

“The figures also showed that revenue in China rose to more than $1.9bn, but missed Wall Street expectations of $2.2bn.” Donahue remains confident China will continue to be a fast-growing market for Nike.