Nike is making strategic moves to enhance its appeal to China’s vast consumer base, comprising 1.3 billion people, as detailed by CEO Elliott Hill. The company plans to boost investments in China’s basketball, track and field, and football teams. Additionally, Nike is set to engage consumers with an upcoming spring collection and its collaboration with Kim Kardashian’s shapewear line through NikeSkims, reflecting a renewed focus on its product offerings.
Since assuming his role less than six months ago, Elliott Hill sought advice from Ohio State Buckeyes football coach Ryan Day on maintaining an offensive strategy. Day emphasized the importance of constant pressure across all phases of the game: executing long-range plays on offense, tight defensive coverage, and aggressive special teams play. Hill views this approach as a pertinent analogy for Nike’s current business strategy.
Hill stated that Nike’s success has always stemmed from setting trends and expanding markets, rather than merely safeguarding its existing market share. However, he acknowledged that Nike is navigating a challenging turnaround period, with difficulties persisting into 2025 and likely extending into 2026. The retailer experienced a 9% drop in third-quarter revenues to $11.3 billion, while net income decreased by 32% compared to the previous year. Despite pledging to a new strategic direction, the company has not yet counteracted the decline of its traditional franchises.
During an earnings call, Hill expressed dissatisfaction with the company’s recent performance, affirming, “We can and will be better.” Appointed last year to lead Nike’s turnaround after serving for 32 years with the company, Hill plans to implement a strategy called “Win Now.” This plan encompasses five strategic priorities, three countries, and five cities, focusing on fostering a dynamic company culture, refining the brand, diversifying beyond traditional products, improving market processes and digital capabilities, and increasing grassroots engagement with local athletes.
Recent initiatives include spotlighting Nike during high-profile events: Philadelphia Eagles quarterback Jalen Hurts wore Jordan cleats at the Super Bowl, while Kendrick Lamar, Serena Williams, and SZA highlighted other Nike brands during the event’s halftime show. Nike also maintained a strong presence during the NBA All-Star weekend in the Bay Area, emphasizing the vitality of sneaker culture.
The “Win Now” strategic plan targets the U.S., United Kingdom, and China for growth, with New York, Los Angeles, London, Beijing, and Shanghai identified as key cities. Despite a 15% revenue decline in Greater China during the third quarter, CFO Matt Friend noted plans to capitalize on the burgeoning sports interest in the region. Nike operates a headquarters in Shanghai and a distribution facility in Taicang, China, with last year’s China revenues increasing by 8% on a currency-neutral basis.
Hill highlighted significant investments in China’s major sports teams and the establishment of a product development arm, GEO Express Lane, while acknowledging heightened competition since his last visit 4.5 years ago. He concluded, “We’re still the No. 1 brand there; we’ve just got to accelerate our pace.”
This report originally appeared on Fortune.com.
