The world economy is going downwards and a large group of companies is on the verge of facing severe consequences. Some of the companies based in China have received a signal of slower economic growth but it not the case with Nike as the sales have splurged 10% in three months, ending on 30th November.
The investors are not living in peace due to the possible implementation of the tariffs on the sneakers and clothing, which will also affect Nike, the largest company dealing with sportswear in the world.
The splurge in the sales of Nike in November 2018 has risen by 10% in comparison to the previous year. This contributed to 26% increase in China that reached this level due to the Black Friday alike-sales in the country along with the demand for the sneakers like Air Jordan. NKE or Nike is the leader of the broader economy. The shares of the company fell by 18% in the past 3 months when the wider market slipped. In fact, the shares rallied 7% after the trading hours.
The economic status in China has weakened in the past few months due to the ongoing trade war between Washington and Beijing. The dollar continued to rule the market while dominating over Yuan. This made the Products coming from the US costlier for the consumers in China. Also, the Chinese tourists were spending lesser than usual on the jewelry pieces.
According to Mark Parker, the CEO of the company, the main portion of the strategy is to take advantage of the present situation and double on the digital. Nike is looking forward to selling more clothes and shoes directly to the consumers rather than taking support from the retailers. He further mentioned that sales in this manner offer greater margins and helps retain a comprehensive control over the market.