Just in case you've been out of the loop, China's economy isn't doing so hot right now. Although it's improved slightly since August's "Black Monday," the recovery process is a slow one, and now even some of the world's biggest brands are beginning to feel the sting. Everyone except for Nike, that is.
During Wednesday's Investor Day 2015 event, Nike said that it anticipates a surge in China over the next five years. "We expect to deliver mid-teens growth in this market over the next five years, with the geography reaching $6.5 billion in revenue by the end of fiscal year 2020," Nike said.
Meanwhile, brands like Hugo Boss, Burberry, and Yum Brands (the giant behind chains like Pizza Hut and KFC), are all but floundering, according to Market Watch. Each brand experienced poor third quarter earnings due in large part to missteps such as ill-timed products launches as well as uncontrollable factors like an overall decrease in high-end consumerism.
As for Nike, it's managed to remain in the green for a number of reasons. Outside analysts point to things like the brand's willingness to really take the time to learn about Chinese customers, in turn establishing strong connections with shoppers. Elsewhere, a rapid increase in sports participation could mean even more room for growth.
"Sports participation is growing rapidly in China and Nike's category offense has only affected 20 percent of the market," a market analyst said. "Nike expects to further roll out its grass roots efforts in China to grow the business profitably."
And the beat goes on.
