In the past two days, H&M Group’s statement of “touching porcelain” Xinjiang Cotton completely aroused public outrage in China. With the fermentation of public opinion, international sports brands such as Adidas and Nike have also been picked out as members of BCI and have made speeches about “cutting” with Xinjiang cotton.

Subsequently, “while spreading rumors to boycott Xinjiang cotton, while wanting to make money in China? wishful thinking!”, “I hope these companies that distort facts and want to make Chinese money will do their own thing”, and “Xinjiang cotton will not eat this set” became Chinese social media. The most commented on.

Affected by this news, Nike and Adi fell sharply in the capital market.

In the case of U.S. stocks rebounding last night, Nike closed down 3.39%, and the daily circulating market value evaporated about 7.1 billion U.S. dollars (about 46.3 billion yuan); Adidas fell more than 6.49% on the Frankfurt Stock Exchange in Germany on March 25 (US stocks ADR fell Over 5%), the single-day circulating market value evaporated about 3.5 billion euros (approximately 27 billion yuan), and the combined market value of the two evaporated about 73.3 billion yuan.

While a number of international brands have been denounced, A-share investors also “supported” the matter. On March 25, they actively bought shares of listed companies of domestic brands, searching for Yute, Ribo Fashion, Meibang Apparel, and Startup. Shares and other collective daily limit, Langsha shares, seven wolves, Hailan Home, Nanshan Zhishang, etc. rose among the top. Simultaneously with the A-share market, Li Ning and Anta Sports also rose sharply in the Hong Kong stock market, both rose by more than 10% during the intraday market, and Xtep International rose by more than 4%.


By zhiwo

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6 months ago

ZF does not make a move, and the heat does not exceed one month. After the heat goes down, the stock price will rise again. And 618 is coming soon, when the sales will go up again, there are too many examples before. It is not enough to shout out on the Internet to resist. The Internet has no memory. Should learn from the US measures against ZTE, ZF fines these foreign companies in accordance with regulations. Every time there are acts of racial discrimination, refusal to buy cotton produced by ethnic minorities, etc., these companies should be fined twice the annual turnover. This is much more effective than just relying on popular resistance.

6 months ago

Short-term ups and downs are meaningless, Nike on the 19th fell more than today. Talk about the long-term. Nike’s current price-to-earnings ratio is 59 times, which shows that investors have expectations of him. After all, the epidemic that affected performance is over, and his profits in Greater China have increased significantly. Since the stock price has overdrawn the performance, even if his performance increases, but the increase is not as expected, it will still fall. Nike’s stock price has tripled in the past five years, and its operating income has increased by less than 10% every year. If this incident caused his revenue in China to drop by more than 20%, it would be a big blow. Many people think that boycotting is useless, the heat will be gone in a few days, so it will not harm Nike. That’s because your expectation is that Nike Ga Bang will die. That’s really impossible. However, capitalists love talents like their fate, and the loss of single percentage is painful, so they fight so hard. Otherwise, as we always say: With so much money, what kind of work do you have? Maybe I don’t wear too many Nike Adi, personally feel that he is several times more expensive than domestic shoes, mainly because of the brand. It looks handsome to wear, and it’s high-end. After this incident, it will definitely leave a shadow. Nike Adi is far from taking photos of the NBA. Watching the NBA is for my own pleasure, not to see myself uncomfortable. Wearing Nike is for others to see (perhaps because people are poor and have no knowledge). When this brand is not so shiny in the eyes of the public, or even has a subtle touch, some people may choose not to wear it. Twenty to thirty percent of people choose this way, which Nike cannot afford. The lip service has never been of much use, and if there is a feeling of resistance in the heart, it will be terrible. So I predict that Nike’s stock price may gradually decline, depending on his first quarter and mid-year reports.

6 months ago

If you steal a diamond ring from a neighbor’s house, the neighbor has all the evidence you stole and asks you to return it within today, otherwise you will be taken to court, not only returning the diamond ring but also a fine. Will you return the diamond ring at this time? Of course it will, because it seriously violates my interests. In the same way, Nike’s stock price fell and did not come out to apologize, that is, their interests have not been involved. This is what they expected, so there is no impact, we don’t have to worry about it. What I am worried about now is that these brands will be selling at a big discount in the future, and a group of people will be tempted to rush to pay. Because one thing that cannot be denied is that Nike, as one of the leaders of “shoe culture”, still has a lot of influence in China. Moreover, when we talk about boycotting, someone will still pay for him. As far as I know, none of the sneaker platforms have removed Nike-related products. The happiest thing now is the group of shoe dealers who lie at home and drink champagne and red wine and wait for us to boycott them, and then wait for a shoe to be sold at a high price. What he said was morality, and what he said was business secretly. Therefore, it is useless to rely on our unilateral resistance. Instead, it will make those speculative ulterior motives make a lot of money. So as @李新野 said, blocking is worse than sparse. We don’t resist, we learn from the American way of dealing with ZTE in the past, and we fine these companies. If you boycott our national industry, then fine the money. The money goes into the pockets of the country, which in turn revitalizes our own national enterprise. We all have a bright future.

6 months ago

The decline in the stock prices of Nike and Adi was caused by negative news. However, short-term small fluctuations in stock prices actually affected a company far less than we thought. I would like to know the follow-up development of Nike and Adi. Regarding the attitude of these two brands, it can be said that they will be greatly affected if they lose the Chinese market! As mentioned in the question we answered before, due to the impact of the epidemic, Nike’s revenue in most parts of the world fell in the last quarter. Only in Greater China did it achieve growth and reached 51%, helping its total revenue to maintain. A positive value of 3%. The situation with Adidas is similar. Adidas’s financial report for the fourth quarter of 2020 disclosed on March 11 showed that the strong recovery in Greater China continued throughout the quarter, and the 7% growth rate in the quarter drove the entire Asia-Pacific market to grow 1% year-on-year. In the development strategy announced by Adidas for the next five years, it is also mentioned that “Greater China will become the company’s growth engine in the future. The average annual net sales in this region are expected to grow at a low double-digit rate.” So you see, how important is the revenue of Greater China to Nike and Adidas. But do you say that Nike and Adi’s earnings will be ugly next quarter?

6 months ago

I really don’t understand the stocks. But as a layman, the rise and fall of stock prices, in essence, does not have much impact on these bigwigs. Perhaps those bigwigs don’t care about it. After all, the stock price fell this time only because of the boycott of the Chinese people, which caused him to fall. After this wave of wind has passed, the stock will still be able to rise back, perhaps more. Judging from past boycott cases, boycotting Japanese products and Korean products, no matter how intense the boycott was at the beginning, after the incident subsides, shouldn’t we Chinese people continue to buy, buy, or play? So, there is the influence of farts!

6 months ago

Nike has a market value of $200 billion and a price-to-earnings ratio of 60 times. What does this mean? If you let Nike make a dollar from you, the shareholder’s market capitalization will increase by $60. Why does Nike have such a high P/E ratio? External factors, the United States released water, leading to an increase in overall valuation. His valuation is so high, and it’s only in the past two years that he has been with more than 20 PE before. From the perspective of its own fundamentals, in 2020, Nike’s revenue in several regions will decrease to varying degrees, and the profits will not be much, but the revenue in the Greater China region has increased by several tens of percent, and the revenue share of the total revenue is not large, but the profit But it is almost catching up with the total profit. In other words, Nike didn’t make much money in other places last year. It mainly made money in China. China’s volume and price have risen, and the gross profit margin is high. Therefore, the market gives such a high price-earnings ratio because it feels that after the epidemic resumes, other regions have low growth, and the Greater China region has higher growth. Otherwise, how can such a high valuation be supported. In the current situation, CCTV has named names, and there is resistance from the people. I don’t know how long the resistance will be. Let’s discuss it separately. First, everyone feels bitterly that they don’t want it to make money in China. If it is realized, its market value is estimated to fall to tens of billions of dollars. Second, this kind of resistance is only a matter of a few months, and it will be fine afterwards. How much can it fall? Now that this situation is most likely, will the stock price return to its previous level? I think it is impossible. The boycott is all right. The stock price reflects expectations. The stock price can support such a high valuation because the expectations are good. Even if the boycott is all right, the potential increment may be gone, and the celebrity endorsements are terminated. Even after the boycott, no one dares to take it for a long time. Even if the Greater China region still maintains 2020 revenue and profits this year, this should be the weakest effect of the boycott, but the capital market does not pay the bill, because he expects the Greater China region to continue to grow by tens of percent. Digesting his 60 times valuation, without an increase, it would not be worth 60 times PE. If it does not increase but decreases, the market may not even be willing to give 20PE. Power goes one way and the other. If Nike Adi does this, part of their market or potential market will be divided up by Li Ning Anta. User stickiness is user stickiness. They are also old users. There must be old users, and there are some who choose to give up, but what about potential new users? For example, when there were 10,000 people wearing Nike in the original market, it was expected that 12,000 people would wear Nike this year. This expectation has been reflected in the previous stock price. This is the most important thing! After this incident, only 11,000 people have worn it this year. This is already the biggest failure of the boycott. If the boycott is likely to be worn by less than 10,000 people. I can’t go through this. 13,000 people will wear it this year, right? So no matter how you continue to look at it, the second quarter earnings report will be reflected, and now is just the beginning. Speaking of what Nike people do, is it the atmospheric strategic pattern we usually talk about? We really can’t understand. Why is he worth so much money in his own mind? If China’s incremental market is ruined, or potential consumers are lost, it will lose its growth potential. U.S. stocks will not have a high price-earnings ratio for stocks that have not grown. This is a tightrope with hundreds of billions of dollars.

6 months ago

I guess they will fall even if it arrives a long time ago. However, they don’t care, or they won’t take the initiative to pick things up. When they do this, it is obvious that there are politicians behind them who are doing something wrong here. They go there to cry and get the market tilt in Europe and the United States. To put it bluntly, they just saw this kind of servility. After a while, the incident subsided. Wouldn’t they still re-pull the market? After so many years of resistance, what will happen afterwards. Oh! Nothing shit.

6 months ago

When I boycotted the NBA, I called out a wave. The post is still there, and more than 5,000 likes. I was touched by what I wrote. At that time, the official media took the lead. My fans for more than 20 years were ready to fight the NBA to the end, and finally took the lead. The eldest brother is kneeling first. Let’s do it this time. There are discounts. If you don’t get off the shelves, I will buy. I will not resist. Unless they really drive Nike away from China and break with these people, I will definitely not be cannon fodder this time.

6 months ago

There are bad guys in the team! Real name is opposed to high praise answer! Oh, the number one answerer, I posted the following content in the comment area. After getting more than 100 likes, it was folded by you. Is this proactively confessing that you are a bad person? I found that when it comes to Xinjiang cotton issues, there are indispensable answers that jump out and let the government take the initiative, and there are still many praises. Chaotic rhythms and inciting emotions will of course be deceptive and misleading, but their direction is bound to be extreme and separate the focus. Don’t forget that now the Democratic Party is making money, and some forces have also become active. We don’t think that users’ comments and likes still have to be a bit level. Just put aside your emotions and think about it, and you can understand the irrationality of the government’s move. 1. Governing the country according to law and governing according to law, are there any laws or administrative regulations corresponding to this situation? 2. A major strategic principle for countering the US-imperialist trade war and technological warfare is that the more you blockade us, the more open we will be. Sanctions against companies conflict with the principle of opening up to the outside world. 3. Peer-to-peer upgrades. At present, the biggest backstage is BCI, which is still an NGO organization. It is a company and then an NGO. You must first reciprocate countermeasures and then slowly upgrade the means, do you think How did this hot news get hot? Chaotic rhythms and inciting emotions will of course be deceptive and misleading, but their direction is bound to be extreme and separate the focus. Don’t forget that now the Democratic Party is making money, and some forces have also become active. Those are all professional, but it is understandable for everyone to give a thumbs up. But think about it seriously. As long as these companies really offend me, why can’t I resist or criticize it? It is not the rational choice and ideological level of the current Chinese to criticize the government before fighting. As for those who have liked the rhythm, please cancel it when you have time.

6 months ago

There will be no impact. (The NBA thing is still hanging on that old neck tree, just watching you there.) People will still buy what they should buy. They don’t believe in riding a horse and watching the flowers-just wait and see. Zf can’t intervene. Nike Adi is not a fool. It’s such a big market in China. If you can’t resist right away, you’re talking about boycotting, what should you do if you work at a Nike counter? What about opening a store? What about those sellers? Let them stop eating? Or who can arrange new jobs and new businesses for them right away? If you really want to resist, you can only boil the frogs in warm water and take your time, but the Internet has no memory. After this period of limelight, discounts are given, and the volume of goods is sufficient. It’s not bad to go up. Just post it as proof, the magical reality, have the ability to slap me in the face!

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