The Nike booth at the 5th CIIE in Shanghai. [Photo provided to chinadaily.com.cn]

Nike Inc's sustained investment in local innovation and storytelling is a testament to its long-term commitment to China, its second-largest market after the United States, and the global sportswear giant has doubled down on women's sports to drive its growth in the country, its chief executive John Donahoe said in an interview with China Daily.

Donahoe, who is also president of Nike, said women consumers in China, particularly Gen Z shoppers, have inspired the company as well as the world, citing the example of how the company has listened closely to dancers while designing performance footwear.

"They (Chinese dancers) want a certain style and look, which has helped us connect more deeply with Chinese dance culture; it has not only had an impact on our performance footwear that a dancer may use during a competition or while dancing, but has also (impacted) the entire look," he said.

Break dancing will be a competitive event for the first time in the Paris 2024 Olympics.

"Chinese consumers have led a worldwide phenomenon that will be celebrated at the highest level in the Paris 2024 Olympics," Donahoe said.

The rise of women's participation in sports has grabbed the attention of leading sportswear companies, he said.

"Women want performance, comfort and style," he said. "So, we listen to women athletes."

In the last fiscal year, Nike crossed $50 billion in revenue, and women's sportswear saw double-digit growth.

"Nike's women's business is growing, and it's growing on top of some exciting innovations and storytelling," Donahoe said.

An example of the innovation is the Phantom Luna football boot — designed for women for specific fit, functionality and breathability — which is being used in the Women's World Cup. Nike has also designed the Chinese team's uniforms for the games.

To fuel the growth of Nike women's sports across divisions, Donahoe said the company has a dedicated global women's team, and has more than doubled its investments in women's sports science, design, product, creation and storytelling in recent years.

The company has not only been investing in women's sports, but has also been contextualizing its global innovations with hyper local examples and tailoring them for the Chinese market.

Donahoe, who visited Shanghai and Beijing in early June, said he was energized to see Chinese consumers coming back with vitality and vibrancy. "That just inspires and motivates us."

He said he was also impressed by the connected marketplace in the country, with online and offline channels offering a blended holistic experience.

In terms of embracing social commerce, China is ahead of the world, he said.

This is crucial for Nike China in terms of the availability of its products through mobile apps, its 6,000 retail stores, or in the context of a social experience on various social platforms, he added.

"We've significantly increased our investments in China over the last several years. We have a phrase 'China for China'," which means its Chinese mobile apps are developed locally for better speed and user experience, Donahoe said.

Cheng Xiongwei, an analyst of apparel and footwear based in Shanghai, said the increasing investments from sportswear companies have been echoing the awakening and rising consumption power of female consumers in China. "Compared to men, Chinese female consumers are found to have more consumption capacity and higher frequency in purchasing products related to health, fitness and beauty," he said.

On digitization, Cheng said international sportswear brands should enhance their inputs on online commerce to catch up with their local rivals so as to meet the diversified and changing demands from younger consumers in the market.

Source: China Daily