Nike on green track for digitalization, more consumers

Global sportswear player Nike is bullish about the strong growth of China's sportswear market, with a focus on Generation Z and female consumers, digitalization and sports performance to engage with local sports lovers, said Angela Dong, vice-president of Nike Inc and general manager of Nike Greater China.

"We are confident in the future development of the Chinese market, with green development and digitalization as important strategic directions for Nike in China," Dong said.

Dong said in three to five years, the sportswear market in the country will see strong growth, and the rising awareness of maintaining healthy lifestyles and active participation in sports activities among younger generations is expected to fuel the surge.

She said that in the past three years, Nike China has been focusing on strengthening ties with local consumers. The company has prioritized digital transformation in its operations and in penetrating female and child consumer groups with locally appropriate sizes and designs.

In Shenzhen, Guangdong province, the Nike Digital Technology innovation center has focused on building new technological capabilities, to accelerate Nike's digital-led approach to better serve the unique and ever-evolving "digital-first "demands of Chinese consumers.

Nike's observations in emerging sports such as skateboarding and street dancing have also given the company inspiration to develop products to better engage with local consumers. The company is also increasing investment in China to build a more intelligent, flexible, efficient and sustainable supply chain system, further enhancing its logistics and operational efficiency, Dong said.

On Tuesday, Nike unveiled its Zero Carbon Smart Logistics Center — a project that is expected to have the largest single-unit storage capacity in Asia — in Taicang, Jiangsu province. The center, covering Nike's entire product distribution in the Chinese market, is supported by smart technologies, and is wholly powered by renewable energy.

With the acceleration of "zero carbon" efforts and the digital transformation, Nike will serve consumers better and faster and achieve long-term business growth in the market, Dong said.

The center, which integrates highly intelligent automation and lights-out operation, not only greatly improves the efficiency and resilience of the supply chain, but also fuels the company's service speed, such as faster order processing.

For example, with the help of the center and its systems, orders from Nike stores will be taken care of within one hour after placement. The systems can store 7 million to 12 million items and handle up to 20,000 orders per hour.

It also enhances Nike's ability to respond to unexpected situations and e-commerce peaks, maintaining a stable service level during shopping festivals, said the company.