Nike and Adidas’ Tmall sales plummeted year-on-year in April, while Li-Ning surged over 800%

Following the Xinjiang cotton incident in March, sports brands Adidas and Nike, which announced a boycott of Xinjiang cotton, have experienced real consequences, with their sales in China falling sharply. Domestic brands have gained favor from consumers, among which Li Ning’s growth rate is as high as 800%.

According to analysts from Bloomberg, the Tmall platform is currently the only online sales channel for many brands, so it is one of the indicators that more intuitively reflects brand sales. According to data from the international rating agency Morningstar, sales of sportswear and footwear on the Tmall platform fell by 11% year-on-year in April, which is opposite to the growth rate of more than 30% in the fourth quarter of 2020. However, the April sales of popular brands such as Adidas and Nike were directly cut in half, down 78% and 59% year-on-year respectively. In addition, Uniqlo, which also announced a boycott of Xinjiang cotton, also experienced a sales decline of more than 20%.

Adidas and Nike’s sales on Tmall in April dropped sharply year-on-year, while Anta and Li-Ning surged

During this period, most Chinese consumers turned to Chinese sports brands Li Ning and Anta, which have clearly stated their support for Xinjiang cotton. Data shows that Li Ning is the biggest beneficiary of the Xinjiang cotton incident. In April, the company’s sales on Tmall increased by more than 800%.

In this regard, Bloomberg said that due to China’s effective epidemic prevention measures, its economy has been able to recover rapidly after the impact of the new crown epidemic, and Chinese consumers have become the growth driver of global brand sales. However, due to changes in external factors in the international environment, Chinese consumers’ patriotic sentiment has increased, which has benefited China’s local brands even more.

As early as March 24 this year, some netizens discovered that H&M Group issued a statement claiming that “forced labor” existed in Xinjiang and decided to boycott Xinjiang cotton. This statement was immediately exposed by @ Communist Youth League Central Committee. @ Communist Youth League Central Committee said that while spreading rumors to boycott Xinjiang cotton, you also want to make money in China? Wishful thinking!

Later, H&M’s mainland spokesperson announced the termination of its contract, and searches for “H&M” on Taobao and Tmall were also blocked. As Nike, Adidas and Uniqlo were involved in the public controversy, they were all found to have declared a boycott of Xinjiang cotton. Therefore, they were terminated by their Chinese spokesmen and boycotted by netizens.

AAA

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