Nike's revenue grew just 1% in the fiscal second quarter, Xiang Piao Piao gave way to professional managers, and New Balance launched a sneaker-scented fragrance Brand Daily

It's not going to be easy, Nike's revenue grew by only 1% in the second fiscal quarter

Nike is still having a hard time.

In the Q2 fiscal quarter ended November 30, Nike's revenue was $13.388 billion, an increase of only 1% year-on-year, and a year-on-year decrease of 1% if the exchange rate was constant, slightly lower than market expectations ($13.46 billion).

By region, North America, the largest market, fell about 4% year-on-year to $5.625 billion in Q2, while outside North America, Nike grew in other regions. Nike's EMEA sales rose 2% to $3,567 million, while sales in Asia and Latin America surged 13% to $1,805 million, and rose 8% to $3,377 million in the first half of the fiscal year.

In terms of categories, footwear revenue increased by 1% year-on-year to US$8.607 billion, accounting for about 67% of Nike's brand revenue, apparel revenue decreased by 1% year-on-year to US$3.774 billion, and accessories revenue increased by 17% year-on-year to US$479 million.

Nike's chief financial officer, Matt Friend, said the results illustrated "increased macroeconomic headwinds", particularly in Greater China and EMEA, with Nike adjusting its growth plans based on recent weaker numbers and higher discounts, lifecycle management of key product franchises and a stronger US dollar.

"We are looking for opportunities across the company to deliver cumulative cost savings of up to $2 billion over the next three years, up and down the P&L, and across the value chain."

There are also some optimistic signs. On the call, Nike said that Nike saw double-digit sales growth in physical stores during China's National Day. The growth of women's business is also good. Nike's women's apparel business has grown by an average of high single-digits over the past three years, and Nike's womenswear business is now worth $9 billion, and that's just the Nike brand itself, not Jordan and Converse.

Xiang Piaopiao gave way to professional managers

Xiang Piaopiao recently issued a personnel announcement saying that Jiang Jianqi, the company's chairman, general manager and founder, applied for resignation from the position of general manager of the company, and still served as the chairman of the board of directors and other positions in the company, and his position in the subsidiaries did not change;

According to the announcement, Yang Dongyun is a professional manager with rich experience in retail groups, and has worked in Guangzhou Procter & Gamble, Triumph, Yida Group, Super 8 Hotel, White Elephant Group, Jiankang Yuan Pharmaceutical Group and other companies.

In 2004, Jiang Jianqi, the founder of Xiangpiaopiao, had the idea of "making street milk tea shops convenient and branding", so he researched brewing milk tea and founded Xiangpiaopiao. Later, "more than 300 million cups are sold a year, and the cups can circle the globe when connected!" became a household name. Under the leadership of Jiang Jianqi, Xiangpiaopiao's revenue exceeded 1.9 billion yuan in 2012, was successfully listed in 2017, and its revenue peaked at 3.98 billion yuan in 2019.

Xiangpiaopiao is not only a national brand that has been successfully verified, but also created a new category, leaving Yoremi behind for a long time, occupying more than 60% of the share of ready-to-drink milk tea in cups.

Just like it has been repeatedly verified in other industries, it is often not peers who beat themselves - in an era when Mixue Bingcheng rolled up the price of freshly made milk tea to three or five yuan, Xiang Piaopiao is particularly embarrassing. Since 2020, Xiangpiaopiao's performance has begun to decline, and its revenue has declined for three consecutive years, which is reflected in market sentiment, and in 2019, Xiangpiaopiao's market value once exceeded 15 billion yuan, and now there is only 6 billion yuan left.

The performance is under pressure, the founder is retiring, and the professional manager is in the position, which may be a key step for Xiang Piaopiao to save herself. According to public information, Yang Dongyun personally led the product development and promotion of White Elephant Stewed Big Bone Noodles during his tenure as vice president and executive president of White Elephant Group, and achieved explosive growth from 100 million to 2 billion in 2011.

what's more

New Balance推出运动鞋味香水

Sneakers are also eyeing the perfume business. New Balance makes its debut in the fragrance world with the Distilled collection of limited-edition fragrances, Original and Court, which are inspired by the classic sneaker New Balance 990 and OG high-performance basketball shoes, respectively, and smell like sneakers. In the three years of the epidemic, the perfume industry has become one of the few industries that has continued to grow, and perfume has become the periphery of many brands to express their ideas because of their spiritual consumption attributes.

Yili launched the first functional adult milk powder for sleep aid

The milk powder business has to find the next reason why people pay for it. In the context of the structural slowdown in fertility, the milk powder business has also extended its hand to adults, and milk powder products that are both adult-oriented and have certain functions have become a new direction for dairy companies. Recently, Yili launched the first adult milk powder with sleep aid effect - Yili Xinhuo Youxiang Diet Bottom Formula, which is designed to meet the growing needs of consumers for sleep aids, and the relevant person in charge of Yili Xinhuo told the media that since 2019, Yili Xinhuo launched the industry's first nutritional formula with the concept of medicine and food homology, Yili Xinhuo has achieved the functional layout of blood sugar health, bone health, cardiovascular health and immune health.

Pernod Ricard will sell its liqueur brand Becherovka

Pernod Ricard, which had a weak performance, began to sell brand equity. Recently, Pernod Ricard signed an agreement to sell the Becherovka brand and associated assets, including production and logistics facilities in Karlovy Vary, to the Maspex Group. The latter is the largest private company in the food industry in Poland and one of the largest in Eastern Europe. The transaction is expected to close by the end of June 2024. In the past third quarter of 2023, Pernod Ricard's net sales were 3.042 billion euros (about 23.569 billion yuan), a year-on-year decrease of 2%, of which the Chinese and American markets both fell by 8%.

Tiffany正式入驻天猫

Tiffany wants to be closer to consumers. Following its entry into JD.com in February this year, Tiffany & Co., a jewelry giant under the LVMH Group, recently officially entered Tmall Luxury and launched the "Tiffany Official Flagship Store" to bring consumers jewelry, watches, home furnishings, accessories and other works. In addition to Tiffany, many luxury brands are optimistic about the potential of e-commerce channels and the Chinese market, and Tmall is already the only e-commerce platform in China that brings together five luxury groups: LVMH, Kering, Richemont, Chanel and Hermès.

Starbucks stores open to "China's earliest city to welcome the sun"

Starbucks continues to sink. Recently, Starbucks officially announced the official opening of its new store in Wanda Plaza in Jiamusi, Heilongjiang, "China's earliest city to welcome the sun". In September last year, Starbucks proposed to accelerate its expansion in China, opening 9,000 stores by 2025, and opening a new store in an average of 9 hours, in the first quarter of this year, Starbucks has successively entered Guang'an, Sichuan, Ankang, Shaanxi, Jishou, Hunan, Pingxiang, Jiangxi, and now Jiamusi, Heilongjiang, at the northern tip of China, also has Starbucks, and Starbucks is rapidly embracing China's fourth- and fifth-tier cities.