How Should Nike Cope With These Crises?

There are indications that in the past two years, Adidas AG has been substantially lost.

Group sports giant

Inc. Nike group is sinking into the Hollywood crisis of Harvey Weinstein Harvey Weinstein scandal.

According to the world clothing and shoe net, last week, after two senior executives announced their resignation, some sources said that the Nike Inc. Nike group had a major management culture problem. The female employees of the group could not enjoy equal pay for equal work, or even suffered from improper behavior of male employees.

It is reported that last year, the group of female employees launched an informal investigation, and drafted the relevant report.

Although the Nike Inc. Nike group was silent about the reasons for the resignation of the two executives, all the public opinion and the insiders pointed to the misconduct of the male employees in the group.

In particular, the resignation of the group's next chief executive, Trevor Edwards, is even more worrying about the future of the group.

No Agency, a fashion research consultancy firm holding shares of Nike Inc. Nike group, has cleared the stock market. The agency said that although the scandal did not clearly show the impact on the stock price of the US company, all the retail stocks should be on a wait-and-see attitude towards the upcoming earnings and potential trade war uncertainties. The focus of the Nike Inc. Nike group is the same.

No Agency maintains the target price of $72 for Nike Inc. Nike group, but warns investors of short-term overlay risk.

In addition to service group's 25 year's Trevor Edwards, Nike

Jayme Martin, general manager of the world, was also resigned.

At present, Nike Inc. has 74000 employees, and its "wolf sex" competition culture has trained a large number of male executives, while women are few. According to the Wall Street journal, the highest level of women management in the group is the general counsel and human resources director of the company, and the latter only got promoted in July last year.

Paul Marciano, the co founder of American fashion brand Guess Inc., was publicly accused of sexual harassment by Paul Upton, the chairman of the outgoing group, and Laurent Potdevin, chief executive officer of the Canadian sports brand Lululemon Athletica Inc., who was suspected to be in an improper relationship with the female designer and lost the profits. After that, the world's biggest sports brand was weighed more heavily. The brand president of Nike, also called "retirement".

Nike Inc. Nike group submitted to SEC on Thursday, 15, with a brief reference to Trevor Edwards, which has decided to retire in August. Before that, his role was turned to the chairman, CEO and chief executive officer of Mark Parker to assist the group in its pition to architecture.

Mark Parker also thanked Trevor Edwards for its significant contribution to the group in the past 25 years.

However, according to the internal memorandum of Nike Inc. Nike group, as the two figure of the world's largest sports product maker, Trevor Edwards's resignation may hide a scandal.

In a memorandum, Mark Parker disclosed that it had received reports of "group core value behaviors that did not comply with inclusion, respect and empowerment" in the past few weeks, but did not specify the nature of the complaints, or whether it involved Trevor Edwards.

The group spokesman, Greg Rossiter, said there was no direct complaint about improper conduct of Trevor Edwards. He pointed out that the group was "taking appropriate action" after receiving the complaint.

Nike Inc. Nike group also announced that Mark Parker will continue to serve as chairman, President and CEO until 2020, with the disappearance of the most popular candidate at the age of 55.

After the news came out of Trevor Edwards, on Friday, the Wall Street Journal quoted sources as saying that Jayme Martin, another executive of the US giant, also left the company and was confirmed by a spokesman for the Nike Inc. Nike group, but the group declined to disclose the reason.

Jayme Martin was the general manager and vice president of Nike Nike brand before he left office. He joined the company in 1997 and is a senior member of the company.

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According to sources, the top two executives have been covering up male subordinates who insult women's subordinates.

In the past year, the Nike Inc. Nike group has been busy streamlining its business to reduce its burden to cope with the rapidly growing consumer environment and retail market in response to the weakening demand in the largest market and the competitive pursuit of competitors in the past year.

Under the leadership of Trevor Edwards, the Nike Nike brand reduced the regional sector from 6 to 4 (North America, EMEA, Greater China and the Asia Pacific region). During the year, 2% of the global business and 1/4 shoes were cut. Meanwhile, 3 improvements were made from innovation, listing speed and direct to consumer business.

Last year, the brand launched direct cooperation with Amazon.com Inc. Amazon for the first time, and decided to reduce its distribution to the "moderation" wholesalers.

However, the effectiveness of restructuring and reform is still not obvious.

In the last two quarters, although Nike Nike brand accelerated in all international markets, sales in North America recorded a 5% decline, a further deterioration than the 3% in the first quarter.

Market research firm The NPD Group data show that in 2017, the US market share of Nike Nike brand sneakers dropped from 34.5% to 32.9%, while branded brand Jordan also dropped 0.3 percentage points to 10.8%, while the largest competitor Adidas Adidas brand increased from 6.8% to 10.3%, surpassing Jordan.

In the three quarter of last year, Adidas AG Adidas group slowed down in the two fastest growing markets in North America and China, but the growth rate in the four quarter has already reached 30%, and management expects them to maintain the lead speed this year.

Mark Parker will also serve as chairman, CEO and CEO of Nike Inc. Nike group until 2020.

In addition to Trevor Edwards, Michael Spillane, chief operating officer Eric Sprunk, promoted from China CEO to group product and category in 2016, has been considered to be the successor of Mark Parker, who will be 65 years old in 2020.

Christopher Svezia, a brokerage analyst at Wedbush, points out that the news of extending the term of Mark Parker is encouraging and beneficial to the group itself, while Trevor Edwards's downfall does not mean that the business is deteriorating.

With his withdrawal, Elliott Hill, former president of Nike Geographies, will serve as the president of the consumer and sales platform, leading the marketing, geographical, direct consumer channel and global sales, while Michael Spillane will oversee the design and marketing of its original duties.

Both Elliott Hill and Michael Spillane will report directly to Mark Parker.

Investors were unmoved by the potential scandals of Nike Inc. Nike group, and Nike Inc.'s stock price fluctuated by only 0.5 percentage points in early trading on Friday, up by 0.4% to 66.63 dollars.

As of Thursday, the stock rose 6.1% in 2018.

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