Why Chinese Consumer Boycott Adidas and Nike Sportswear - As Sales Collapsed by 78% in April 2021

 

Adidas/Nike Vs Xinjiang cotton

Consumer backlash evident on Tmall as consumers flock to Chinese brands. China amounted to nearly one-fifth of Nike’s sales in its 2020 fiscal year and nearly a quarter of net sales for Adidas. In April, Adidas saw its Tmall sales drop 78% YoY, Nike 59% YoY

Sportswear giants Adidas and Nike saw sales plunge on China’s largest e-commerce platform, Alibaba’s Tmall, in April, according to Bloomberg.

Following calls for a boycott of international brands avoiding Xinjiang cotton and other raw materials from the region in northwest China, sales Adidas Tmall store collapsed by 78 per cent in April from the same period a year ago, while Nike’s dropped by 59 per cent over the same period.

In contrast local sportswear brands Li Ning and Anta saw a jump in revenue as China’s consumers turned to the domestic sportswear manufacturers who back the use of materials sourced from the controversial region. According to US investment research firm Morningstar, Li Ning saw its sales on Tmall surge by more than 800 per cent in April.

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The backlash against the western brands also saw a number of brand ambassadors in China cut ties with western companies including Nike and Adidas.

Revenue from Greater China amounted to nearly one-fifth of Nike’s sales in its 2020 fiscal year and nearly a quarter of net sales for Adidas, the report said.