NKE is still good to buy, but face challenge
Yesterday's non-farm rate has a little worry about exception of the future consumption. Feb trade balance is not turning better but much worse even under the weaker USD. Trade war isn't effect the company like nike and apple which has a big market in China. As an investor, we should keep claim and find opportunity during this huge move in the market.
NKE has a lot room to go up, but need to careful to protect our assets as first goal now. I guess the market like nike's perform in oversea market. the price should be touch 70.
Additional information i would like to present here is the price of nike's products is much higher then 7 years ago, however, the power of teenage consumption is stronger then 7 years ago. However i guess it probably reach the top which means it probably turns to recession soon. An example is 80's 90's generation face higher life cost comparing with North america, but some or lower salary which is 2000 USD pre month. So those people usually don't have saving on bank account need to be supported by parents or credit card or other loan from financial institution. it is a big problem.
Nike has an advantage here is NIKE is going to escape business of running direct retail store which like NIKE town in USA, they gave is risk to their local retail partners and online shop partners. This is very smart decision. retail partners has problems include higher rent fees which is higher operational cost, so they could not give more discount like online partners which has lower operation cost and lower cashflows requirement. Based on this, NIKE keeps to explore their demand with low risk in present economic environment. Additionally nike also do not run a direct outlet store in China, i guess the reason is higher and higher labour cost and very strong competition from online retail for example, war of low price.
Nike's products is more competitive in China comparing the local brand, Adidas and Lining are the major competitors in Chinese market. more and more chinese people choose do exercise to relief their pressure. Nike's products are their first choice. Remember, NIKE'S PRCE IS HIGHER comparing in North America even they are in promotion.
Conclusion: Nike is much easier to explore market share in China, but the big challenge is staring to appear in Chinese market.
I hope this information can help you
NKE has a lot room to go up, but need to careful to protect our assets as first goal now. I guess the market like nike's perform in oversea market. the price should be touch 70.
Additional information i would like to present here is the price of nike's products is much higher then 7 years ago, however, the power of teenage consumption is stronger then 7 years ago. However i guess it probably reach the top which means it probably turns to recession soon. An example is 80's 90's generation face higher life cost comparing with North america, but some or lower salary which is 2000 USD pre month. So those people usually don't have saving on bank account need to be supported by parents or credit card or other loan from financial institution. it is a big problem.
Nike has an advantage here is NIKE is going to escape business of running direct retail store which like NIKE town in USA, they gave is risk to their local retail partners and online shop partners. This is very smart decision. retail partners has problems include higher rent fees which is higher operational cost, so they could not give more discount like online partners which has lower operation cost and lower cashflows requirement. Based on this, NIKE keeps to explore their demand with low risk in present economic environment. Additionally nike also do not run a direct outlet store in China, i guess the reason is higher and higher labour cost and very strong competition from online retail for example, war of low price.
Nike's products is more competitive in China comparing the local brand, Adidas and Lining are the major competitors in Chinese market. more and more chinese people choose do exercise to relief their pressure. Nike's products are their first choice. Remember, NIKE'S PRCE IS HIGHER comparing in North America even they are in promotion.
Conclusion: Nike is much easier to explore market share in China, but the big challenge is staring to appear in Chinese market.
I hope this information can help you
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