Nike And Adidas Are Caught Between China And The NBA
Houston Rockets general manager Daryl Morey’s tweet has sent the NBA and China’s relationship into a weeks-long tail spin, but one Chinese company may be uniquely poised for a windfall: Li Ning. In the past few years, the Chinese sports apparel company has made one of the greatest turnarounds of any company in China’s history: from indebted, over-inventoried, and barely getting by, to internet-savvy, hip, and massively profitable. This turnaround into a strong and stable brand may also allow Li Ning to capitalize on the NBA’s controversy with China. The global sports apparel giants Adidas and Nike have both long been invested in both the NBA and China, but in recent weeks the companies have been under pressure to reevaluate their business interests in China. Vice President Mike Pence even recently lambasted Nike “for checking its social conscience at the door,” due to the company’s decision to drop Houston Rockets gear from Chinese stores. Read more at Fortune.