Nike is expanding its operations in Asia's economic powerhouse, unlike other American companies who are moving their operations from China to avoid tariffs.
Sean O'Hollaren, senior vice-president of government and public affairs at Nike said, "We are super excited about our prospects in greater China." He also added, "we are just grateful for an economy that is growing, and consumers that are passionate about our brand."
As a testament to the sneaker company's dedication to younger Chinese consumers, it opened a House of Innovation on Nanjing East Road in Shanghai, giving consumers personalized and digitally-integrated shopping experience.
He also believes, "a government that wants to facilitate growth is a good thing."
Sales in China last year went up 24 percent giving Nike $6.5 billion, it's highest global growth.
Though O'Hollaren expressed cautiousness on the result of the Chinese and US negotiators' meeting in Shanghai for trade talks next week, he noted that these are two of the largest economies and thus have extensive commercial and business ties. He is confident that, "we can address our issues if we not only look at what we need to do but how we do it."
Nike is one of the 172 footwear companies along with Adidas, Foot Locker, Converse, Skechers and many more who pushed back with the additional 25 percent tariff and wrote the Trump administration to reconsider the latest shoe tariffs in China so as not to burden US customers with $7 billion per year, according to Footwear Distributors & Retailers of America.
If the trade war continues for a long time, US consumers will ultimately be shouldering the bill, O'Hollaren stressed.
Nike's operations are not new in China. For 35 years, it now has more than 8,000 employees just in its Shanghai headquarters and Taicang Distribution Center. It has an additional 40,000 people in its partner stores and 145,000 in its supplier base.
Nike also drives economic growth in China by partnering with digital platforms like the flagship retail platform Tmall and the multi-purpose social-media and mobile-payment app WeChat.
The sneakers mammoth announced it will spend $100 million on its new logistics facility in Taicang, Jiangsu province come January. They are also a sponsor once more of the Shanghai International Marathon, "to fuel the passion for sports," O'Hollaren added.
O'Hollaren also states that Nike's growth in China supports job creation in the United States by allowing the company to develop new ideas and expand to new markets. Portland Business Journal reported that the company has 12,000 employees locally in 2017.
