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Financial motivations of Nike and Levis new ad campaigns
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Claw Online
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Post: #1
Financial motivations of Nike and Levis new ad campaigns
Interesting points on the impact of trade renegotiations on companies like Nike that manufacture overseas.

It's a business decision.

Quote:The bigger risk to Nike has nothing to do with Black Lives Matter, U.S. Consumers, or Antifa-like political advocacy. The bigger financial risk to the Nike Corporation has everything to do with geopolitics and a reset of international trade agreements.

Here’s the hidden aspect with research to back it up. Nike Inc. has hitched its massive corporate existence to a 10-year business plan that is dependent on the continuance of recently negotiated manufacturing contracts.
09-05-2018 03:50 PM
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JOwl Offline
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Post: #2
RE: Financial motivations of Nike and Levis new ad campaigns
This discussion utterly fails to support the key link in the chain -- that somehow the Kaep ad makes it more likely that pro-China-trade Democrats will be elected.

I have no reason to believe the ad will move the needle on the election one iota, or (more to the point) I have no reason to believe that the leaders of Nike would have any reason to believe their ad would move the needle on the election. And the article did not provide any reasoning as to why the author thinks it would.

It's much more likely that Nike simply ran the numbers and decided that while the ad would upset a lot of people, those people were marginal customers anyway. And that the pro-Kaepernick stance would resonate better with their most valuable customers (or their most-targeted potential customers in the sporting goods space). In all likelihood, it was probably a play for youth interest, at the cost of anger from the older demographics. Presumably, they've assumed any dip in the stock price would be temporary and ultimately meaningless as the higher sales kick in.

If Nike were trying to influence the election, they're much more likely to go the traditional route of buying politicians or engaging in corporate speech ($).

And please explain what the author is talking about here:
"A 20% drop in Nike value (based on current evaluations), as a result of branding themselves with controversial and political Kaepernick, is nothing compared to the staggering financial risk inherent within multi-billion manufacturing contracts that can become worthless overnight." What 20% is being referenced? The stock price is down about 2%.
09-05-2018 09:55 PM
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georgia_tech_swagger Offline
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Post: #3
RE: Financial motivations of Nike and Levis new ad campaigns
Anybody with international supply chains is in severe risk as Bretton-Woods continues to break down. Refreshing to hear geopolitics rightly enter to the discussion when talking about long term economic forecasting for multi-national corporations.
09-06-2018 10:43 AM
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