Blog Post 4

Just adding to the pile

This week Nike was accused by China, once again, for false marketing. On March 15th, China Central Television (CCTV) used their annual “315” broadcast to shame Nike. This broadcast happens to coincide with World Consumer Rights Day, and their statement about Nike’s most recent mishap may result in a lot of damage for their US based company.

Nike had plans to reach $50 billion in revenue by the year 2020, but rising competitions are making that quite difficult. China is Nike’s second largest market place. However, Nike has received a very large amount of backlash from China consumers for the mis-marketing that was done within this past year.

On CCTV, Nike was accused for falsely advertising their Hyperdunk 2008 FTB shoes. It is said that 300 pairs of these basketball shoes were sold last April in China with an incorrect description saying that the shoes contained Nike’s signature “zoom air” cushion, which they did not.

Nike came out with an apology to those who were affected by the false advertisement as well as a complete refund for all those who purchased the shoes. China has a law that states consumers can apply for compensation up to three times the original price of the product, which Nike has agreed to.

After all these occurrences and where this hasn’t been the first time Nike has had dishonest dealings with China, a lot of the Chinese consumers were unsatisfied with Nike’s apology. The Chinese are unhappy and stating that Nike needs to be more sincere and serious with their Chinese consumers.

The PR used by Nike in this false marketing wasn’t accepted very well. Where Nike didn’t apologize for the incorrect descriptions of the shoes until after they were called out on it by CCTV, it looks as though Nike would have kept cheating their Chinese consumers until they were caught. This is not a good image to have, especially at a time when Nike needs China most for their increasing sales.

I think Nike apologizing for this dishonestly and them offering refunds, was simply the bare minimum that they could have done. To help their PR with their Chinese consumers they needed to do more. Something that I think they could have done, is offer China merchandise with some sort of deal to show them how much they respect and value their business. With Nike’s rising competitions making further offers to China would have been much needed.

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