China Textiles &Footwear:Implications from Nike;read-across from FY17results

Nike’s latest move. Nike announced last week a series of changes to deliver greaterinnovation, speed and more direct connections to consumers. Key initiatives include:1) 25% reduction in product lines to concentrate on best-selling categories; 2) focuson growth in 12 key cities across 10 countries including Shanghai. Bloomberg on 22June reported that Nike will start selling footwear on Amazon directly and this couldbe the first of many steps for Nike to get closer to the consumer. This effort to keepcounterfeit goods off the e-commerce site could boost volume in the longer term, inour view. While it could be premature to judge the impact of the above changes, weview the streamlining in product offerings and increasing customizability as positive tospecialty suppliers