Thursday, September 06, 2018

Silly Kneegrows: I KNOW You Don't Believe Nike "Just Did It" For You!?!?

theconservativetreehouse |  From a pure economic/financial perspective this Nike  branding campaign doesn’t make sense…. unless, you realize a much bigger picture. A hidden bigger picture.

On its face, it just seems absurd. Why would any major corporation intentionally stake out a branding position that is adverse to their financial interests?

I’ve spoken to some very excellent business actuaries on this late today; and one specific conversation finally helped to make it all make sense.  During that conversation a good ally shared: “a multinational corporation would never make a branding decision adverse to their financial interests. Unless there is a hidden risk unrelated to what is visible on the surface.” ….

''BINGO, there it is, the lightbulb went on.

A hidden risk that likely has nothing whatsoever to do with Colin Kaepernick.

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.

The Nike political branding position is reconciled when you look at the bigger picture and see where the real financial risk aligns. The Nike economic decision is to align with China, and by extension North Korea, for a position of mutual benefit. It is all about the proverbial $$$$ and Nike’s best financial play is to mitigate risk and assist Communist China in their trade strategy.

China is willing to subsidize Nike (lower production costs), and replace any dropped revenue, in exchange for mutually beneficial political opposition against Trump and by extension his policies that are a risk to Beijing. As a result there is minimal financial risk to the Nike Corporation.

And with the current multinational Wall Street agenda now being confronted, we should not expect this approach to stop at Nike.