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Last Trade - 10/05/21

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Consumer Cyclicals
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Market Cap £155.84bn
Enterprise Value £153.61bn
Revenue £27.56bn
Position in Universe 43rd / 6854

Chinese 'limited edition' sneakers soar after Xinjiang backlash

Tue 6th April, 2021 12:36pm
BEIJING, April 6 (Reuters) - Prices of some Chinese limited
edition sneakers soared among collectors and speculators
following calls for local consumers to boycott global brands
that have said they don't source products or yarn from China's
western Xinjiang region.
    Nike  NKE.N  and Adidas  ADSGn.DE  came under attack on
Chinese social media last month over past comments.  urn:newsml:reuters.com:*:nL1N2LN0E5
    Some researchers and foreign lawmakers say Xinjiang
authorities use coercive labour programmes to meet seasonal
cotton picking needs, which China strongly denies.
    The listed price of the "All Star" version of Li-Ning Way of
Wade 4 on the Dewu App - the country's largest sneaker resale
platform also known as "Poizon" - reached 48,889 yuan ($7,463)
per pair, 31 times higher than the official price of 1,499 yuan,
the state-owned Global Times reported on Monday. 
    Anta's Doraemon-themed casual shoes on the platform were
also eight times higher than the original price of 499 yuan.
    Both offerings disappeared from Dewu, which deleted listings
for numerous local shoe models after state media criticised
speculation on sneaker prices and taking advantage of people's
patriotic feelings.
    "A large number of internet users choose to support domestic
brands, which is normal," said a Tuesday opinion piece on
People.cn, the website of the People's Daily, the official
newspaper of China's ruling Communist Party. 
    "But some scalpers thought they have caught on to a business
opportunity, as if they smelled blood."
    Dewu on Tuesday said that it deleted listings of 20 kinds of
sneakers made by Chinese sportswear brands including Li Ning
 2331.HK  and Anta Sports  2020.HK  after noticing abnormal
price fluctuation.
    Michael John, research and strategy manager at
Shanghai-based consultancy AgencyChina, said he believes the
frenzy for domestic sneaker brands will pass.
    "First, the platform Dewu continues to facilitate exchange
of limited edition Nike and Adidas sneakers," he told Reuters on
Tuesday. 
    "Second, the items that were subject to speculative activity
feature an American basketball star and a Japanese cartoon
character."
    Chinese consumers speculating on high-end sneakers typically
target foreign brands. One of the most sought-after items is the
Jordan 1 sneaker, with some editions currently selling at more
than 40,000 yuan per pair on Dewu.
    ($1 = 6.5504 Chinese yuan)

 (Reporting by Beijing newsroom; Editing by Jacqueline Wong)
 ((tony.munroe@thomsonreuters.com; +86 10 6627 1288; Reuters
Messaging: tony.munroe.thomsonreuters.com@reuters.net))
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