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Nike plans to 'just double it' in China with focus on small cities

2011-10-14

SHANGHAI - The renowned sporting goods brand Nike aims to double its revenue in China in the next four years, an ambitious plan that it hopes will leave competitors in the dust. 

"I think China is probably more important than anywhere else in the world," said Charlie Denson, president of Nike Brand, an affiliate of Nike Inc. 

"We will be pretty aggressive as we continue to look at the expansion of our distribution." 

Nike has been active in the Chinese market for 30 years, with sales surpassing $2 billion in the 12 months to May 2011. 

Nike products are available at more than 7,000 stores in China, which is the brand's second-largest market after the United States. 

Denson is optimistic about Nike's prospects in China. He said that Nike would continue to grow by expanding to smaller cities, following the development of China's economy. 

"I think we still have a huge amount of growth opportunities as we see that economic development moves into smaller cities," said Denson. 

"We believe that it is still an infinite market. Our job is to grow the market and lead that growth." 

Last month, Nike Inc reported results for its fiscal 2012 first quarter, which ended on Aug 31. 

Revenues increased 18 percent year-on-year to $6.1 billion and net income rose 15 percent to $645 million. 

Orders for Nike brand athletic footwear and apparel, scheduled for delivery from September 2011 through January 2012, totaled $8.5 billion, 16 percent higher than orders reported for the same period last year, the US-listed company said on its website. 

"We're off to a strong start in fiscal year 2012. We have a powerful and diverse portfolio of brands and businesses, and we're focused on leveraging them to drive growth and create value for our shareholders," said Mark Parker, president and chief executive officer, on the company's website. 

Oregon-based Nike is a top global designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. 

Its subsidiaries include the Nike brand, Cole Haan, Converse Inc, Hurley International LLC and Umbro International Ltd. 

Nike has been featuring Chinese athletes, such as Liu Xiang, the Olympic gold medalist for the 110-meters hurdle, as well as Li Na, grand slam winner at the 2011 French Open, and Yi Jianlian, the NBA player. 

"Our brand is continuing to connect with athletes in China and the youth of China, to inspire, to create a brand they aspire to be a part of, to have a relationship with," said Denson.

Source:China Daily
 
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