Nikes Plan for China Essay - 940 Words

Nikes Plan for China Nike is already a global power house, however the potential to increase sales in China was the topic of the most recent annual investor meeting. One may question Nike’s preoccupation with China. After all, Nike China is dominant. They are currently the number one brand with the number one market share while competitors Reebok and Adidas are in 4th and 5th places respectively. They have tripled revenue in the last two years. With 2000 points of sale, 400 stores in the top three cities (Beijing, Shanghai, Guangzhou) and 50 cities with 3 or more stores, Nike is primed to begin pushing into the second tier cities. Let’s examine â€Å"why China? â€Å" Socially, China presents a portrait of change. The attitudes and preferences†¦show more content†¦Nike’s â€Å"pushing the envelope† type advertising did not translate in this case. Nike’s retail strategy includes selling through retailers and retail outlets with 10 customers generating 60% of revenues. Foreign companies can now apply for direct retail licenses –- but Nike has no plans to set-up retail shops at this time. Nikes overall China strategy †¢ Building brand awareness. †¢ Developing new and Innovative products specific to the Chinese market. †¢ Selling same products in China that sell in the West. †¢ Helping youths express themselves. †¢ Stressing core categories – basketball, soccer, women, sport culture. †¢ Marketing both local (Chinese Olympic champ) and foreign (LeBron James) athletes. †¢ Positioning for Beijing Olympics in 2008 -- sponsoring Chinese sports federations. †¢ Sponsoring sports fields. †¢ Donating products to charity. Nike will provide US$275,000 over three years to help fund a joint micro-enterprise program run by the China Foundation for Poverty Alleviation (CFPA) and Mercy Corps serving rural communities in Fujian province. †¢ Partnership with Special Olympics in China †¢ strengthen its advantage withShow MoreRelatedNike : The World s Leading Supplier Of Athletic Shoes1625 Words   |  7 PagesIn 2015 Nike announced that they plan to grow its online and e-commerce business to $7 billion by the year 2020. Mark Parker, current Nike CEO, says the potential for $7 billion in sales is there but the company needs to the target audience to adapt to the new advertising strategy that Nike has begun to implement. 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