Nikes Plan for China Essay -- Nike Sales Retail Business Marketing Es

Nikes Plan for mainland ChinaNike is already a global spot house, however the potential to increase sales in China was the head of the most recent annual investor meeting. One may question Nikes preoccupation with China. After all, Nike China is dominant. They are currently the number unrivaled 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 stomach 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 level cities. Lets examine why China? Socially, China presents a portrait of change. The attitudes and preferences of todays generation of twenty-something consumers diverges markedly from those of their parents generation. In fact, in the economically riled coastal cities, this gap is as wide as ever and ontogenesis, star to comparisons between China today and the 1960s in Europe and the united States. Nike sees a large and increase market for its products in China. China has 20% of the worlds population. 50 one one million million million million middle class households. 430 million youth under the age of 20 (5X the number of youth in the US). 50 million middle class households - which will grow to cl million in next 10 years. 65% of its youth entangled in sports. A consumer market that embraces brands -- particularly Western brands. 300 million people expected to move from rural areas to the cities in the next 10 years. With this information in mind, Nike has created a strategic marketing plan to change their position in the China market. The Global supply chain is in place, now they just need a dodge. But, before Nike can guide their well laid plans, they must first do a pocketable damage control. In 2004, Nike advertisements featuring basketball star LeBron James slaying a Chin ese dragon and a kung fu master were banned in China and met with a flurry of criticism. The TV commercial offended government regulators because it showed an American sports icon defeating the dragon, a symbol of Chinese culture, and the martial arts master, a symbol of national pride. Nike clearly disrespected the Chinese culture, and was forced to pull the ads and apologize. Nike spokeswoman Shelley Peng verbalize th... ...arket. However, Nikes estimates suggest it will maintain its lead in China afterwards the merger. Nike said it has 30 percent of the Chinese athletic market, trailed by Adidass 19 percent. The inclusion of Reebok will catapult Adidass share to 27 percent. How is Nikes strategy working? A survey asked Chinese which brands were the coolest. The results came in Nike 52% Adidas 38% Reebok 15% Li-Ning 13% and New Balance 10%. BibliographyNike China (NKE) growing fast (4Q05 conf call) The China Stock BlogBrands in Transition make it Work in China 2005/04/12 by Ch ristopher Millward, Beijing This calendar monthNike China (NKE) growing fast (4Q05 conf call) The China Stock Blog2005 vexation Report & Independent Online, www.busrep.co.za/index.php?fArticleId=23377532005 Business Report & Independent Online, www.busrep.co.za/index.php?fArticleId=2337753Nike China (NKE) growing fast (4Q05 conf call) The China Stock BlogCSRwire, http//www.csrwire.com/article.cgi/2411.htmlBeijing This Month, featured in Business Beijing, July 2005China Daily Online. Adidas, Reebok vie against Nike for China market(Bloomberg) 2005-08-09 1031JUNE 29, 2005 -- Nike Investor Day Recap