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

Nikes Plan for chinawareNike is already a global power house, however the potential to increase sales in chinaware was the topic of the most recent annual investor meeting. One whitethorn question Nikes preoccupation with China. After all, Nike China is dominant. They are currently the summate one brand with the number one market plowshare while competitors Reebok and Adidas are in 4th and 5th places respectively. They have tripled receipts in the last two years. With 2000 points of sale, 400 stores in the top triple cities (capital of Red China, Shanghai, Guangzhou) and 50 cities with 3 or more stores, Nike is primed to begin button into the second tier 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 churning coastal cities, this gap is as wide as ever and growing, leading to co mparisons between China today and the 1960s in Europe and the United States. Nike sees a large and growing market for its products in China. China has 20% of the worlds population. 50 million midsection class households. 430 million youth under the age of 20 (5X the number of youth in the US). 50 million middle class households - which impart grow to 150 million in next 10 years. 65% of its youth involved in sports. A consumer market that embraces brands -- particularly occidental 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 market plan to strengthen their position in the China market. The Global provide chain is in place, now they just need a strategy. But, forrader Nike can execute their well laid plans, they must first do a little damage control. In 2004, Nike advertisements featuring basketball star LeBron crowd together slaying a Chinese dragon and a kung fu master were illegalise in China and met with a flurry of criticism. The TV commercial anger government regulators because it showed an American sports icon defeating the dragon, a symbol of Chinese culture, and the hawkish arts master, a symbol of national pride. Nike clearly disrespected the Chinese culture, and was squeeze to pull the ads and apologize. Nike spokeswoman Shelley Peng said th... ...arket. However, Nikes estimates suggest it will maintain its lead in China after the merger. Nike said it has 30 percent of the Chinese acrobatic 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 extend BlogBrands in Transition Making it Work in China 2005/04/12 by Christopher Millward, Beijing This MonthNike China (NKE) growing fast (4Q05 conf call) The China Stock Blog2005 Business Report & separate 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