Home Archives November 2008 Olympics give Nike’s China sales a huge boost

Olympics give Nike’s China sales a huge boost

| Print |  Email
Saturday, November 01, 2008


NikeBeijing Nike is bullish on its prospects in China well beyond the Olympics, which boosted sales there by 53%.

BEAVERTON At first glance, things did not go as planned for Nike in the Beijing Olympics. Michael Phelps and his fellow swimmers powered to new records wearing Speedos instead of Nike swim suits, Jamaican upstarts burned up the track wearing Puma, and the super-hyped Chinese hurdler Liu Xiang, the charismatic centerpiece of the Chinese version of Nike’s Just Do It campaign, collapsed in agony before the start of the biggest race of his life.

Apparently, none of that mattered — at least not to Chinese consumers. Nike’s sales in China shot up 53% amid the Olympic hoopla during the fiscal quarter that ended Sept. 30. More importantly, future orders for Nike products in China also increased by 50% as compared to 10% worldwide. Charlie Denson, Nike brand president, told investors the Beijing Olympiad was “our most successful single event ever, on multiple fronts.” CEO Mark Parker was equally bullish about Nike’s prospects in China well beyond the Olympics, as well as in similarly emerging markets in Brazil, India, Turkey and Russia.

More than half of Nike’s revenues come from sales outside of the United States, and China is the company’s fastest-growing and most important foreign market, worth more than $1 billion per year. Nike executives cite success in China as a key element to Nike’s push to grow to $23 billion in sales by 2011.

That may explain the whopping $181 million the company spent on advertising and marketing for the quarter. The spending spree cut into quarterly profits, but Nike’s approach to China always has been closer to a marathon than a sprint. Nike was one of the first multinationals to open factories in China in the early ’80s, and it has been promoting sports and sponsoring athletes in China for more than two decades, beginning with its backing of the Chinese national basketball team in 1980.

That long-term investment is looking smarter than ever these days, as consumer spending in the United States fizzles and China continues its economic ascent.                    

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


Read more...

Register for 100 Best Companies survey

News
Wednesday, August 20, 2014
OBM-100-best-logo-2015 150pxwBy Kim Moore | OB Editor

The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.


Read more...

Portland rises

News
Monday, August 18, 2014

IMG 2551Portland is in the middle of another construction boom, with residential and office projects springing up downtown, in the Pearl and Old Town. OB Web Editor Jessica Ridgway documents the new wave.


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Private liberal arts education: superior outcomes, competitive price

Contributed Blogs
Tuesday, August 26, 2014
0826 thumb collegemoneyBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS