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

How to add positivity to your team

Contributed Blogs
Friday, September 12, 2014
happy-seo-orlando-clientsBY TOM COX | OB BLOGGER

I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?


Read more...

Launch

September 2014
Tuesday, August 26, 2014
BY JESSICA RIDGWAY

September's Launch article features Orchid Health, BuddyUp and Inter-Europe Consulting.


Read more...

Podcast: Testing for Emotional Intelligence with John Hersey

Contributed Blogs
Friday, September 19, 2014
ivbU3sIXBY TOM COX | OB BLOGGER

How can you tell if you, a peer, a subordinate or a job candidate has the emotional intelligence needed to do well?


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...

The 100 Best Nonprofits to Work for in Oregon

October 2014
Thursday, September 25, 2014
BY KIM MOORE

Proud, diverse and underpaid.


Read more...

Is this employee right?

Contributed Blogs
Wednesday, August 13, 2014
081314 thumb employeefeelingsBY TOM COX | OB BLOGGER

When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”


Read more...

The Diaspora

October 2014
Thursday, September 25, 2014
BY LEE VAN DER VOO

Former newspaper journalists move into brand journalism.


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