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

Olympics give Nike’s China sales a huge boost

| Print |  Email
Archives - November 2008
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

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

Oversight? Or gaming the system?

News
Monday, July 14, 2014
AmazonBY VIVIAN MCINERNY | OB BLOGGER

Some people think Amazon’s winking eye logo is starting to look like a hoodwink.


Read more...

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


Read more...

Who said we should sell in May?

Contributed Blogs
Friday, July 18, 2014
BullMarketBY JASON NORRIS | OB GUEST CONTRIBUTOR

Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”


Read more...

Portland: Where young people go to work?

News
Friday, June 06, 2014
UntitledBY KATIE AUSBURGER | OB GUEST CONTRIBUTOR

How to build a hipster-friendly work environment.


Read more...

Understanding Oregon medical marijuana dispensary tenants

News
Friday, June 13, 2014
061314 thumb grassrentBY CLIFF HOCKLEY | OB GUEST BLOGGER

This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.


Read more...

The global challenge

News
Friday, June 27, 2014
062714 thumb globalmarketBY JASON NORRIS | OB BLOGGER

Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.


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