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

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...

Shipping News

September 2014
Tuesday, August 26, 2014
BY JENNIFER MARGULIS

In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.


Read more...

Tight and Loose

September 2014
Wednesday, August 27, 2014
BY JENNIFER MARGULIS

As schools implement more rigorous academic standards, holistic and flexible approaches to K-12 education flourish.


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...

What I'm Reading

October 2014
Thursday, September 25, 2014

Nick Herinckx, CEO of Obility, and Jake Weatherly, CEO of SheerID, share what they've been reading.


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...

Powerlist: Law Firms

October 2014
Thursday, September 25, 2014
BY KIM MOORE

A conversation with leading partners at law firms in Portland and eastern Oregon, followed by October's powerlist.


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