Nike Will Continue To Invest Heavily In China.

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China is the second largest market in the world.

This year coincides with Nike's entry into the Chinese market 30th anniversary. According to Nike's fiscal year 2011 results, Nike realized sales revenue of 2 billion 60 million US dollars in the Greater China market, an increase of 18% over the same period last year, excluding the exchange rate factor, an increase of 16% over the previous year, and the pre tax profit of 777 million US dollars, up 22% over the same period last year.

It is worth mentioning that Nike spent only 4 years to increase its annual sales in China from 1 billion US dollars to 2 billion US dollars. This also gives Nike great expectations for the future Chinese market. Blair, chief financial officer and vice president of Nike, said in an interview that Nike hopes to achieve 4 billion US dollars in sales in China by 2015.

According to the data released by Nike, future orders are still more optimistic. Nike's global orders for products shipped from June 2011 to November amount to US $10 billion 300 million, an increase of 15% over the same period last year.

Nike's revenue in the fourth quarter of the 2011 quarter of the Greater China market was $564 million, an increase of 21% over the same period last year.

According to the last fiscal year report, Nike's sales in the US market were US $7 billion 580 million, followed by US $2 billion 60 million in the Chinese market.

This means that China is already the second largest market of Nike group in the world.

In the Chinese market, Nike's annual sales occupy a leading position in similar products. According to the 2010 fiscal year report (from June 1, 2009 to May 31, 2010), the revenue of Nike Greater China is US $1 billion 742 million, and its competitor Adidas is earning 1 billion 330 million US dollars in 2009.

To achieve the goal of doubling sales in 2015, the sports clothing giant, based in Beaverton, Oregon, plans to increase the number of stores in the Greater China region, paying attention to leisure sports such as running and skiing, and promoting a series of local spokesmen, such as Chinese track and field star Liu Xiang and Chinese tennis player Li Na (micro-blog). "10 years ago, no one would have thought that Chinese athletes could become world stars, but now more and more Chinese people are starting to participate in world events and people are more interested in sports."

Danson, President of Nike brand, said in an interview.

Last month, Nike released a series of running products inspired by athletics star Liu Xiang, hoping that consumers could buy products such as Nike Lunar Glide Liu Xiang Storm Fly running jacket, such as Nike 899 Glide.

In addition, in view of the existing basketball fans in China, Nike intends to replicate the sports culture of individuals and groups in North America and so on, making use of China's basketball fanaticism and Nike to sponsor NBA (micro-blog) stars such as Lebron James.

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Next step into small cities in China

"Although the economic outlook for the US and Europe is not optimistic, Nike is not worried that this will affect too much business, and the emerging market provides sufficient impetus for its development.

Obviously, we will continue to invest heavily in China.

We are very excited about what we have achieved.

While expressing optimism about the Chinese market, Charlie Danson, President of Nike brand, also pointed out that Chinese sports culture may restrict Nike's development. Market watchers analyzed that outdoor sports such as football and basketball had little attraction in China's densely populated urban areas, and the fitness clubs had always been regarded as the domain of the rich.

In this way, the continued purchasing power of consumers will become a problem.

"There are many people who have a sense of movement in China, but they have not yet participated in it.

Chinese people exercise differently from most Americans.

Many people ride bicycles to work but wear everyday clothes and no one can ride in elastic fiber clothing.

The state requires compulsory primary and secondary school students to take 40 minutes of exercise every day, but this exercise is nothing more than a physical exercise rather than a sweat.

Blair is also very helpless for such a situation.

In addition, despite the increasing popularity of gyms in China in recent years and the increase in sales of sports equipment retailers, market observers also pointed out that a large proportion of the population did not have western style enthusiasm for exercise.

How to deal with possible bottlenecks? Blair said Nike intends to enter small cities in China.

At present, Nike has more than 7000 retail outlets in China.

Blair revealed that the company will open stores in more two or three tier cities in China, and "go west".

In February this year, Nike announced in Taicang, Jiangsu, that the 5 - year construction of the largest logistics center in the Asia Pacific region was formally put into use.

The logistics center, with an area of 200 thousand square meters, will be responsible for logistics operations in mainland China including clothing, footwear, sports equipment and Nike golf products. "Nike China logistics center will provide reference for the sustainable development of large-scale logistics facilities."

Market analysts pointed out that Nike,

It is reported that in the next few years, Nike also intends to enhance its partnership with the Chinese government, develop school sports programs and expand running clubs in universities.

In 2009, Nike set up several running clubs in 11 universities in six cities in China.