Tuesday, October 11, 2011

"Nike, top sports brand in China, plans to build new campus in Shanghai"

From OregonLive.com


Review by Michael Seibert in KIN 332 (Section 2)

Nike is arguably the most popular sports brand in the world, spanning more than 130 countries and is home to over 1 million employees. That doesn’t even count the fact that it has one of the most recognizable logos in the world. Nike reaches people from all over the globe, and is constantly looking to broaden their horizons. Starting out in Beaverton, Oregon, Nike has spread to Europe with a headquarters in Hilversum, the Netherlands, and now has its eyes set on China.

Just like any other company, Nike desires new markets to promote their products and jack up their revenue. What better place to do that than China? China is home to more than 1.3 billion people, which looks like an extremely generous market to me. Nike has already grown to more than $2 billion in sales and 7,300 stores in China, and the new Shanghai campus should just help to increase their profits.

The campus is said to be very similar in scope to its world headquarters, which is located in the U.S. Nike has visions of one day generating revenue numbers in China similar to those of the U.S., which pulled in $7.58 billion in North America last year. Plus, with China’s huge population and the popularity of sports such as basketball taking off in China, there is no reason Nike’s profits in China shouldn’t skyrocket. American athletes such as Kobe Bryant, Lebron James, and Kevin Durant are already extremely popular in China, and Nike can use them as a powerful marketing tool.

Overall, the article definitely flexed Nikes true strength within the sporting world. Nike is constantly growing, and making it harder and harder for competitors to keep up. The new campus in Shanghai should do nothing but boosts Nike’s sales even higher than they already are. To me, Nike has an awesome marketing strategy, which helps make it one of the most popular brands in the world. 

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Review by Matt Heinkel in KIN 332 (Section 2)

The Nike brand has always been one of the most innovative and forward thinking companies in the world. They are arguably the world leader when it comes to sports-wear and equipment, as they continue to push into new markets. I would argue nearly every person my age either owns or has owned some type of Nike apparel at one point or another. That may be so for the American market, but Nike has taken their brand globally. The article I found, “Nike, top sports brand in China, plans to build new campus in Shanghai” discussed Nike’s plan to expand their business even more in the Asian market. Already having major campus’s in Washington state and Europe, Nike plans to build their new campus in the populous area in the world. This is the most logical step as Nike’s revenue figures continue to grow. Sales in China have already exceeds $1 Billion dollars and Nike expects to double that figure in the next year. The popularity of Nike can be an attributed to their marketing skills that include the endorsements of some of the world’s greatest athletes. The popularity of Nike products in China was due in large part to the arrival of Yao Ming to the NBA. Now we are seeing more American stars travel across seas as they play in exhibitions and tour the Asian countries, while sporting Nike products.

The announcement of the plan for the new Nike campus comes a few months after the opening of the company’s largest product facility in Jiangsu, China back in February. Another key moment in the success of Nike in China was the 2008 Summer Olympics in Beijing. Although Nike had already been operating in China for some time, the Summer Olympics were a crucial time for the company to have their brand is a part of the largest sporting event in the world. As President of Nike Brand, Charlie Denson said, “We were going to do that with leadership from three categories. It was going to be driven by three categories, basketball, running and sportswear. Now, we've been operating in China for almost 30 years. Actually, a little over 30 years. We've been the number one brand for most of that time. But we wanted to end the debate. We wanted to make it very clear.”

No one can be sure what the future will hold for the Nike Brand as they strive to take hold of the global market for sport-wear and apparel, but if their past in any consideration, they will continue to be successful. They may face issues of cultural, economic, and social differences as they work in the varying markets. However, sports tend to have an universal appeal and as long as games are being played and fans enjoying watching their favorite athletes compete with the Nike swoosh on their jersey, they will continue to buy the products.



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