Nike's Plan for China

Nike's China planning Nike is already a global force, but increasing the possibility of sales in China is the theme of the latest annual investor conference. People may question Nike's concern for China. After all, Nike China is predominant. While competitors' Reebok and Adidas are ranked fourth and fifth respectively, they are now number one brands. Their income has tripled in the past two years. Nike is ready to enter second-tier cities, with 400 stores in more than 2 sales bases, the top three cities (Beijing, Shanghai, Guangzhou), 50 cities with more than 3 shops.

Today Nike has more than 7,000 retail outlets in China and plans to distribute it to the 2nd and 3rd tier cities. When Nike first entered a low cost country like China, they gained a lot of benefits. As we all know, China is Nike's largest procurement country and the most important procurement market for Nike's clothing and fixtures. However, Nike is facing China's quality control problem. For example, many low quality products were collected, and some products harmed Chinese consumers.

Since then, Nike has become a major sports brand in China. In 1981, Nike started production in China. However, for companies that provide the best products for customers like Nike, other factors such as quality must be considered. This is one of the reasons why we did not choose Africa and other countries as suppliers. In addition, one factor that China offers is the labor force to produce high quality products for Nike. In addition, China was chosen from the scale of the domestic market. Nike's president and CEO, Mark Parker, Nike is a growing company, China is becoming one of the most important procurement markets and quickly became the second largest consumer market in the world. For each of the three pairs of Nike shoes they sell in the world one is made in China. Likewise, Nike gained these benefits to enter the big market it offers.

Nike's geographic market is spreading all over the world. In March 2009 Nike announced plans to restructure worldwide operations to bring products closer to consumers and reduce duplication of management. Under the plan, Nike then decided to expand market share in North America, Western Europe, Eastern Europe / Central Europe, Greater China, Japan and emerging markets. Nike Inc. specializes in footwear, apparel, fixtures and accessories for men, women and children. The company offers football, basketball, golf, sports style casual shoes, children's shoes and other sports and entertainment footwear. The company also sells sportswear and accessories, sports style clothing and sports bags. Nike also offers performance supplies including bags, sports balls, eyeglasses, electronics, and other Nike brand sporting goods.