Nike seeks expansion in China's lower-tier cities

Updated: 2010-08-13 09:26
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Nike seeks expansion in China's lower-tier cities

People take photos with a painting of a Nike shoe in this file photo taken in 2005. [Asianewsphoto]

NEW YORK - After more than a decade entering China, Nike has promoted China its biggest market outside of the United States and is seeking to expand its product to lower-tier cities throughout the country, confirmed Charlie Denson, Nike brand manager, on Thursday.

Denson was presenting with the opening-up of first World Basketball Festival, sponsored by the sports manufacturer, which called up the United States, China, France, Brazil and Porto Rico to the New York city for the world basketball championship warmups.

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After witnessing fast development in China, Nike puts its expansion in the world most promising market further to second-tier, third-tier cities.

"I think China may represent seven, eight or nine percent of our overall market share today. We'll expect that to increase next several years, now China has become the number one market outside United States. We expect to continue to see that grow even more. China is our biggest market share outside the US," said Denson at the Radio City Music Hall of New York.

"Our goal is to continue to go in China, to promote the tier on cities, Shanghai, Beijing, Guangzhou, then we moved out into the second-tier cities, third-tier cities. Continuing to bring access to the Nike brand through distribution, partnerships, as well as connecting with the youth of China. I think it's a great opportunity for us to continue to build product for China, produce creativity and innovation out of China. It's a very important market place for us."

Denson is optimistic in Nike's prospect in China and China's weight in its global marketing strategy.

"We continue to be seeking to be the number one in China, it's an exciting, energetic growth market for us, and continue to grow to make a big growth story and represents more and more as a percentage total outside the united States, so we'll continue to push our brand to be the number one in China, not only basketball fanatics, just overall participating of world sports, and connecting with the Nike brand around the world," he added.

Talking about the World Basketball Festival, Denson expects to make the event a biannual activity.

"We're looking forward to bring the festival to life every two years as the world prepares for some great tournaments like world championships of basketball or the Olympics, those big two global tournaments. It's an opportunity to unite both Jordan brand, converse brand as well as Nike brand, to create something different, something special," he said.

Denson did not rule out the possibility to stage the festival outside the United States.

"I think there is the potential something we will consider to bring it (basketball festival) abroad as you think about what this represents with the five teams we brought here, China, France, Porto Rico, Brazil, USA. The idea you can take this concept abroad, it's something very exciting about to anticipate the opportunity to do it," said Denson.