NIke entry in china history

1. Case study:
NIKE IN CHINA

2. Introduction
Nike's
Journey in
China
Nike's
Expansion
and Influence
in China
Challenges
Faced After
the Olympics
Nike's Rejig
and Future
Focus

3. Nike's Journey in China
Introduction
Nike, a global sportswear giant, recognized
China's immense potential as a market early on.
In the 1970s, Nike commenced manufacturing
in China, setting the stage for its long-term
engagement with this dynamic market.
Historical Background
The roots of Nike's presence in China date back to the
1970s when it established manufacturing operations.
Founder Philip Knight's visit in 1980 coincided with
China's emergence from the Cultural Revolution. At that
time, Nike's global sales were $150 million, and China
was yet to become the manufacturing hub and fastest-
growing market it is today. Knight saw opportunities in
China's low labor costs and skilled workforce, paving the
way for Nike's enduring relationship with the country.

4. 1 9 8 0 s P r e s e n c e
In 1981, Nike made a significant
move by establishing its
marketing office in China,
marking the official beginning of
its consumer presence in the
country. This strategic decision
laid the foundation for Nike's
expansion and engagement with
Chinese consumers.
S p o n s o r s h i p a n d
C u l t u r e
Nike's influence in China
extended beyond products. The
company played a pivotal role in
sponsoring sports events and
nurturing the growth of the
'streetball' culture. This
engagement not only promoted
sports but also contributed to
shaping Chinese urban culture.
S t r a t e g i c
D e c i s i o n
As China competed to host the
2008 Olympic Games, Nike was
at the forefront of strategic
planning. The decision-making
process was critical, considering
the impact hosting the Olympics
would have on the brand's
visibility and influence in China.
Nike's Expansion and Influence in
China

5. Challenges Faced After
the Olympics
Following the spectacular 2008 Beijing
Olympics, there was an unprecedented
surge in demand for athletic gear and
footwear in China. This surge was
largely driven by the heightened
enthusiasm for sports and fitness
ignited by the Games. Nike, along with
other sports brands, experienced a
significant boost in sales during this
period. It seemed like the perfect
scenario for growth.
However, this surge in demand turned out to
be short-lived, presenting a unique set of
challenges for the industry. After the initial
excitement waned, sales began to stabilize and
even decline in some cases. Many brands that
had invested heavily in expansion during the
Olympic hype were now faced with
overcapacity and struggling to sustain their
operations. This challenging period led to the
closure of stores and a period of introspection
for the industry, as it sought to adapt to the
changing dynamics of the Chinese market.
Post-Olympic
Demand
Industry Challenges

6. Nike's Rejig and Future Focus
Reset Strategy:
In 2013, Nike embarked on a transformative journey in China through
its 'Reset' strategy. This strategic shift aimed at achieving sustainable
growth and repositioning the brand in the Chinese market. It marked a
pivotal moment in Nike's China story.
Category Offense Insights:
Central to this strategy was the application of insights gained from the
successful 'Category Offense' strategy implemented in the North
American market. Nike recognized the importance of adapting these
global strategies to the nuances of the Chinese market to drive success.
High-End Repositioning:
As part of this reset, Nike strategically repositioned itself as a high-end
brand targeting the upper-middle-class segment of the Chinese market.
This shift reflected Nike's responsiveness to changing economic
dynamics in China, where high-end products were gaining ground,
reshaping the brand's future trajectory in the country.

7. THANKS