Nike Will Expand To China's Two Or Three Tier Cities In The Future

"We will be here in the foreseeable future."

In May 12th, Nike brand President Charlie Denson (Charlie Danson) said in an interview with "finance and economics" reporter.

Although China's manufacturing costs are rising, Charlie Danson said Nike will not shift its manufacturing base in China.

On the contrary, after big cities, Nike will continue to expand to two or three tier cities in China.

Since its entry into China in 1980, Nike has been developing in China for nearly 30 years.

At present, China is Nike's largest supplier and Nike's second largest market in the world, with annual sales revenue of US $1 billion.

In 2007, Nike made 35% of its footwear products from China, and China accounted for 180 of the 700 Nike contract factories in the world.

Since last year, the prices of raw materials, land and labor in China have increased rapidly. Some enterprises believe that China is losing its low cost advantages. Some multinational enterprises plan to pfer manufacturing bases to Vietnam and other lower cost countries.

In response, Charlie Danson said that although the rise in costs has some pressure on Nike, it is not obvious.

China's rapid economic growth not only brings consumption power, but also develops people's love for sports.

Charlie Danson said that in addition to maintaining the pace of expansion, Nike will further expand its brand influence and strengthen ties with athletes.

Brand is an important part of Nike marketing. In 2007, Nike brand accounted for 86% of total revenue.

He said Nike will further expand its brand influence with the help of the Olympic Games and strengthen ties with athletes.

"For Nike, the greater opportunity comes from the post Olympic era."

Charlie Danson said.