Nike brand will lead growth: Each affiliate brand has strong growth opportunities, but the Nike brand will continue to lead the company's performance, Parker said. The Nike brand is creating integrated, premium consumer experiences across footwear, apparel and equipment in six core categories: running, basketball, football (soccer), women's fitness, men's training and sport culture. These categories are expected to drive over 75 percent of the brand's growth.
With a consumer category focus, Nike expects to grow geographically in all regions. Nike will drive deeper growth in the United States, United Kingdom, Japan and China—four key markets that account for 61 percent of Nike brand revenues today. In addition to those markets, Nike also will invest aggressively in countries such as Russia, India and Brazil, each of which has the potential to become a new billion-dollar market.
Nike is focused on elevating the retail experience for consumers. Nike's wholesale business model will continue to be the primary driver, with retail partners expected to continue to generate more than 80 percent of sales in 2011. Nike will work closely with key retail partners to create more elevated and differentiated retail experiences.
Nike also will expand its own retail expertise and direct-to-consumer businesses. “Becoming a better retailer will help us be a better wholesale partner,” Parker said. By 2011, the company expects Nike direct-to-consumer sales, which include inline stores, factory outlets and e-commerce, to increase to 15 percent of sales, up from the current 12 percent.
“In today's world, power has shifted away from traditional brand growth models to growth driven by the power of consumers,” Parker said. “No one is better positioned than Nike to take advantage of this. We will drive growth and build shareholder value by embracing the power of the consumer and creating a new marketplace.”
marketing@alchempro.com
