Nike Outlines Global Growth Strategies

To drive global growth and market leadership of the Nike and affiliate brands, Nike Inc. announces plans to focus on creating premium consumer experiences built on product innovation, brand leadership and an elevated retail presence. The company targets top-line revenue growth to $23 billion by fiscal 2011 based on growth across its brand portfolio, up from $15 billion in fiscal 2006. Over the next five years, the company anticipates that 75 percent of this growth will be generated by the Nike brand and will be driven by a consumer-defined category strategy. Strategy plans include:

• Driving 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.
• Elevating the retail experience for consumers through Nike's wholesale business model. Retail partners expected to continue to generate more than 80 percent of sales in 2011.
• Expanding its own retail expertise and direct-to-consumer businesses. 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. Growth will come from all three Nike direct-to-consumer categories.