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Adidas, Reebok vie against Nike for China market
(Bloomberg)
Updated: 2005-08-09 10:31

No. 1 Growth Market

China is Nike's fastest-growing market in Asia and the second- largest in the region after Japan. Asia alone is Nike's fastest- growing region.

Asia regional sales last year rose 18 percent to $1.9 billion, Nike said. Nike's sales in China have more than tripled over the last two years. The country probably had sales of about $275 million in the year ended May 31, wrote Merrill's Genereux.

``It's the biggest growth market in the world,'' Nike's Wolfram said.

Nike's sales locations are in more than 250 cities as it opens them at a rate of 1.5 a day. Nike, which sold its first pair of sneakers in Beijing in 1982, also is applying for a retail license that would give it the option to set up the equivalent of Niketowns in China without a local partner.

Yao Ming

Adidas, which said its sales in China have doubled the past two calendar years to more than 100 million euros, or $123.7 million, said it expects sales to reach 1 billion euros by 2010. It plans to open shops at a rate of 40 a month to more than triple its sales locations to 4,000 in 400 cities by 2008.

Reebok had about $35 million in sales last year, according to Shanghai-based sports branding firm Zou Marketing, founded by former Nike executives and whose clients include Reebok.

With Reebok, Adidas adds 7-foot-5-inch Shanghai native Yao Ming to its marketing efforts. He signed with Reebok to a multiyear contract in 2003 after his agreement with Nike ended.

``I'm absolutely convinced Asia and especially China will be a growing force in the next few years,'' Hainer said. With the acquisition, ``we have a very significant symbol and asset in this country, Yao Ming. We definitely will try to exploit the strengths of both brands.''
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