New CEO Nike reaffirms strategy

Bill Perez, Nike's new CEO of six months, has reaffirmed the firm's strategy regarding the development of its non-Nike brands. "While the Nike brand is the life blood of this company, we will see an increasing percentage (of revenue) coming from other brands," he told analysts and investors in New York on Tuesday. It was his first meeting with investors since replacing Nike co-founder Phil Knight in December.

Perez said he did not want to change Nike's business strategy, but pointed out opportunities in lower cost footwear and clothing through the company's Converse and Starter brands. These sell at lower cost and discount outlets. Nike started selling Starter athletic shoes for $26-38 at Wal-Mart stores in the US this year, and Perez believes there are opportunities for the concept abroad.

Scott Olivet, who overseas the non-Nike other brands division said that Nike was looking to expand its Starter label at Wal-Mart into clothing, with a marketing campaing focused on basketball. The line is expected early next year. "The value customer is evolving, they don't want to settle for last year's colours and styles," he said. Perez also underlined the importance of giving opportunities to younger managers in Nike's manager pool, and to invest more in marketing talent.