Nike new growth strategy

Athletic concern Nike Inc has announced its plans for a new global growth strategy. This should help generate $23 billion in revenues by 2011. The Beaverton, Oregon-based company reported revenues of $15 billion in 2006. It added that it expects the Nike brand to generate 75 percent of the growth. The brand will be launching new products for six target areas: running, basketball, soccer, woman's fitness, men's training and sport culture. "As the market leader, we have the ability and the responsibility to take the industry and our partners to a new and better place," said Nike Inc President and chief executive Mark Parker.

The company's retail partners are expected to continue to generate more than 80 percent of total sales in 2011. Nike will expand its direct-to-consumer businesses, including full-price stores, factory outlets and e-commerce. By 2011, it predicts direct-to-consumer sales will account for 16 percent of sales, compared with the current 12 percent. Furthermore, the company plans to open 100 full-price Nike stores worldwide. "Becoming a better retailer will help us be a better wholesale partner," Parker said.