Written Practice Commentary N. 1
Economic Commentary Number: SL Number 1 Practice
Title of extract: Nike, Adidas see golden opportunity in China
Source of extract: Newsweek
Date of extract: 03/10/2007
Word Count: 706 words
Date the commentary was written: 11/10/2007
Section of the syllabus to which the commentary relates: Section 2.1
Commentary Number 1 Practice Extract
Nike, Adidas see golden opportunity in China
Shoemakers have long battled for market, but Olympics raise the stakes
The Beijing Olympics are less than a year away and one of the hottest races shaping up is not among the athletes, but the companies that outfit them.
China is one of the largest emerging markets and a top focus for shoemakers fighting for market share. And as the 2008 Beijing Olympics approach, the intensity is reaching a new high.
"The Beijing 2008 Games are set to be the greatest sporting event in modern Chinese history," said Paul Pi, head of marketing for Adidas in greater China.
Adidas is an official sponsor of the Olympics. In addition to paying a reported $80 million for the sponsorship position, the company has coordinated a marketing blitz that includes opening an average of two stores a day in the country.
The German company has declared the event will help put it in the No. 1 position in China by 2008, a coveted spot now held by shoe giant Nike.
Nike says China is poised to become its second-largest market in the world by 2009 after the U.S. The company has seen tremendous gains there; its first-quarter earnings reported in September show sales in China jumped 50 percent. And Nike executives say the company is widening its lead there.
"The Chinese marketplace is the most exciting marketplace in the world," said Nike Brand President Charlie Denson.
Nike declined to...