Sportswear goes local

From today's WSJ:

In efforts to woo China's consumers, Nike Inc., the country's market leader in sportswear, and Adidas AG are both aggressively promoting apparel and shoes with designs incorporating Chinese elements -- a departure from the mostly Western-influenced styles they have marketed in the past.



The companies "will do whatever they can to tell the story, 'we were the partner in China's greatest sporting moment,'" says Terry Rhoads, managing director of Zou Marketing, a Shanghai-based sports-marketing firm. "It's a huge battle."



Already this year, Nike and Adidas will each surpass sales of $1 billion in China, their biggest market after the U.S. From 2002 to 2006, sales of athletic shoes and clothing in China by volume doubled, according to market-research firm Euromonitor International. Overall, sportswear sales are expected to grow at an annual rate of 20% for the next five years, and premium brands such as Nike and Adidas can expect increases of 35% to 40%, Mr. Rhoads says.