Nike, Adidas see golden opportunity in China

It's a sentiment shared by both companies.

The games will represent a "real, tangible sea-change in attitudes toward sport in China" Pi said, by spreading a growing trend of interest in athletics and the athletic lifestyle.

Sports were once seen as a luxury in China. But as the middle class has grown and culture has changed, interest has exploded.

Parks and other facilities are being built and opening up to the public. Basketball has become a top sport, and viewers can watch several NBA games a week in China's major cities.

Companies like Nike and Adidas, which have had a presence in the country for decades, have helped spur the growth with sponsorship of teams and tournaments. Nike has made serious community inroads in China, such as investing in Dong Dan Park in Beijing, the equivalent of draping a major city park with a swoosh.

Nike, Adidas and other shoe brands have blanketed key cities in China with stores. Unlike other markets where shoe makers often see their product sold in retail stores along with other brands, in China the brand-owned store is king.

So shoe companies are offering an inviting format and stronger brand message that is a step up from traditional Chinese retail stores. Both Nike and Adidas have about 3,000 stores each in China and have aggressive growth plans.

As payoff for the long-term work, a surprising number of Chinese consumers are buying premium brands like Nike and Adidas, despite low incomes and prices several times that of a traditional Chinese shoe. Other brands such as New Balance, Pony and Puma are making inroads as well.

"Puma, Nike, Adidas — I wear all of them," said Ms. Wang, a 24-year-old who works in advertising in Beijing and would only give her surname. "I really care about the style and design. It's very important and that's why I like foreign brands more."

International brands have tried to capture the hearts of the youth who are more consumer-driven and connected than preceding generations.

Young urban Chinese, and a growing minority in the countryside, are like their counterparts from Brooklyn to Bangkok: They wear athletic shoes, baggy T-shirts and track suits.

Nike has re-crafted its "Just Do It" campaign for China with innovative short advertisements aimed at the young Chinese consumer and longer pieces such as an innovative film of a Chinese female street basketball player struggling with her wants and the restraints of her parents.

"You can't just sell to them, you have to identify with them," Denson said.

The race for marketshare in China won't end with the Olympics; it could become even more exciting after the Games are over.

"Can the shoe wars be determined by the Olympics?" Rhoades asked. "No, but it's one more battle."

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