Nike just does it in Soweto

Nike made a major brand statement in the heart of Soweto ahead of the World Cup this week as it seeks to build a Brazil-type market over the next decade

In his first visit to the country, Nike chief executive Mark Parker opened a football-training centre in Soweto. Building, begun just six months ago, was rushed to beat the opening of an event sponsored by rival adidas.

Parker said major developing markets, together with brands such as Converse, were the engine driving what he believes will be a 40% boom in revenues by 2015 to $27-billion.

While warning that high unemployment remained a big limiting factor in consumer growth, Parker said it was "quite possible" that the South African market could be grown into a Brazil-style model, and be added to the company's BRIC (Brazil, Russia, India, China) expansion strategy.

Admitting that "we were a bit nervous about whether we could be finished by this week", Parker added: "Obviously, it's not a coincidence that we're launching this facility this week - the world's focus is on the game of football, and we are energised like everyone else is.

"But we're not here just to play off the World Cup. We're also amplifying our involvement in the community. We've been here, involved with community development programmes since 1994, and leaving a legacy that goes beyond sport and (business)."

The centre combines football training with HIV/Aids awareness and testing available to 20000 young club players. Featuring slogans from global stars in its hall of fame, the centre is a new landmark on Soweto's Old Potch Road.

Introducing a number of former professionals who spoke of losing talented team-mates to Aids, Parker said the centre's role was to develop world-class players and ensure they lived to realise their potential.

Brazilian superstar Alexandre Pato was recruited to underline the connection between Nike and world-class soccer. The Milan player drew crowds as he did drills on the new pitch with teenagers.

Parker said he had no major plans for local footwear manufacture as "footwear is harder here from a manufacturing standpoint - it just hasn't really been a source of expertise and skill, in comparison to apparel".

He also warned that new potential customers were still plentiful in the West. "I think it's important for us to focus not only on the developing parts of the world; I want to stress that there are still massive opportunities in the developed markets as well. Also, in the larger portfolio of Nike, which includes Converse, Hurley and Umbro, obviously."

However, he said the rise in the middle class of the developing world, led by China, had led to healthy, double-digit growth - "15 plus percent growth - and I think South Africa can follow particularly the path we've seen in Brazil".

"In South Africa, there is tremendous growth potential. We've been consistently growing by double digits from a smaller footprint. Interest in top-level sport is not a problem - this is a sports culture, in terms of football and rugby and cricket, and also running.

"The thing is that unemployment is obviously quite high here. We're hoping that, with the excitement around the World Cup, we'll see that energy and appetite grow. We want to be part of that."