By Barry Janoff

Come the 2008 Summer Olympics in Beijing, count the top footwear brands among those going for the gold. In this case, that would be Nike and adidas (and its Reebok unit) which not only want to build on their respective No. 1 and 2 spots in China (putting them ahead of even homegrown giant Li-Ning), but to also have the games' countless millions of worldwide viewers motivated into spending money on products in their local stores.

Nike, adidas, Reebok and Li-Ning (which has NBA star Shaquille O'Neal as company spokesman and is contemplating entering the U.S. market) are all running marketing campaigns in China. Adidas dropped $80 million to become the official sportswear partner for the Olympics—it also is the official outfitter of 16 national Olympic committees worldwide—and has been opening roughly two stores in the country each day. Nike also is covering the nation with new stores and is sponsoring 22 of China's 28 sports federations.

Adidas said the Olympics would help put it in the No. 1 position in China by 2009. That's also the year Nike said China would become its second-largest market behind the U.S. "China [is] one of the fastest-growing markets for sporting goods in the world," Herbert Hainer, adidas CEO and chairman, wrote in the company's 2008 financial report. "Further, we anticipate a positive impact on Reebok, [which] will benefit from the partnership with [NBA star and China native] Yao Ming."

Footwear Sales Get Socked
If only things looked so rosy on domestic shores. Total sales for the U.S. footwear market (combined fashion and athletic) in 2007 were $44.4 billion, just a 2% rise over 2006, per NPD Group, Port Washington, N.Y. That figure continued a downward trend that saw 10% growth in 2005 and 5% in 2006. The industry hopes to build sales on the Web, where young consumers reside and where the category saw double-digit growth last year. "Online has become an important destination for consumers to make shoe purchases," NPD chief industry analyst Marshal Cohen wrote recently. This year "will not be an easy year for growth anywhere. Footwear will have to work very hard to drive impulse, [which] most always outweighs budget constraints."

High Hopes on Hollywood Hill
Still, some footwear companies have found a way to build domestic sales. Skechers is targeting trend-driving teens with such celebs as Ashlee Simpson, JoJo and Ashley Tisdale. Reebok has Iron Man and The Incredible Hulk SKUs. And New Balance recently signed a deal with Sesame Street for kids shoes. "Our lifestyle business will play a key role in helping us to reach our goal of $3 billion in sales by 2012," said Rob DeMartini, CEO at New Balance.

Meanwhile, the category is getting more crowded. Under Armour and ESPN are launching new SKUs, and Pony, once a significant player, is trying for a comeback. Adidas has unveiled its answer to the Nike+ iPod system: miCoach, created with Samsung, which combines a mobile phone with a heartbeat monitor, stride-sensor chip and voice-simulated personal coach. Now sold in Europe, miCoach should hit U.S. stores in 2009.

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