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There's a film by German director
Wim Wenders entitled The Goalie's Anxiety at the Penalty Kick. Doesn't
exactly sound like a breezy summer comedy, does it?
But that feeling of anxiety is probably closest to
what went through Rodney Peterson's mind during the semifinals of the
European Championships this past June. Holland versus Italy for a spot
in the Finals. Dutch players missed two penalty kicks in regulation
that would have likely sealed victory. Then they missed three more in
a shootout. For you football neophytes out there, you're supposed to
score on penalty kicks with a bit more regularity than that.
Rodney Peterson is 17 years old. He is passionate
about football in the same way that Lance Armstrong is passionate in
the saddle heading up an "out of category" climb in the French
Alps.
Trying to digest that passion as an outsider is usually
fruitless. You can't just parachute into somebody's world and hope to
understand it. C'mon, do you actually know anyone who learned a new
language by listening to those tapes? After years of continuous brand
building we've earned a unique space in the minds of European consumers.
Our success in Europe comes from the inside. We are on the pitch, in
the saddle.
In the face of a woefully weak Euro, our European
revenues grew four percent in fiscal 2000. Had the U.S. dollar remained
constant at prior year levels, sales would have increased 15 percent.
In dedicating the Bill Bowerman building at our new
European Headquarters in Holland last September, our chairman said,
"If you want to see the future of Nike, come to Hilversum."
Six years ago, a quote of that kind would have seemed unfathomable.
Yet during that period, our dedicated and locally relevant European
team has generated compounded revenue growth of over 20 percent.
The 15 percent constant dollar revenue growth this
past year was particularly challenging. Gross margins improved considerably.
Our distribution center in Laakdal, Belgium continues to provide a competitive
advantage for us in the marketplace.
But at the end of the day, it comes down to product. Much
of our apparel and a growing piece of our footwear that we sell in Europe is
designed there, so we are able to live and breathe the same air as our consumers.
Like we said, we are about consumers.
Two happenings best illustrate the accomplishments
of our European team in fiscal 2000. The first is a place: the intersection
of youth, culture and sport at the northeast corner of Regent and Oxford
Streets in London. Also known as Niketown London, the store opened in
July 1999. The success of the store can only be measured in part by
the 15 percent increase we saw in U.K. revenues for the year. More importantly,
it's a place for consumers to live the Nike brand with the same passion
as our European team.
Euro 2000 was probably the best illustration of our
success in Europe this past year. It wasn't so much that Portugal and
Holland both Nike-clad teams made the semifinals. That was
great, but the true success of our effort was captured in the 500,000
young players who went through the six Nike Parks we set up throughout
major cities in Europe, and the 2.5 million hits to the nikefootball.com
website.
We asked Rodney Peterson what it is that he admires
most about Edgar Davids, his favorite midfielder. "I should say
I like his style. You can see he wants to win the game." So do
we.
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