The company aims to make China its second largest market after the United States in five years, said Robert DeMartini, its chief executive officer, yesterday in Shanghai.
"China is a key market for us as it will play a significant role in lifting our global sales," said DeMartini. "We have achieved strong brand recognition in China, laying a solid foundation for our expansion."
The firm reported global sales of 1.55 billion U.S. dollars in 2006. China is now New Balance's fourth largest market in the world.
The company aims for a 10-percent market share in China by 2012 through more investment in innovation and marketing. It also plans to expand its target consumers from Chinese adults to the younger set aged between 16 and 29 years old.
Following an official brand launch in 2003 on the Chinese mainland, New Balance has opened 287 retail outlets in the country and runs seven factories with local partners.
"We are ready for expansion and will increase the number of our stores in China to 1,000 by 2012," said Darren Tucker, regional manager for New Balance Asia Pacific. "We will renovate all the outlets with a new store design concept and will spend more on advertising."
The firm is the official sponsor of the Modern Pentathlon at the 2008 Games.
Adidas, Nike and Reebok, which have more brand awareness among consumers, and domestic brands including Li-Ning and Anta compete in China's sports shoes market.
