This article is about the sportswear and apparel company. For other uses of the name "Nike", see.Nike Factory Store in Wisconsin
Nike, Inc. () is an American that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. The company is headquartered near,, in the. It is the world's largest supplier of and and a major manufacturer of, with revenue in excess of US.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at billion, making it the most valuable brand among sports businesses. As of 2017, the Nike brand is valued at.6 billion.
The company was founded on January 25, 1964, as Blue Ribbon Sports, by and, and officially became Nike, Inc. on May 30, 1971. The company takes its name from, the Greek goddess of victory.Nike markets its products under its own brand, as well as Nike Golf, Nike Pro,,,,, Nike Dunk,, Foamposite,, Nike CR7, and subsidiaries including Brand Jordan, and. Nike also owned Bauer Hockey (later renamed ) from 1995 to 2008, and previously owned and. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of "" and the logo.
Origins and historyOld logo of Nike, Inc., still used on some retro products with red boxes
Nike, originally known as Blue Ribbon Sports (BRS), was founded by track athlete and his coach,, on January 25, 1964. The company initially operated as a distributor for Japanese shoe maker, making most sales at track meets out of Knight's automobile.
According to, a student athlete whom Bowerman coached at the University of Oregon, who later went on to win two gold medals at the, Bowerman made the first pair of Nike shoes for him, contradicting a claim that they were made for Phil Knight. Says Davis, "I told that I was the first. I don't care what all the billionaires say. Bill Bowerman made the first pair of shoes for me. People don't believe me. In fact, I didn't like the way they felt on my feet. There was no support and they were too tight. But I saw Bowerman make them from the, and they were mine".
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing,000. By 1965 the fledgling company had acquired a full-time employee, and sales had reached,000. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard in next to a beauty salon, so its employees no longer needed to sell inventory from the back of their cars. In 1967, due to rapidly increasing sales, BRS expanded retail and distribution operations on the East Coast, in.
By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the newly designed by. The Swoosh was first used by Nike on June 18, 1971, and was registered with the on January 22, 1974.
In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first "brand ad" for Nike, called "There is no finish line", in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year.
Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder who coined the now-famous slogan "" for a 1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five ad slogans of the 20th century and enshrined in the. was featured in Nike's first "Just Do It" advertisement, which debuted on July 1, 1988. Wieden credits the inspiration for the slogan to "Let's do it", the last words spoken by before he was executed.
Throughout the 1980s, Nike expanded its product line to encompass many sports and regions throughout the world. In 1990, Nike moved into its eight-building World Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed Niketown, opened in in November of that year.
Phil Knight announced in mid-2015 that he would to step down as chairman of Nike in 2016. He officially stepped down from all duties with the company on June 30, 2016.
In a company public announcement on March 15, 2018, Parker said Trevor Edwards, a top Nike executive who was seen as a potential successor to the chief executive, was relinquishing his position as Nike’s brand president and would retire in August.
Nike has acquired several apparel and footwear companies over the course of its history, some of which have since been sold. Its first acquisition was the upscale footwear company in 1988, followed by the purchase of in 1994. In 2002, Nike bought surf apparel company from founder. In 2003, Nike paid US9 million to acquire, makers of the line of sneakers. The company acquired in 2004 and, known as the manufacturers of the 's, in 2008.
In order to refocus on its core business lines, Nike began divesting of some of its subsidiaries in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The company sold Umbro in 2012 and Cole Haan in 2013. As of 2017, Nike owns two key subsidiaries: and.
Nike will buy back billion of Nike's class B stock in four years after the current billion buyback program is completed in second quarter of fiscal 2013. Up to September 2012, Nike Inc. has bought back billion of stock.
Nike was made a member of the in 2013, when it replaced.
On December 19, 2013, Nike's quarterly profit rose due to a 13 percent increase in global orders for merchandise since April of that year. Future orders of shoes or clothes for delivery between December and April, rose to.4 billion. Nike shares (NKE) rose 0.6 percent to.75 in extended trading.
In November 2015, Nike announced it would initiate a billion share buyback, as well as a two-for-one stock split, with shares to begin trading at the decreased price on December 24. The split will be the seventh in company history.
ProductsA pair of Nike Air Jordan I basketball shoes
Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts,,, etc. for a wide range of sports, including track and field, baseball,, tennis, association football (soccer),, basketball, and. is a line of shoes first released by Nike, Inc. in 1987. Additional product lines were introduced later, such as Air Huarache, which debuted in 1992. The most recent additions to their line are the Nike 6.0, Nike NYX, and shoes, designed for. Nike has recently introduced cricket shoes called Air Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008, Nike introduced the Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind.
Nike sells an assortment of products, including shoes and apparel for sports activities like association football, basketball, running,, tennis,, athletics, golf, and for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf,, association football, baseball,, cycling, volleyball,,, aquatic activities, auto racing, and other athletic and recreational uses. Nike recently teamed up with to produce the product that monitors a runner's performance via a radio device in the shoe that links to the. While the product generates useful statistics, it has been criticized by researchers who were able to identify users' devices from 60 feet (18 m) away using small, concealable intelligence in a.
In 2004, Nike launched the /Division. Some of Nike's newest shoes contain and Lunarlite Foam to reduce weight. The Air Zoom Vomero running shoe, introduced in 2006 and currently in its 11th generation, featured a combination of groundbreaking innovations including a full-length air cushioned sole, an external heel counter, a crashpad in the heel for shock absorption, and Fit Frame technology for a stable fit.
Street fashionsNike Cortez shoe Nike Elite no-show socks with cushioned sole.
The Nike brand, with its distinct V-shaped logo, quickly became regarded as a status symbol in modern and due to its association with success in sport. Beginning in the 1980s, various items of Nike clothing became staples of mainstream American, especially tracksuits,,,, Air Force 1's, and running shoes with thick, air cushioned rubber soles and contrasting blue, yellow, green, white, or red trim. Limited edition sneakers and prototypes with a regional early release were known as, and became highly desirable items for teenage members of the.
By the 1990s and, American and European teenagers associated with the or began combining these sneakers,, sweatpants,, and tracksuits with regular street clothes such as jeans, skirts,, slouch socks, and. Particularly popular were the unisex spandex Nike Tempo worn for cycling and running, which had a mesh lining, waterproofing, and, later in the 2000s, a zip pocket for a or.
From the late 2000s into the, Nike Elite socks began to be worn as everyday clothes by hip-hop fans and young children. Originally plain white or black, these socks had special shock absorbing cushioning in the sole plus a moisture wicking upper weave. Later, Nike Elite socks became available in bright colors inspired by throwback, often with contrasting bold abstract designs, images of celebrities, and freehand digital print to capitalise upon the emerging nostalgia for.
In 2015, a new self-lacing shoe was introduced. Called the, which are replicas of the shoes featured in, it had a preliminary limited release, only available by auction with all proceeds going to the. This was done again in 2016.
Nike have introduced a premium line, focused more on streetwear than sports wear called NikeLab.
In March 2017, Nike announced its launch of a plus-size clothing line, which will feature new sizes 1X through 3X on more than 200 products. Another significant development at this time was the, an update of the classic basketball sneaker that incorporated the circular knit upper and cushioned foam sole of Nike's Air Jordans.
Nike's world headquarters are surrounded by the city of Beaverton but are within. The city attempted to forcibly annex Nike's headquarters, which led to a lawsuit by Nike, and by the company that ultimately ended in Oregon Senate Bill 887 of 2005. Under that bill's terms, Beaverton is specifically barred from forcibly annexing the land that Nike and occupy in Washington County for 35 years, while and receive the same protection for 30 years.Nike is planning to build a 3.2 million square foot expansion to its World Headquarters in Beaverton. The design will target LEED Platinum certification and will be highlighted by natural daylight, and a gray water treatment center.
ControversyNike office in North America.
Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.Nike is hesitant to disclose information about the contract companies it works with. However, due to harsh criticism from some organizations like, Nike has disclosed information about its contract factories in its Corporate Governance Report.
Nike has been criticized for contracting with factories (known as ) in countries such as,, and. Vietnam Labor Watch, an activist group, has documented that factories contracted by Nike have and overtime as late as 1996, although Nike claims that this practice has been stopped. The company has been subject to much critical coverage of the often poor working conditions and of cheap overseas labor employed in the where their goods are typically manufactured. Sources for this criticism include 's book and documentaries.
Campaigns have been taken up by many colleges and universities, especially groups, as well as several such as the United Students Against Sweatshops.
As of July 2011, Nike stated that two-thirds of its factories producing Converse products still do not meet the company's standards for worker treatment. A July 2011 article stated that employees at the company's plants in reported constant abuse from supervisors.
Child labor allegations
During the 1990s, Nike faced criticism for the use of in and in factories it contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice, they continue to contract their production to companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child labor is not being used.
In 2001, a BBC documentary uncovered occurrences of child labor and poor working conditions in a Cambodian factory used by Nike. The documentary focused on six girls, who all worked seven days a week, often 16 hours a day.
Strike in China factory
In April 2014, one of the biggest strikes in mainland China took place at the shoe factory, producing amongst others for Nike. Yue Yuen did underpay an employee by 250 yuan (40.82 US Dollars) per month. The average salary at Yue Yuen is 3000 yuan per month. The factory employs 70,000 people. This practice was in place for nearly 20 years.
On 5 November 2017, the, a set of confidential relating to, revealed that Nike is among the corporations that used to avoid taxes.
documents detail how Nike boosted its after-tax profits by, among other maneuvers, transferring ownership of its Swoosh trademark to a Bermudan subsidiary, Nike International Ltd. This transfer allowed the subsidiary to charge royalties to its European headquarters in,, effectively converting taxable company to an account payable in. Although the subsidiary was effectively run by executives at Nike's main offices in —to the point where a duplicate of the Bermudan company's seal was needed—for tax purposes the subsidiary was treated as Bermuda. Its profits were not declared in Europe and came to light only because of a mostly unrelated case in US Tax Court, where papers filed by Nike briefly mention royalties in 2010, 2011 and 2012 totaling.86 billion. Under an arrangement with Dutch authorities, the tax break was to expire in 2014, so another reorganization transferred the intellectual property from the Bermudan company to a Dutch commanditaire vennootschap or limited partnership, Nike Innovate CV. Dutch law treats income earned by a CV as if it had been earned by the principals, who owe no tax in the Netherlands if they do not reside there.
In September 2018, Nike announced it had signed American football quarterback —noted for his during the playing of the US national anthem—to a long-term advertising campaign. According to Charles Robinson of, Kaepernick and Nike agreed to a new contract despite the fact Kaepernick has been with the company since 2011 and said that "interest from other shoe companies" played a part in the new agreement. Robinson said the contract is a "wide endorsement" where Kaepernick will have his own branded line including shoes, shirts, jerseys and more. According to Robinson, Kaepernick signed a "star" contract that puts him level with a "top-end NFL player" worth millions per year plus royalties.
According to the New England-based environmental organization Clean Air-Cool Planet, Nike ranked among the top three companies (out of 56) in a survey of climate-friendly companies in 2007.Nike has also been praised for its program (which closes the ) by groups like. One campaign that Nike began for Earth Day 2008 was a commercial that featured basketball star wearing Nike's Trash Talk Shoe, which had been constructed in February 2008 from pieces of leather and synthetic leather waste from factory floors. The Trash Talk Shoe also featured a sole composed of ground-up rubber from a shoe recycling program. Nike claims this is the first performance basketball shoe that has been created from manufacturing waste, but it only produced 5,000 pairs for sale.
Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program, started in 1993, is Nike's longest-running program that benefits both the environment and the community by collecting old athletic shoes of any type in order to process and recycle them. The material that is produced is then used to help create sports surfaces such as basketball courts, running tracks, and playgrounds.
A project through the found workers were exposed to toxic and other chemicals in footwear factories in. In addition to inhalation, dermal exposure was the biggest problem found. This could result in allergic reactions including asthmatic reactions.
Nike promotes its products by with celebrity athletes, professional teams and college athletic teams.
In 1982, Nike aired its first three national television ads, created by newly formed ad agency (W+K), during the broadcast of the. The Cannes Advertising Festival has named Nike its Advertiser of the Year in 1994 and 2003, making it the first company to receive that honor twice.
Nike also has earned the for best commercial twice since the award was first created in the 1990s. The first was for "The Morning After," a satirical look at what a runner might face on the morning of January 1, 2000 if every dire prediction about the came to fruition. The second was for a 2002 spot called "Move," which featured a series of famous and everyday athletes in a variety of athletic pursuits.
Nike was criticized for its use of the song "" in a 1987 commercial against the wishes of, the Beatles' recording company. Nike paid US0,000 to Inc., which held the North American licensing rights to the recordings, for the right to use the Beatles' rendition for a year.
Apple Records sued Nike Inc., Capitol Records Inc., Inc. and Wieden+Kennedy for million. Capitol-EMI countered by saying the lawsuit was "groundless" because Capitol had licensed the use of "Revolution" with the "active support and encouragement of, a shareholder and director of Apple Records."
Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave permission to Nike to use 's "Instant Karma" in another advertisement.
New media marketing
Nike was an early adopter of, technologies, and using and communication technologies to create multimedia marketing campaigns.
Minor Threat advertisement
In late June 2005, Nike received criticism from, owner of, guitarist/vocalist for and, and front man of the defunct punk band, for appropriating imagery and text from Minor Threat's 's cover art in a flyer promoting 's 2005 East Coast demo tour.
On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor Threat, and fans of both and announced that they have tried to remove and dispose of all flyers. They stated that the people who designed it were skateboarders and Minor Threat fans themselves who created the advertisement out of respect and appreciation for the band. The dispute was eventually settled out of court between Nike and Minor Threat.
As part of the 6.0 campaign, Nike introduced a new line of T-shirts that include phrases such as "Dope", "Get High" and "Ride Pipe" – sports lingo that is also a for. Boston Mayor expressed his objection to the shirts after seeing them in a window display at the city's Niketown and asked the store to remove the display. "What we don't need is a major corporation like Nike, which tries to appeal to the younger generation, out there giving credence to the drug issue," Menino told. A company official stated the shirts were meant to pay homage to extreme sports, and that Nike does not condone the illegal use of drugs.Nike was forced to replace the shirt line.
NBA uniform and apparel deal
In June 2015, Nike signed an 8-year deal with the to become the official apparel supplier for the league, beginning with the 2017–18 season. The brand took over for, who provided the uniforms and apparel for the league since 2006. Unlike previous deals, Nike's logo appeared on NBA game jerseys – a first for the league. The only exception is the, owned by longtime Nike endorser, which instead uses the logo associated with Jordan-related merchandise.
Sponsorship(pictured in 1987) helped drive Nike sales.
Nike pays top athletes in many sports to use their products and and advertise their technology and design. Nike's first professional athlete endorser was Romanian tennis player. The first track endorser was distance runner. Prefontaine was the prized pupil of the company's co-founder,, while he coached at the University of Oregon. Today, the Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.
Nike has also sponsored many other successful athletes over the years, such as, and. The signing of basketball player in 1984, with his subsequent promotion of Nike over the course of his career, with as, proved to be one of the biggest boosts to Nike's publicity and sales.(pictured with Barcelona in 2007) appeared in a 2005 Nike advertisement that went on, becoming the site's first video to reach one million views.
Nike is a major sponsor of the athletic programs at and named its first child care facility after when it opened in 1990 at the company's headquarters. Nike originally announced it would not remove Paterno's name from the building in the wake of the Penn State sex abuse scandal. After the Freeh Report was released on July 12, 2012, Nike CEO Mark Parker announced the name Joe Paterno would be removed immediately from the child development center. A new name has yet to be announced.
Nike also sponsored association football players such as,,,,,,,,,,, and among others.
In 2012, Nike carried a commercial partnership with the. In December 2017, Nike advertised 's image on the back of a jersey despite still being a player. In 2017, had his own boots commissioned at age 18, the Kylian Mbappé 3.
Nike has sponsored for much of his career. In January 2013, Nike signed, the then No 1 golfer in the world to a 10-year sponsorship deal worth 0 million. The deal includes using Nike's range of, a move previously described as "dangerous" for McIlroy's game.
Nike has been the official kit sponsor for the since 2005. On February 21, 2013, Nike announced it suspended its contract with South African athlete, due to his being charged with.
In August 2014, Nike announced that they will not renew their kit supply deal with Manchester United after the 2014–15 season, citing rising costs. Since the start of the 2015–16 season, Adidas has manufactured Manchester United's kit as part of a world-record 10-year deal worth a minimum of £750 million.
Ties with the University of Oregon
The company maintains strong ties, both directly and indirectly (through partnership with ), with the. Nike designs the University of Oregon football program's team attire. New unique combinations are issued before every game day., who also redesigned the university's logo, leads this effort.
More recently, the corporation donated.5 million towards the renovation and expansion of.
Phil Knight has invested substantial personal funds towards developing and maintaining the university's athletic apparatus. His university projects often involve input from Nike designers and executives, such as.
In 2012, Nike is listed as a partner of the campaign together with other brands such as Girl, and. The campaign's mission is to prevent the transmission of the HIV virus from mother to child by 2015 (the campaign's byline is "Fighting For An AIDS Free Generation"). The company's goal is to raise and send funds, for education and medical assistance to those who live in areas heavily effected by AIDS.
The Nike Community Ambassador Program, allows Nike employees from around the world to go out and give to their community. Over 3,900 employees from various Nike stores have participated in teaching children to be active and healthy.
- ^ The pronunciations of "Nike" include officially and in the US, as well as outside of the US.
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