Nike, Inc. ( ) is an American multinational company involved in the design, development, manufacture and marketing and sale of shoes, clothing, equipment, accessories, and services. The company is headquartered near Beaverton, Oregon, in the metropolitan area of ​​Portland. It is the world's largest supplier of athletic footwear and apparel and major sports equipment manufacturer, with revenues in excess of US $ 24.1 billion in fiscal year 2012 (ending May 31, 2012). In 2012, he employs over 44,000 people worldwide. By 2014, the brand itself is worth $ 19 billion, making it the most valuable brand in the sports business. In 2017, the Nike brand was priced at $ 29.6 billion.
The company was founded on January 25, 1964, as Blue Ribbon Sports , by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products with its own brand, as well as Nike Golf, Nike Pro, Nike, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding and subsidiaries including Brand Jordan, Hurley International and Speaking. Nike also owns Bauer Hockey (later renamed Nike Bauer) from 1995 and 2008, and previously owns Cole Haan and Umbro. In addition to producing sportswear and equipment, the company operates a retail store under the name Niketown. Nike is sponsoring many high-profile athletes and sports teams around the world, with the trademark "Just Do It" and the highly acclaimed Swoosh logo.
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Origin and history
Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon athlete athlete Phil Knight and his coach Bill Bowerman in January 1964. The company was originally operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making the majority of sales on track meet with Knight's car.
According to Otis Davis, a Bowerman-trained student athlete at the University of Oregon, who later won two gold medals at the 1960 Summer Olympics, Bowerman made the first pair of Nike shoes for him, contrary to the claim that they were made for Phil Knight. Says Davis, "I told Tom Brokaw that I was the first I do not care what all billionaires say Bill Bowerman made the first pair of shoes for me People do not believe in me Even I'm not what they feel at There's no support and they're too tight, but I see Bowerman make it from waffle iron, and that's mine. "
In 1964, in its first year in business, the BRS sold 1,300 pairs of Japanese running shoes with a gross income of $ 8,000. In 1965, the newly acquired company acquired permanent employees, and its sales reached $ 20,000. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California next to a beauty salon, so that employees no longer needed to sell inventory from behind their cars. In 1967, due to increased sales, BRS expanded its retail and distribution operations on the East Coast, in Wellesley, Massachusetts.
In 1971, the relationship between BRS and Onitsuka Tiger was almost over. BRS prepares to launch its own shoe line, which will bear the newly designed Swoosh by Carolyn Davidson. Swoosh was first used by Nike on June 18, 1971, and registered with the US Patent and Trademark Office 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 advertisement" for Nike, called "No Finish", where no Nike product was shown. In 1980, Nike had reached 50% market share in the US athletic shoe market, and the company went public in December of that year.
Together, Nike and Wieden Kennedy have created many print and television ads, and Wieden Kennedy remains Nike's main advertising agency. It was Dan Wieden's agency co-founder who created the slogan "Just Do It" for a Nike 1988 advertising campaign chosen by Advertising Age as one of the top five slogans of advertising from the 20th Century and immortalized at the Smithsonian Institution. Walt Stack was featured in Nike's first "Do Do It" commercial, which debuted on July 1, 1988. Wieden praised the inspiration for the slogan "Let's do it", the last words spoken by Gary Gilmore before he was executed.
Throughout the 1980s, Nike expanded its product line to include many sports and territories worldwide. In 1990, Nike moved to eight World Headquarters campus buildings in Beaverton, Oregon. The first Nike retail store, nicknamed Niketown, opened in downtown Portland in November of that year.
Phil Knight announced in mid-2015 that he will resign as Nike's chairman in 2016. He formally resigned from all duties with the company on June 30, 2016.
In a public company announcement on March 15, 2018, Parker said Trevor Edwards, a top Nike executive who is seen as a successor to the chief executive, has relinquished his position as president of the Nike brand and will retire in August.
Acquisitions
Nike has acquired several clothing and footwear companies throughout its history, some of which have been sold. His first acquisition was Cole Haan's upscale shoe company in 1988, followed by the purchase of Bauer Hockey in 1994. In 2002, Nike purchased Hurley International's surfwear company from founder Bob Hurley. In 2003, Nike paid US $ 309 million to buy Converse, the maker of Chuck Taylor All-Stars sneakers. The company acquired Starter in 2004 and Umbro, known as a UK national football team kit manufacturer, in 2008.
To refocus on its core business line, Nike began divesting from several subsidiaries in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The company sells Umbro in 2012 and Cole Haan in 2013. By 2017, Nike has two major subsidiaries: Converse Inc. and Hurley International.
Financial
Nike will buy back $ 8 billion of Nike B's class shares in four years after its $ 5 billion repurchase program is now completed in the second quarter of fiscal 2013. As of September 2012, Nike Inc. has bought back $ 10 billion in shares.
Nike became a member of the Dow Jones Industrial Average in 2013, when it replaced Alcoa.
On December 19, 2013, Nike's quarterly profit rose by a 13 percent increase in global orders for merchandise since April of that year. Future shoe or clothing orders for delivery between December and April, rose to $ 10.4 billion. Nike shares (NKE) rose 0.6 percent to $ 78.75 in extended trading.
In November 2015, Nike announced it would start buying back shares worth $ 12 billion, as well as two-for-one stock split, with shares to start trading at declining prices on December 24th. This division will be the seventh in the company's history.
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Products
Sports equipment
Nike produces a wide range of sports equipment. Their first product is running running shoes. They currently also make shoes, jerseys, shorts, cleats, baselayers, etc. For various sports, including track and field, baseball, ice hockey, tennis, soccer associations (football), lacrosse, basketball, and cricket. Nike Air Max is the first line of shoes released by Nike, Inc. in 1987. Additional product lines were introduced later, such as Air Huarache, which debuted in 1992. The latest additions to their line are Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike recently introduced a cricket shoe called Air Zoom Yorker, designed to be 30% lighter than their competitors. In 2008, Nike introduced Air Jordan XX3, a high performance basketball shoe designed with environmental considerations.
Nike sells a wide range of products, including shoes and clothing for sporting activities such as soccer associations, basketball, running, sports combat, tennis, American football, athletics, golf, and cross training for men, women and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, football associations, baseball, American football, cycling, volleyball, wrestling, cheerleaders, aquatic activities, auto racing, and other athletic and recreational sports. Nike recently teamed up with Apple Inc. to produce Nike products that monitor the performance of a runner through a radio device in a shoe connected to iPod nano. While the product generates useful statistics, it has been criticized by researchers who were able to identify a user's RFID device from 60 feet (18 m) away using small, hidden intelligence in a wireless sensor network.
In 2004, Nike launched the SPARQ Training Program/Division. Some of the latest Nike shoes contain Flywire and Lunarlite Foam to reduce weight. Air Zoom Vomero running shoes, introduced in 2006 and currently in the 11th generation, showcase a combination of innovative innovations including full-length air bearing soles, external heel counters, heel collisions for shock absorption, and Fit Frame technology for stable fit.
Streets fashions
The Nike brand, with its distinct V-shaped logo, quickly became a status symbol in modern urban fashion and hip-hop mode because of its relationship to sporting success. Beginning in the 1980s, Nike clothing items became the principal clothing of American youth, especially sportswear, cotton jacket, baseball cap, Air Jordans, and Air Max running shoes with soft padded soft soles and contrasting blue, yellow, green , white, or red trim. Shoes and limited edition prototypes with early regional releases are known as Quickstrikes, and are becoming highly desirable items for teenage subculture sneakerhead members.
In the 1990s and 2000s, American and European teenagers associated with popular or popular clicks began to incorporate sneakers, leggings, sweatpants, crop tops, and tracksuits with casual casual streetwear such as jeans, skirts, foot warmers, jerseys humpback legs, and bomber jackets. The most popular are Nike Tempo unisex compression shorts used for cycling and running, which have a net layer, waterproof, and, later in the 2000s, zip bags for Walkman or MP3 players.
From the late 2000s to 2010, Nike Elite basketball socks began to be worn as everyday clothes by hip-hop fans and children. Originally plain or black white, these socks have special shock absorbers pads on the soles of the feet plus the softness that waves woven over. Later, Nike Elite socks became available in bright colors inspired by throwback basketball uniforms, often with bold abstract designs, celebrity pictures, and hands-free digital printing to take advantage of the nostalgia that emerged for the 1990s fashion.
In 2015, new self-lacing shoes are introduced. Called Nike Mag, which is a replica of the shoes featured in Back to the Future Part II, it had an initial limited release, only available through an auction with all proceeds going to the Michael J. Fox Foundation. This is done again in 2016.
Nike has introduced a premium line, focusing more on streetwear than sportswear called NikeLab.
In March 2017, Nike announced the launch of a plus-size clothing line, which will feature a new size of 1X to 3X on over 200 products. Another significant development today is the Chuck Taylor All-Star Modern, an update of the classic basketball shoes that incorporate Nike Air Jordans top and cushioned soles.
Headquarters
Nike's world headquarters are surrounded by the city of Beaverton but within Washington County. The city attempted to forcibly annex Nike's headquarters, which led to a lawsuit by Nike, and lobbied by a company that eventually ended in Oregon Senate Bill 887 in 2005. Under the terms of the law, Beaverton was specifically forbidden to annex the land that Nike and Columbia Sportswear occupied in Washington County for 35 years, while Electro Scientific Industries and Tektronix received the same protection for 30 years. Nike plans to build a 3.2 million square foot expansion into its World Headquarters in Beaverton. This design will target LEED Platinum certification and will be highlighted by natural sunlight, and a gray water treatment center.
Controversy
Nike has contracted more than 700 stores worldwide 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 hesitates to disclose information about the contracting companies that work with her. However, due to harsh criticism from some organizations such as CorpWatch, Nike has disclosed information about its contract factories in the Corporate Governance Report.
Sweatshop
Nike has been criticized for contracting the factory (known as the Nike sweatshop) in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam until the end of 1996, although Nike claims that this practice has been stopped. The company has been the target of critical coverage of the often poor working conditions and the exploitation of cheap labor abroad employed in the free trade zone where their goods are usually produced. Sources for this criticism include Naomi Klein's No Logo and Michael Moore's documentary.
The campaign has been taken by many colleges and universities, especially anti-globalization groups, as well as some anti-sweatshop groups such as United Students Against Sweatshops.
As of July 2011, Nike stated that two thirds of its factories producing Converse products still do not meet company standards for worker care. The Associated Press article July 2011 states that employees at company factories in Indonesia report constant abuse from supervisors.
Allegations of child labor
During the 1990s, Nike faced criticism over the use of child labor in Cambodia and Pakistan in its contracted factories to produce soccer balls. Although Nike takes action to limit or at least reduce the practice, they continue to contract production to companies operating in areas where inadequate regulation and monitoring make it difficult to ensure that child labor is not used.
In 2001, a BBC documentary found the incidence of child labor and poor working conditions at the Cambodian plant used by Nike. The documentary focuses on six girls, all of whom work seven days a week, often 16 hours a day.
Strike at Chinese factory
In April 2014, one of the biggest strikes in mainland China took place at Yue Yuen Industrial Holdings' Dongguan shoe factory, which produces among others for Nike. Yue Yuen does not pay an employee with 250 yuan (40.82 US Dollars) per month. The average salary in Yue Yuen is 3000 yuan per month. The factory employs 70,000 people. This practice has been around for almost 20 years.
Sponsors of Justin Gatlin
In March 2015, Nike invited criticism after announcing a new sponsorship deal with American sprinter Justin Gatlin who has undergone two bans for doping. Nike earlier dropped Gatlin after a second drug test failed and resulted in a long-term ban. Critics say that Nike sends a bad message by endorsing an athlete who has never repented for his actions and still causes widespread dissatisfaction in the sport. British sprinter Marlon Devonish described the deal as "a dental kick of up to 99% of clean people".
Paradise Papers
On November 5, 2017, Paradise Papers, a set of secret electronic documents relating to foreign investment, reveals that Nike is one of the companies that use offshore companies to avoid taxes.
The Appleby document details how Nike increased its after-tax profits by, among other maneuvers, transferring ownership of the Swoosh trademark to subsidiary Bermudan, Nike International Ltd. This transfer allows a subsidiary to charge royalties to its European headquarters in Hilversum, The Netherlands, effectively converting the profits of taxable companies into account payable in Bermuda tax-exempt. Although subsidiaries are effectively run by executives at Nike's main offices in Beaverton, Oregon - to the point where duplicate seals of Bermudan companies are required - for tax purposes a subsidiary is treated as Bermuda. The profits are not declared in Europe and are revealed only because of the largely unrelated cases in the US Tax Court, where the letters filed by Nike briefly mention royalties in 2010, 2011 and 2012 of $ 3.86 billion. Under arrangement with the Dutch authorities, the tax relief will expire in 2014, so another reorganization transfers the intellectual property of the Bermuda company to the Dutch commanditaire vennootschap or a limited partnership, Nike Innovate CV. Dutch law treats the income earned from CV as if it had been accepted by the principal, who had no tax in Holland if they did not live there.
Environmental recordings
According to the New York-based Clean Air-Cool Planet environmental organization, Nike ranks among the top three companies (out of 56) in a climate friendly enterprise survey in 2007. Nike has also been praised for its Nike Grind program (which closes the product life cycle) by groups such as Climate Counting. One of the campaigns that Nike started for Earth Day 2008 is an ad featuring Steve Nash basketball star wearing the Nike Trash Talk Shoes, which was built in February 2008 from leather and synthetic leather debris from the factory floor. The Trash Talk Shoe also features the only one that consists of soil rubber from a shoe recycling program. Nike claims this is the first performance basketball shoe made from manufacturing waste, but only produces 5,000 pairs for sale.
Another project that Nike has started is called Nike's Reuse-A-Shoe program. This program, started in 1993, is Nike's longest program that benefits both the environment and the community by collecting any old athletic shoes for processing and recycling. The resulting material is then used to help create sports surfaces such as basketball courts, running tracks, and playgrounds.
A project through the University of North Carolina at Chapel Hill found workers exposed to toxic isocyanates and other chemicals in shoe factories in Thailand. In addition to inhalation, skin exposure is the biggest problem found. This can cause allergic reactions including asthma reactions.
Marketing strategy
Nike promotes its products with sponsorship agreements with celebrity athletes, professional teams, and college athletic teams.
Ads
In 1982, Nike broadcasted its first three national television ads, created by the newly formed advertising agency Wieden Kennedy (WK), during a broadcast from New York Marathon. The Cannes Advertising Festival has named Nike as Advertiser of the Year in 1994 and 2003, making it the first company to receive the award twice.
Nike has also received an Emmy Award for the best ad twice since the award was first made in the 1990s. The first is for "The Morning After," an insinuation of what a runner might face on the morning of January 1, 2000 if any bad predictions about the Y2K problem start to work. The second is for the 2002 spot called "Move," which features a series of famous and everyday athletes in various athletic activities.
Beatles Song
Nike was criticized for using the Beatles song "Revolution" in an advertisement in 1987 against the wishes of Apple Records, the record company The Beatles. Nike paid US $ 250,000 to Capitol Records Inc., which holds North American license rights to the tape, for the right to use the Beatles portrayal for a year.
Apple Records sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden Kennedy for $ 15 million. Capitol-EMI retaliated by saying the lawsuit was "unfounded" because the Capitol has licensed the use of "Revolution" with "the active support and encouragement of Yoko Ono, shareholder and director of Apple Records."
Nike stopped showing ads featuring "Revolution" in March 1988. Yoko Ono then gave Nike permission to use John Lennon's "Instant Karma" in another ad.
New media marketing
Nike is an early adopter of Internet marketing, email management technology, and uses broadcast and narrowcast communication technologies to create multimedia marketing campaigns.
Minor Threat Ads
At the end of June 2005, Nike received criticism from Ian MacKaye, owner of Dischord Records, guitarist/vocalist for Fugazi and The Evens, and front man from dead punk band Minor Threat, to take pictures and texts from the self-titled Minor Threat album of 1981 Cover art in flyers promoting the 2005 East Coast demo Nike Skateboarding tour.
On June 27, the Nike Skateboarding website issued an apology to Dischord, Minor Threat, and their second fans and announced that they had tried to remove and remove all the flyers. They claim that the people who designed it were skateboarders and Minor Threat fans themselves who made the advertisement to honor and appreciate the band. The dispute was finally settled out of court between Nike and Minor Threat.
Nike 6.0
As part of the 6.0 campaign, Nike introduced a new line of T-shirts that included phrases like "Dope", "Get High" and "Ride Pipe" - a sporting term that is also a double meaning for drug use. Boston mayor Thomas Menino expressed his objection to the T-shirt after seeing them in a window in Niketown town and asking the store to remove the display. "What we do not need is a big company like Nike, which tries to attract the younger generation, out there confidence in the drug problem," Menino told The Boston Herald. A company official stated that the shirt was intended to pay tribute to extreme sports, and that Nike did not justify the use of illegal drugs. Nike was forced to change his shirt line.
NBA clothing and apparel uniform
In June 2015, Nike signed an 8-year contract with the NBA to become the official clothing supplier for the league, starting with the 2017-18 season. The brand took over for Adidas, which provides uniforms and clothing for the league since 2006. Unlike previous deals, the Nike logo will appear on the NBA jersey - the first for the league. The only exception is the Charlotte Hornets, owned by the old sponsor of Nike Michael Jordan, which will use the Jumpman logo associated with Jordan related merchandise.
Sponsors
Nike pays top athletes in many sports to use their products and promote and advertise their technologies and designs.
Nike's first professional athlete backer is Romanian tennis player Ilie N. stase. The first track tracker was Steve Prefontaine's long-distance runner. Prefontaine is a valuable student of the company founder, Bill Bowerman, when he trained at the University of Oregon. Today, Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.
Nike has also sponsored many other athletic athletes over the years, such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. The signing of basketball player Michael Jordan in 1984, with Nike's subsequent promotion during his career, with Spike Lee as Mars Blackmon, proved to be one of the biggest impetus for Nike's publicity and sales.
Nike has been an official sponsor for the Indian cricket team since 2005.
Nike is a major sponsor of the athletics program at Penn State University and named its first day care facility after Joe Paterno when it opened in 1990 at the company's headquarters. Nike initially announced it would not remove Paterno's name from the building behind the Penn State sex abuse scandal. After the Freeh Report was released on July 12, 2012, Nike CEO Mark Parker announced Joe Paterno's name would soon be removed from the child development center. New name not yet announced.
Nike also sponsors associate football players such as Ronaldinho, Ronaldo, Cristiano Ronaldo, Didier Drogba, Neymar, Zlatan Ibrahimovi ?, Thierry Henry, Wayne Rooney, Francesco Totti, AndrÃÆ'Ã… © s Iniesta and Landon Donovan among others.
In 2012, Nike brings a commercial partnership with the Asian Football Confederation.
In January 2013, Nike signed Rory McIlroy, the No. 1 golfer in the world for a $ 250 million 10-year sponsorship deal. The deal includes using a variety of Nike golf clubs, a move Nick Faldo previously described as "dangerous" for the McIlroy game.
On February 21, 2013, Nike announced to suspend its contract with South African athlete Oscar Pistorius, as he was accused of premeditated murder.
In August 2014, Nike announced that it would not renew their kit kit deal with Manchester United after the 2014-15 season, citing rising costs. Since the start of the 2015-16 season, Adidas has produced Manchester United equipment as part of a 10-year world record contract worth at least Ã, Â £ 750 million.
Nike currently sponsors a group of long-distance runners in an effort to run a marathon marathon for twenty full hours. The current world record is 2:02:57. Nike put together a team of "designers, scientists, trainers, and statisticians" with the goal of having one or more runners break the record by 3 percent in the spring of 2017.
In December 2017, Philippe Coutinho's picture was used in the back of the Barcelona jersey despite the fact that Coutinho was a Liverpool player at the time.
Current sponsors
Tie with the University of Oregon
The Company maintains strong ties, either directly or indirectly (through partnership with Phil Knight), with the University of Oregon. Nike designed the clothing of the University of Oregon program team. New unique combinations are issued before every game day. Tinker Hatfield, who also redesigned the university logo, led this effort.
Recently, the company donated $ 13.5 million for the renovation and expansion of Hayward Field.
Phil Knight has invested substantial personal funds to develop and maintain the university's athletic apparatus. His university project often involves input from Nike's designers and executives, such as Tinker Hatfield.
Cause
As of 2012, Nike is enrolled as a RED ( RED campaign together with other brands such as Girl, American Express, and Converse. The mission of the campaign is to prevent transmission of the mother-to-child HIV virus by 2015 (the campaign byline is "Combating AIDS-Free Generation"). The company's goal is to collect and send funds, for education and medical assistance for those living in areas heavily affected by AIDS.
Program
The Nike Community Ambassadors program enables Nike employees from all over the world to come out and give to their communities. More than 3,900 employees from various Nike stores have participated in teaching children to be active and healthy.
Products
- Nike Air Max
- Nike Air Yeezy
- Nike Pro Hijab
See also
- Nike timeline
- List of companies based in Oregon
Note
References
Further reading
- "The Swoon of the Swoosh" by Timothy Egan at The New York Times Magazine , September 13, 1998
External links
- Official website
- Company summary, from the New York Stock Exchange website
Source of the article : Wikipedia
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