The company had shifted its overseas production a way from Japan at this point, manufacturing nearly four-fifths of its shoes in South Korea and Taiwan. It established factories in mainlan d China in By the following year, when the jogging craze in the United States ha d started to wane, half of the running shoes bought in the United Sta tes bore the Nike trademark.
The company was well insulated from the effects of a stagnating demand for running shoes, however, because it gained a substantial share of its sales from other types of athletic shoes, notably basketball shoes and tennis shoes.
In addition, Nike benefited from strong sales of its other product lines, which include d apparel, work and leisure shoes, and children's shoes. Given slowing growth in the U. In Europe, Nike faced s tiff competition from adidas and Puma, which had a stronghold on the soccer market, Europe's largest athletic shoe category.
The company o pened a factory in Ireland to enable it to distribute its shoes witho ut paying high import tariffs, and in bought out its distributor s in England and Austria, to strengthen its control over marketing an d distribution of its products. In the company outfitted Aston V illa, the winning team in the English and European Cup soccer champio nships, giving a boost to promotion of its new soccer shoe.
Because Nike al ready held a part of the low-priced athletic shoe market, the company set its sights on the high-priced end of the scale in Japan. By the company's line of products included more than differe nt kinds of shoes, including the Air Force I, a basketball shoe, and its companion shoe for racquet sports, the Air Ace, the latest models in the long line of innovative shoe designs that had pushed Nike's e arnings to an average annual increase of almost percent.
In addit ion, the company marketed more than different items of clothing. By , when the company posted its first ever quarterly drop in ear nings as the running boom peaked and went into a decline, Nike's lead ers were looking to the apparel division, as well as overseas markets , for further expansion. In foreign sales, the company had mixed resu lts. Its operations in Japan were almost immediately profitable, and the company quickly jumped to second place in the Japanese market, bu t in Europe, Nike fared less well, losing money on its five European subsidiaries.
Faced with an This follow ed the "Cities Campaign," which used billboards and murals in nine Am erican cities to publicize Nike products in the period before the 4 Olympics. Despite the strong showing of athletes wearing Nike shoes in the Los Angeles Olympic games, Nike profits were down almost 30 percent for the fiscal year ending in May , although internat ional sales were robust and overall sales rose slightly.
This decline was a result of aggressive price discounting on Nike products and th e increased costs associated with the company's push into foreign mar kets and attempts to build up its sales of apparel. In resp onse, Nike adopted a series of measures to change its sliding course. The company cut back on the number of shoes it had sitting in wareho uses and also attempted to fine-tune its corporate mission by cutting back on the number of products it marketed.
It made plans to reduce the line of Nike shoes by 30 percent within a year and a half. In add ition, leadership at the top of the company was streamlined, as found er Knight resumed the post of president, which he had relinquished in , in addition to his duties as chairman and chief executive offi cer. Overall administrative costs were also reduced.
As part of this effort, Nike also consolidated its research and marketing branches, c losing its facility in Exeter, New Hampshire, and cutting 75 of the p lant's employees. Overall, the company laid off about workers during Faced with shifting consumer interests i. In addition, Nike purchased Pro-form, a sm all maker of weightlifting equipment, as part of its plan to profit f rom all aspects of the fitness movement.
The company was restructured further at the end of when its last two U. In a move that would prove to be the key to the com pany's recovery, in the company signed basketball player Michael Jordan to endorse a new version of its Air shoe, introduced four yea rs earlier. The new basketball shoes bore the name "Air Jordan. In early Nike announced expansion into a number of new lines, in cluding casual apparel for women, a less expensive line of athletic s hoes called Street Socks, golf shoes, and tennis gear marketed under the name "Wimbledon.
At that point, the company sold its 51 percent stake in Nike-Japan to its Japanese partner; six months later, Nike laid of f 10 percent of its U. Following these moves, Nike announced a drop in revenues and earnings in , and another round of restructuring and budget cuts ensued, as the company attempted to come to grips with the continuing evoluti on of the U. Only Nike's innovative Air athletic sh oes provided a bright spot in the company's otherwise erratic progres s, allowing the company to regain market share from rival Reebok Inte rnational Ltd.
A dvertising heavily, the company took a commanding lead in sales to yo ung people to claim 23 percent of the overall athletic shoe market. The company's product innovation continued, including the introductio n of a basketball shoe with an inflatable collar around the ankle, so ld under the brand name Air Pressure. In addition, Nike continued its aggressive marketing, using ads featuring Michael Jordan and actor-d irector Spike Lee, the ongoing "Just Do It" campaign, and the "Bo Kno ws" television spots featuring athlete Bo Jackson.
At the end of , the company began relocation to its newly constructed headquarters campus in Beaverton, Oregon. In the company sued two competitors for copying the patented des igns of its shoes and found itself engaged in a dispute with the U.
Customs Service over import duties on its Air Jordan basketball shoe s. The company acq uired Tetra Plastics Inc. That year, the company opened NikeTown, a prototype store selling the full range of Nike products, in Portland, Oregon.
Ni ke's U. The company began eyeing overseas markets and predicted ample roo m to grow in Europe. Nike's U. Nike also saw growth potential in its women's shoe and sports apparel division. Sales of Nike women's apparel lines Fitness Ess entials, Elite Aerobics, Physical Elements, and All Condition Gear in creased by 25 percent in both and and jumped by 68 percent in Like its predecessor in Portland, the Chicago NikeTown was designed to "combine the fun and excitement of FAO Schwartz, the Smithsonian I nstitute and Disneyland in a space that will entertain sports and fit ness fans from around the world" as well as provide a high-profile re tail outlet for Nike's rapidly expanding lines of footwear and clothi ng.
To celebrate its anniversary, Nike brought out its o ld slogan "There is no finish line. Nike continued expansion of its high-profile NikeTown chain, opening outlets in Atlanta, Georgia, in the spring of and Costa Mesa, Ca lifornia, later that year.
Also in , as part of its long-term mar keting strategy, Nike began an ambitious venture with Mike Ovitz's Cr eative Artists Agency to organize and package sports events under the Nike name, a move that potentially led the company into competition with sports management giants such as ProServ, IMG, and Advantage Int ernational. Nike also began a more controversial venture into the arena of sports agents, negotiating contracts for basketball's Scottie Pippin, Alonz o Mourning, and others in addition to retaining athletes such as Mich ael Jordan and Charles Barkley as company spokespersons.
Nike's influ ence in the world of sports grew to such a degree that in Spo rting News dubbed Knight the most powerful man in sports. Critics contended that Nike's influence ran too deep, having its hand in negotiating everything in an athlete's life from investments to t he choice of an apartment. But Nike's marketing executives saw it as part of a campaign to create an image of Nike not just as a product l ine but as a lifestyle, a "Nike attitude.
Nike lab, for more than 30 years, delivers proven scientific insight which helps drive performance innovations across the Nike brand. The lab team consists of more than 40 researchers in different scientific disciplines such as biomechanics, physiology, physics, math, kinesiology, biomedical engineering and mechanical engineering,. The mission of Nike Inc.
Countless ideas are tested in pursuit of aiding performance, injury risk reduction, enhancing perception and feel, and delivery of innovative products to athletes. You are commenting using your WordPress. You are commenting using your Google account. You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. Use precise geolocation data. Select personalised content.
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Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Nike Inc. NKE is a global company that designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services. Although primarily designed for athletic use, many of its products are worn for casual or leisure activities.
The majority of Nike's products are manufactured by independent contractors and are sold either direct-to-consumers through Nike retail outlets and digital platforms, or through independent distributors, licensees, and sales representatives.
Net income rose Revenue grew 8. Nike said that its revenue performance was impacted by strength in digital growth, which was offset by lower revenue in its wholesale business and its company-owned stores. The company also noted that it experienced temporary closures of stores in regions seeing rising COVID cases and that some regions continue to experience declines in physical retail traffic.
However, the majority of Nike's stores remain open. Nike also breaks out revenue, but not profits, for its major product lines and distribution channels. A negligible amount is attributable to Other, which includes revenue from licensing businesses of the Global Brand Divisions and Converse segments, and to foreign currency hedge gains and losses accounted for in the Corporate segment.
Nike reports both revenue and earnings before interest and taxes EBIT , its primary measure for evaluating operating performance, for its geographic business segments. The data reported in the pie charts above and in the share percentage calculations in the breakdowns below exclude segments with negative revenue or negative profits. The segment's revenue grew 0. Revenue and EBIT for the quarter rose
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