The history of Nike began back in 1964, when University of Oregon student and part-time sprinter Phil Knight, together with his coach Bill Bowerman, came up with an ingenious scheme to sell high-quality and inexpensive shoes. That same year, Phil went to Japan, where he signed a contract with Onitsuka to supply sneakers to the United States. The first sales were carried out right on the street from Knight's micro-van, and the office served as a garage. At that time the company existed under the name Blue Ribbon Sports.
Phil and Bill were soon joined by a third person, athlete and talented sales manager, Jeff Johnson. Thanks to his special approach, he increased sales and also changed the company's name to Nike, naming the company after the winged goddess of victory.
In 1971, a significant event occurred in the history of Nike - the development of a logo that is still used today. The “flourish” or wing of the goddess Nike was invented by Portland University student Caroline Davidson, who received a fairly modest fee for her creation, only $30.
Legendary InnovationIn the history of the Nike brand, there are two ingenious inventions that brought particular success and popularity to the brand. The company's first meteoric rise began in 1975, when Bill Bowerman invented the famous ridged sole while watching his wife's waffle iron. It was this innovation that allowed the company to become a leader and make it the best-selling shoe in America.
In 1979, Nike had another revolutionary development - an air cushion built into the sole, which extended the life of the shoe. This innovation, invented by aircraft engineer Frank Rudy, led to the creation of the world famous, legendary Nike Air series of sneakers.
Our daysToday, the Nike brand is a symbol of sports, and its history to this day is rich in interesting facts. For example, in the near future the company is planning a joint project with by Apple. They will jointly release hi-tech technology - these are sneakers and an audio player connected to each other.
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The site's observer studied the history of the company, which built a legendary sports brand over 50 years.
The sports industry, like any other, has many peculiarities, and usually the outside observer only sees the tip of the iceberg, while the key differences go much deeper. For many, sport is, first of all, interesting matches, competitions with an unexpected outcome, support for favorites and hatred of opponents. But this is only the external part of the industry. The success of athletes depends not only on their efforts, but also on the equipment that allows them to gain an advantage over those who do not have it.
It is quite possible that Nike founders Phil Knight and Bill Bourman were guided by this idea when they began creating the famous brand in the mid-1960s. Phil was a varsity runner, and Bill coached the local team for many years. Both of them felt the lack of good equipment for competitions affordable price. In fact, the only serious brand in this area at that time was Adidas, but, unfortunately, their sports shoes were too expensive. The products of local companies were not suitable for professional sports.
One day, Knight again wondered where to get high-quality sneakers, and realized that this was a free niche. Some sources say that the idea came to him during a seminar at Stanford Business School. As a result, Knight came up with his own model - purchasing suitable shoes in Asia and reselling them in the USA. To start a business, money was needed, and Knight turned to a man who also knew firsthand about the problems with sports shoes - Bill Bourman. Together they came up with a name for the company - Blue Ribbon Sports.
In 1974, a new important stage in the company's development began. Nike opens production in the USA and employs up to 250 people. In the same year, the promotion of the brand to the markets of other countries began, the first being nearby Canada. Nike is starting to get a lot of press, primarily because of its aggressive campaign to capture the market. At the end of the year, sales reached $5 million, but what was much more important was that the brand became truly recognizable.
When the company first launched itself in earnest, its leaders recognized several key features of the market in which they were about to operate. First, new models should be produced in advance of important sporting events. Secondly, everyone loves athletes - if one of the stars puts on Nike sneakers, then they will become a dream for many fans who want to be like their idol. Third: sport can be fashionable, this will allow you to achieve high level sales
The company demonstrated the first two principles before the 1976 Olympics: during track and field competitions, most athletes wore Nike ridged shoes. Soon after the Olympics, the third rule also worked: running became a popular way to keep fit, which brought the company great amount new clients. They all looked up to their idols, who wore Nike. This was reflected in the company's revenue, which reached $25 million in 1977.
Great demand for the brand's sports shoes leads to expansion of production. Nike is opening several new factories in the United States and is also expanding production lines in Asia.
In 1978, integration into other countries of the world was achieved, and it was achieved quite easily: the brand’s shoes sold well in Europe. The start of sales in the Asian market, which had not previously caused any positive reactions among experts, brings the company great profits.
At this time, an important event for the history of sports brands happened: Nike entered into an advertising contract with one of the best tennis players of that time, John McEnroe. Since then, such contracts have become a common practice for promoting the company's products. In the same year, a line of children's shoes went on sale. In addition, Nike managed to take advantage of the problems of its main competitor Adidas and capture about 50% of the US market.
In the late 1970s, another important event occurred - former NASA employee Frank Rudy developed the Nike Air shock-absorbing cushion. The idea did not immediately appeal to sports brands, and many, including Nike, abandoned this idea. As a result, Frank still managed to convince the company's management, although he had previously gone through almost all the major competitors and did not receive consent from them.
This was one of Nike's first product improvements. The next few changes affected the appearance of the models, and the later famous designer Tinker Hatfield was especially successful in this.
In the early 1980s, the company went public and used the money it made from the stock to increase sales of the brand. The main destination was Europe and one of the most popular sports - football. The reason for the reorientation to the European market was the decline in the popularity of running in the United States. It should be noted that the company was still late in changing the line, which ultimately led to a decrease in profits.
It was difficult for the brand to achieve success in this direction: Adidas and Puma had strong positions in Europe. Nike used a proven strategy to promote itself through prominent athletes. In 1982, a contract was signed with the then champion of England, the Aston Villa club.
In the US, the brand has also begun to focus on other sports. Nike was primarily interested in basketball. In the early 1980s, the company's product range began to increase significantly. Previously, Nike created mainly running shoes, but now it has begun to create sports uniforms, tennis rackets, boots and much more. In addition, the company moved away from the concept of creating equipment mainly for men and introduced several women's lines.
The change in course still did not save the company from the decline in sales, which began in 1983 and affected not only the US market, but also Europe, where the brand’s position was also vulnerable. Many cite the reason that Knight handed over control of the company to the vice president of marketing, who had no experience leading such giants. As a result, Knight had to become CEO again in 1985.
In 1984, the company, already established in basketball, signed a contract with one of the most famous players - Michael Jordan. A model of Air Jordan shoes was developed especially for the athlete, which he had to wear during all matches. The league considered the sneakers too bright and banned Jordan from wearing them on the court, but the athlete continued to play in Air Jordan every game, paying fines of $1,000 per game and drawing attention to the brand.
The company continued to make losses in 1985. It became clear that the time had come for drastic changes - a reduction in output and staff layoffs began. The company, on the one hand, reduced its product lines, and on the other, increased marketing costs in order to establish the usual level of sales.
In 1986, sales finally began to grow and reached $1 billion. This was largely possible thanks to changes in the line of women's products, which included casual wear, and the introduction of a series of budget sports shoes called Street Socks. Despite the successes, layoffs did not stop, and over six months, about 10% of the staff was cut.
In 1987, the company was still trying to catch up with competitors who had managed to get ahead during the crisis. The brand's main opponent in the United States was Reebok, which managed to snatch a percentage of the basketball direction from its competitor. During this period, a new model of AirMax sneakers with Visible Air technology was released, in which the air chamber was specially made visible.
In 1988, to make up for lost time, the company released the previously announced new version of the Air Jordan III, which was highlighted by its distinct look from sports design guru Tanker Hatfield. In the same year, the brand’s famous advertising campaign with the slogan “Just Do It” begins. By the way, there is a legend on this score that the slogan was taken from Gary Gilmore, a murderer sentenced to death in 1977, who shouted “Let's do it” a few minutes before execution." Dan Weiden, representative of the advertising agency Weiden & Kennedy , suggested an option with the word “Just”, and the brand’s leaders liked this idea so much that they agreed without further hesitation.
Another version says that famous phrase was borrowed from the American humanist Jerry Rubin. If you wish, you can find several more options, but all sources agree on one thing: the slogan was created by the advertising agency Weiden & Kennedy. In the future, “Just Do It” will actually become the second name of the brand and will be recognized as one of the best slogans in history. Phil Knight would later emphasize that he always lived by the motto “Just Do It”: it was with this approach that he founded Nike.
In 1988, the brand's profits increased by $100 million. Nike began an active campaign aimed at promoting its own slogan. By 1989, costs would reach $45 million. This campaign is still cited as an example of aggressive brand promotion. Nike did not skimp on the costs of its organization, collaborating with stars such as Michael Jordan, Andre Agassi and Bo Jackson.
In 1990, an accident occurred that caused a serious public outcry: teenagers killed their peer in order to take Nike shoes from him. Many began to criticize the company for being too aggressive in promoting the brand, which led to the tragedy. But this situation attracted even more attention to the company's products, and sales continued to grow. In the same year, materials began to appear in the press that child labor was used in Nike's Asian factories, and the company had to refute these accusations.
At the same time, Nike acquired Tetra Plastics, a company that produced plastic sole strips. Thanks to excellent sales of shoes with Nike Air technology, the brand has become a leader in the field of sports and fitness. Many analysts agree that the company will soon achieve total dominance in its field. The same year, the Niketown brand store opened. Revenue is also growing, reaching $2 billion.
In 1991, Nike finally managed to catch up with its main competitor in the US market, Reebok. The brand’s position in the European market also became much more stable, where sales reached $1 billion. At the same time, the company still could not achieve leadership, but only kept pace with its competitors. The desire of sports brands to gain control of the European market is perfectly demonstrated by the commercials on MTV Europe, which run almost non-stop.
In the American market, the company's position is strengthened thanks to a lucrative agreement with the Chicago Bulls basketball team, which became champions three times from 1991 to 1993. This record increased the popularity of the brand. In 1991, a new shoe model of the Nike Air Max 180 brand went on sale. The advertising campaign for these sneakers was headed by another star basketball player, Charles Barkley. Despite this approach to promotion, Air Max 180 did not immediately become popular due to limited quantity model colors.
In 1992, Nike celebrates its anniversary. The company's revenues hit $3.4 billion. Phil Knight, at an official event in honor of the holiday, announced a plan to turn the company into the world's largest brand, using the old slogan: this is not the end. Nike announces the opening of new brand stores around the world and the release of revolutionary products and, of course, invests in advertising.
In the same year, a new Niketown appears. At the pretentious opening, the company's management announced that it would become a kind of Disneyland for all lovers of a sports lifestyle. The brand continues to promote the idea that sports and Nike are one and the same. Anyone who loves sports should come to Niketown sooner or later.
At the same time, one of the most important events in the history of sports business takes place. The US basketball team, led by Jordan, won the Olympics, but refused to wear a special winner's uniform for the awards, because most of the team members signed a contract with Nike and could not wear competitors' products. This came as a shock to the sports world: no one expected that equipment manufacturers now control everything in sports.
In 1993, three more Niketowns opened in the United States. The company continued its work in basketball, extending contracts with Jordan and Barkley, as well as reaching agreements with several new stars. The new agreements had a real impact on the life of the athlete, in particular, they determined which events he should appear at. Increasingly, publications began to appear in the media that sport has become a business.
In addition, the brand is launching a series of sporting events - Nike Step. At the end of the year, Phil Knight was unexpectedly declared the most influential person In sports. For the first time in history, this title was given to a sports equipment manufacturer rather than a player or club president.
Until the mid-1990s, the company's position became increasingly stronger. In 1995, Nike achieved dominance in the American market, finally defeating Reebok. In Europe, sales reached $3 billion. The company does not stop there and continues to expand its product line. In 1994, Nike acquired one of the leading developers of hockey equipment, Canstar, which was eventually renamed Bauer Hockey. In 1995, the brand invested in the future by signing a contract with a young golfer who would later contribute much to the history of this sport - Tiger Woods.
The trend of revenue growth continued, and in 1997 the company set a revenue record of $9.19 billion. However, most of it was provided by the American market, and the company received a total of about $2 billion from Asia and Europe. The company became too dependent on the US market: any changes the tastes of the brand's dominant audience - teenagers - led to a decrease in sales. The first bell sounded in 1998, when third-quarter profits fell to a record low over the past decade and a half. One of the main reasons was the crisis in Asia, where sales also decreased. The company carried out a partial restructuring and began, as in the mid-1980s, to reduce product lines and the number of employees. Before 1999, about 5% of the staff was fired.
The situation was aggravated by public protests against Nike's approach to organizing labor in Asia: it came to open actions and boycotts of goods. In an attempt to rectify the situation, Nike decided to amend contracts with employees of the company's factories, made information about working conditions in production facilities publicly available, and agreed to conduct an inspection with independent experts. However, this problem has not yet been completely resolved, and from time to time Nike is again drawn into scandals related to poor working conditions.
An attempt was also made to return the brand to public popularity: the campaign to create playgrounds and distribute equipment in poor neighborhoods and third world countries became widespread.
Nike management concluded the reason for the decline in sales: the brand did not pay attention in time to the growing popularity of extreme sports. The company began producing a corresponding line of products, which, as usual, featured an original design.
In 1999, Nike began to work on the Internet - primarily through great videos. In the future, viral videos will become one of the business cards brand. At the same time, online sales also started. This year, Nike's action in Yugoslavia during the famous conflict was loud: the company placed peacekeeping messages on billboards in Belgrade.
In 2000, Nike introduced new Shox technology - it was the world's first mechanical shock absorption system in shoes. The company had the technology back in the late 1980s, but it was only used for the first time now.
Gradually, all these innovations allowed the company to restore its revenue level, and in 2001 a new revenue record was set, amounting to $10 billion. In the early 2000s, the company introduced several high-profile advertising videos. Just look at the video with Marion Jones, who won three gold medals at the Olympics in 2000 - in the video she was running away from a maniac. The video ended at the most interesting point, and each viewer could propose his own ending on the Nike website, and the best ideas were published. In the same year, the face of the brand changed: the place of Jordan, who retired from the sport, was taken by Tiger Woods, who received a contract worth $100 million.
The audience was delighted by the “Cage” commercial, in which twenty of the world’s most famous football players competed in a mysterious football tournament. The video is still considered one of the best in history. Integration into the football industry did not end there: in 2002, Nike completed a deal with Manchester United worth $486 million, which strengthened the Red Devils' position as the richest club in the world at that time.
At this time, the company moved to actively increase production capacity by absorbing competitors. In 2003, Converse, the manufacturer, was acquired famous model sneakers The deal cost Nike $305 million.
The same year, the company signs a contract with LeBron James, presenting him as the new Michael Jordan. A new model of the company's Air Max 3 sneakers appears, which were positioned as the first running model. AM3 has become quite popular - largely due to its sophisticated minimalist design.
In 2004, the world was shocked by the news that the company's permanent president, Phil Knight, was resigning from his post. His son Matthew was supposed to take the place of head of Nike, but he died in an accident, and William Perez became the new head of the company.
In the same year, a new stage of the campaign against bad conditions labor at Nike factories in Indonesia and Vietnam. Information has surfaced that 50 thousand workers in Indonesia earn as much in a year as brand officials earn in a month. The company had to work hard to reassure the public. Still, quarterly revenue rose 25% this year, Nike's best ever.
In 2005, the company introduced a new model of Nike Free 5.0 sneakers, which caused criticism due to the fact that they quickly wore out during active training. In the future, shoes in this series will be significantly improved.
In the same year, another important event took place - Reebok, broken during a long struggle with Nike, became part of Adidas, and now both of the company's main competitors began to oppose it together. However, Nike's position looked unshakable: the company controlled 32% of the global sportswear market, which was almost twice as much as its competitors.
The same year, “Ronaldinho: A Touch of Gold” appeared, in which the famous football player hits the crossbar four times without allowing the ball to touch the ground. This video received the Silver Lion at the Cannes Advertising Festival.
In 2006, William Perez was removed from his post as head of the company by Mark Parker. The main reason was that Perez did not fully understand the brand. Parker, unlike his predecessor, had worked at the company since the early 1980s, and Nike's history was made before his eyes. The reshuffle played a fateful role in the further development of the brand. Parker proved to be a talented CEO: he made the changes that were needed to strengthen Nike's dominant position in the market. One of them was an almost complete transition to our own points of sale instead of the widespread use of official distributors.
At the same time, a new model of Air Max 360 sneakers was released, the main feature of which was the elimination of foam in the sole. This time the design was entrusted to the young designer Martin Lotti.
Another important event took place this year - Nike+iPod, developed jointly with Apple, was presented to the public. The device was positioned as a way to listen to music and play sports without unnecessary worries. Thanks to an accelerometer built into Nike shoes and a special receiver connected to an iPod, it recorded all the necessary information: pace, distance, lost calories. It could be used while jogging and even during aerobics.
Many argue that the friendship of the brands was not limited to the joint release of goods and Mark Parker, in the early stages of his presidency, often consulted with Steve Jobs. In the future, the giants will reach a new level of cooperation and Tim Cook will even join the board of directors of Nike.
In 2007, tensions between Adidas and Nike rise again. The German concern rebranded Reebok and prepared to attack its competitor. However, this was not so easy to do: Nike had almost complete control over basketball (95% of the direction), in addition, thanks to an effective approach to design and innovation, the company had a strong position in the production of sports shoes. To build even more capacity, Nike acquired British sports equipment manufacturer Umbro in 2007. So the company was going to advance Adidas in football, where the German giant still had leadership.
The deal was officially completed in 2008, as a result of which Nike's revenue exceeded $18 billion. Thus, the American brand increased its lead over Adidas. Nike+iPod Gym was introduced in September of this year. At the same time, the company noted an increase in sales in China, which led brand executives to believe that it could easily achieve dominance in this market. In the end, it turns out that they were hasty in their conclusions, and Nike will have to significantly change their operating model in order to conquer the Chinese market.
In 2010, the company’s “Write the Future” campaign starts on social networks. The video made for her becomes one of the most popular on the Internet, and some media outlets will later call it cursed, because most of its participants failed the tournament. During the campaign, fans were asked to vote for the player who would change the world and send a message. The campaign is considered one of the best examples of using social media for viral marketing.
In 2010, the FIFA World Cup was held in South Africa, for which Nike developed a series of boots. At the company's initiative, some football players' uniforms were made from recycled materials. plastic bottles, collected in Asian countries - this is how Nike tried to demonstrate its respect for nature. In the same year the brand signs new contract with the Portuguese football player Cristiano Ronaldo, the deal amount is $8.5 million per year.
In 2011, another advertising campaign for The Chosen brand was launched, the purpose of which was to promote extreme sports among young people. Social networks have again become the main platform. The campaign began with a countdown indicator until the video was released online. Two weeks before it, a 33-second teaser appeared online. The video itself was filmed in Bali, Indonesia and New York. Simultaneously with the promotional video, a film appeared on the Internet with a story about how its filming took place. In addition, a competition was held in which participants were invited to make their own video about extreme sports.
In the same year, a campaign was held in Germany, Austria and Switzerland to present the new Vapor Flash running jacket - light reflection technology allowed it to literally glow in the dark. 50 athletes wearing these jackets moved around Vienna at night and constantly transmitted their location to the website. Everyone was invited to take a photo of one of them along with the number on their jacket and receive a reward of €10 thousand. Needless to say, the action created a real sensation.
In 2011, a commercial was shot to promote the new Zoom Kobe Bryant VI sneaker model. As usual, the company did not skimp on costs: the video was shot by the famous director Robert Rodriguez. The final product, in the form of a trailer for the film “Black Mamba,” in which Bryant played a basketball player fighting off hordes of enemies led by Bruce Willis, was received with delight by the audience.
Another one appears in 2012 total product Nike and Apple - Fuelband, a sports bracelet that can be synchronized with any Apple gadget. It was presented as a device that tracks the burning of every calorie, after which it sends the data to the selected gadget. The giants were sued for this bracelet: the plaintiffs noticed that the advertising was not true, the product did not track all the calories burned during exercise. As a result, the companies agreed to pay all victims $15 in cash or $25 in the form of a gift card.
In the same year on Twitter there was
Reebok operates factories in Russia, and all Puma is produced in Asia.
Sportswear brands have moved their production to countries with cheap labor © flickr.com
Most American and European sportswear brands have moved their production to countries with cheap labor. Even some Ukrainian and Russian enterprises register a brand abroad, in China.
The history of this great German brand can begin with the birth of its founder, Adolf Dassler. After World War I, the Dasslers decided to organize their own business, namely a shoe-making workshop. By 1925, Adi, as an avid football player, made his first pair of shoes with spikes. A local blacksmith forged it for him, and thus the first boots were born. They turned out to be so comfortable that they began to be produced at the factory along with slippers.
In the late 40s, after the death of the head of the family, the brothers quarreled and divided the company. They divided the factories, each brother got one, and agreed not to use the old name and logo of Dassler shoes. Adi decided to name his brand Addas, and Rudi - Ruda, but soon their names changed to Adidas and Puma, respectively. The Dassler brand was successfully forgotten.
Columbia
Columbia Sportswear Company - An American company produces and sells outdoor clothing.
The company was founded by second-wave German emigrants with Jewish roots - Paul and Marie Lamfr. The Columbia company was founded in 1937 in Portland and was engaged in the sale of hats. The name Colombia Hat Company appeared in honor of the river of the same name, which flowed near the place of residence of the Lamfrom family.
The hats that Colombia sold were of poor quality, so Paul decided to start his own production, namely, sewing shirts and other simple work clothes. Later, the founders' daughter made a fishing jacket with many pockets. This was the first jacket in the company's product range, and its sales brought some fame to the factory.
Nike Inc. is an American company, a world-famous manufacturer of sporting goods. Headquarters in Beaverton, Oregon, USA. The company was founded in 1964 by student Phil Knight. He was a middle distance runner for the University of Oregon. In those years, athletes had virtually no choice in sports shoes. Adidas was expensive, about $30, and regular American sneakers cost $5, but they hurt my feet.
To remedy the situation, Phil Knight came up with a brilliant scheme: order sneakers from Asian countries and sell them on the American market. At first, the company was called Blue Ribbon Sports and did not officially exist. The sneakers were sold literally from hand, or rather from Knight's minivan. He simply stopped on the street and started trading. During the year of its existence, the company sold $8,000 worth of sneakers. Later, the Nike logo was invented.
Nike became widely known for its "waffle" sole, which made the shoe lighter and gave it a little more propulsion while running. It was this invention that brought Nike to the forefront.
The history of Puma begins simultaneously with the history of Adidas, since the founders of the brands are brothers. (see Adidas history). Rudolf founded his own company, Puma, in 1948. . In 1960, the world saw the company's new logo, an image of the beloved member of the cat family - the puma.
For many years the company worked exclusively for athletes. By the early 90s, Puma found itself on the verge of bankruptcy. Consumers viewed the brand as imitative and expressionless. The new management set a new goal - to make the Puma brand the most creative and desirable. Central to the revival was the decision to develop shoes and apparel aimed at niche segments such as snowboarders, racing fans and yoga enthusiasts.
Reebok is an international sportswear and accessories company. The headquarters is located in the Boston suburb of Canton (Massachusetts). It is currently a subsidiary of Adidas.
Reason for founding British company Reebok became a completely logical desire for English athletes to run faster. So in 1890, Joseph William Foster made the first running shoe with spikes. Until 1895, Foster was engaged in handcrafting shoes for top-level athletes.
In 1958, two of Foster's grandchildren founded a new company and named it after the African gazelle - Reebok. By 1981, Reebok's sales reached $1.5 million, but Reebok's biggest success came the following year. Reebok introduces the first sports shoe specifically for women - a fitness sneaker called the FreestyleTM.
The material uses information from open sources, manufacturing companies, finance.tochka.net sources
Brand: Nike
Tagline:- Just do it (English) Just Do It)
Industry: Production of sporting goods
Products: Clothes, shoes, accessories
Owner company :Nike, Inc.
Year of foundation: 1964
Headquarters: USA
Performance indicators
Nike Inc financials
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Gross profit |
Net profit |
Asset value |
Equity |
Number of employees |
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Total shareholders equity |
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| 2017 | 34,350 | 15,312 | 4,240 | 23,259 | 12,407 | 74,4 |
| 2018 | 36,397 | 15,956 | 1,933 | 22,536 | 9,812 | 73,1 |
Nike brand value according to company estimates
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Interbrand, $ billion |
Millward Brown Optimor, $ billion |
Brand Finance, $ billion Since 1993, exclusive distributor of Nike on Russian market There was a company called Delta-Sport, but since 2004 Nike decided to abandon its services and conquer the market on its own. In Russia, the company is represented by Nike LLC, which supplies Nike products for sale through retail chains of partner companies (the largest of them is Sportmaster). history of the companyThe company was originally founded in 1965 by student Phil Knight, a middle-distance runner for the University of Oregon, and his coach Bill Bowerman. Then it was called Blue Ribbon Sports and specialized in ordering sneakers in Asian countries and then selling them on the American market. Having invested $500 in the business, they purchase 300 pairs of sneakers from the famous Japanese company Onitsuka Tiger. The company's first self-developed product was a sneaker based on a waffle-shaped sole design that Bowerman had learned from a waffle iron. Bill Bowerman (William Jay Bowerman)
Phil Knight IN In 1966, the company opened its first retail store. In 1971, the Nike trademark first appeared - football boots were released under this name. In 1978, Blue Ribbon Sports was officially renamed Nike, Inc. The name comes from the ancient Greek spirit of victory Nicky, not from English word, which would read "Nike". Ignorance of this fact led to the widespread spread in the Russian-speaking environment of the incorrect transcription of “Nike”, which was even used in the name of the company’s official representative in Russia. On October 23, 2007, the company bought the Umbro brand, a manufacturer of sportswear and footwear, for $580 million. $44 million is what Nike reportedly paid the Indian cricket team in 2009 under a five-year sponsorship contract. Nike puts 13,000 models of shoes and clothing on sale every quarter. In 2010 Nike signed an 8-year sponsorship contract with Maria Sharapova for $70 million. Brand historyThe history of Nike is inextricably linked with the name of Phil Knight. The author of the Nike myth is Phil Knight. He was a mediocre middle-distance runner at the University of Oregon, and over the years, with a net worth of more than $3.8 billion, he became the sixth richest American. Metamorphosis Explained is a business he started with his athletic trainer Bill Bowerman in 1964. American-made sports shoes then cost only 5 USD, but their quality left much to be desired. Many athletes returned from the tracks with bloody calluses on their feet. German shoes were of much higher quality, but they cost six times more - 30 USD. Knight-Bowerman's idea was simple: high-quality shoes could be designed in the United States, manufactured in Asia, and sold in America at lower prices than popular West German sneakers. Getting economic MBA education at Stanford in the 1960s, Knight took classes in Frank Shallenberger's class. The task at the next seminar was a business development strategy for a small private company, including a marketing plan. According to Nike legend, it was at this marketing seminar that Knight came up with the concept for the company. Japan was chosen as the Asian manufacturer because labor there was much cheaper than in America. In 1963, Knight traveled to Japan. In the country Rising Sun He entered into an agreement with the Onitsuka factory to sell high-quality Japanese Tigers sneakers in the United States. Returning to America, the 26-year-old businessman began selling Japanese shoes out of the back of his truck near the treadmills. Their project, the progenitor of Nike, was called Blue Ribbon Sports. The company's name was born during negotiations with the Japanese, where Knight represented himself on behalf of a defunct American sneaker distributor, Blue Ribbon Sports, interested in selling Japanese shoes in the United States. By 1964, Knight had sold $8,000 worth of sneakers and sent an order for a new batch. Bowerman and Knight worked as a team, but they soon hired sales manager Jeff Johnson. In 1965, Bowerman and Knight changed the name of their company, naming it after greek goddess Nicky's victory. The new name of the company - Nike, according to legend, was invented by Jeff Johnson, who saw the winged goddess of victory Nike in a dream. In 1971, Portland University design student Caroline Davidson designed a logo for an unknown company for a modest fee of $35. Twelve years later, in 1983, Phil Knight invited her to a restaurant and presented her with a gold ring, in addition to the emblem invented by Caroline, decorated with a diamond, and also added to his gift an envelope with a certain amount of company shares. This was a fair reward for the sign, the mere presence of which on sports shoes increases their consumer appeal several times. This logo, familiar to everyone today and symbolizing the wing of the goddess, was called SWOOSH, which can very roughly be translated into Russian as “flying with a whistle.” Fitness revolution and jogging fashion of the early 70s. stimulated rapid business development. By 1969, Knight had already sold $1 million worth of sneakers. But the company's net income was small. In 1975, Bill Bowerman came up with an idea that would become a turning point in the history of Nike. At breakfast, looking at his wife's waffle iron, he decided that if he made the sole of his sneakers grooved, this would, on the one hand, improve the push, and on the other, reduce the weight of the shoe. Soon he fitted the “waffle” sole to sports slippers and invited track and field athletes to try it out. This ingenious invention instantly made Nike an industry leader with a market share of 50% (1979). And after Adidas was left behind in 1980, Nike had only one competitor left - Reebok. Until Michael Jordan came along. In 1988, a campaign featuring baseball star Bo Jackson debuted. Three videos showed Jackson running, biking and playing basketball. The videos ended with the phrase: “Bo knows.” The next clip played on the coincidence of the names of Bo Jackson and Bo Diddley, a famous musician. The headline of the message was that "Bo doesn't know Diddley." However, the company did not have to enjoy the laurels of the winner for long. In 1998, Nike's popularity was falling, as it simply became unfashionable to wear what thousands of people around them were wearing. But this was not a surprise for Nike, which was fully armed. In 1998, Knight introduced a new line of products - ACG - "all-weather accessories." In addition, Nike restructured part of its business into separate groups: Nike Golf, Jordan Brand, Nike Hockey, Nike ACG, etc. appeared. In 1999, Nike copes with troubles. The Internet is being successfully mastered. The company acquires a considerable number of web addresses. In January 2000, a 30-second video appeared on television featuring track and field sprinter Marion Jones running through the streets to escape a maniac with a chainsaw. The video ends abruptly, sending viewers to whatever.nike.com for the rest of the story. On the electronic page, visitors were given a unique opportunity to watch a television clip in Apple QuickTime and come up with its ending themselves. The best options were broadcast there, on the Internet. In May 2018, Nation News reported that Nike had developed a conveyor belt that pulls the foot into the shoe. As noted in Nike's patent application, a small motorized conveyor belt is built into the insole or sole of the shoe. As soon as a person places the forefoot into the shoe, it automatically starts and pulls the foot into the shoe. The source of energy for the shoe conveyor was a battery that can be charged not only from the mains, but also while running in these shoes due to the piezoelectric effect. At the moment, Nike has not officially announced plans to create such sneakers, so far only a patent application is known. In December 2017, a sports hijab went on sale - an element of clothing produced by Nike has no analogues. Jeff Johnson, who was tasked with coming up with a name for the new company within 24 hours, dreamed of the ancient Greek goddess Nike. This is how the name Nike was born. Knight's first investment in his company was $500. And Phil’s first counter was the trunk of his car. Knight himself accidentally came up with the slogan for his company. He hung up the phone after listening to a version he didn't like and said "Just do it!" Bill Bowerman put a rubber strip into a waffle iron to make fun of his wife. The waffle sole was the company's first stand-alone product, and to this day it is considered the most the best option for sports shoes. The sneakers worn by Michael Jordan, who collaborated with the company, were black and red colors, however such colors were banned in the NBA. He was fined one thousand dollars for each game in them, but Jordan continued to play in Nike shoes. The scandal with the basketball player's sneakers was good for the company. In 2008, the Russian Central Election Commission agreed with Nike on the main logo of the presidential company Russian Federation, which was very similar to the legendary “tick”. The name comes from the name of the Greek goddess of victory, Nike, and not from the English word, which would read "nike". Ignorance of this fact led to the widespread spread in the Russian-speaking environment of the incorrect transcription of “Nike”, which was even used in the name of the company’s official representative in Russia. Nike has been criticized for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico. The activist group Vietnam Labor Watch has documented that factories with which Nike worked were violating Vietnam's minimum wage and overtime laws as early as late 1996, although Nike says it has abandoned such practices. Nike is a world-famous American company. This is one of the largest companies designing, producing and distributing sportswear, shoes and accessories. Nike history of creationThe Nike company appeared in a completely unusual way. Ideally, new firms enter the market in two possible options. A new company either takes up free space in the market by offering something new, or offers a product of higher quality than its competitors. What makes Nike unique is that when creating the company, its founder used both options at once. Phil Knight, an ordinary student at the University of Oregon, founded the Blue Ribbon Sports company in 1964. It is this company that later turns into an entire empire, which is now known under the name “Nike”. What is the backstory of Nike? During his student years, Phil Knight was seriously interested in sports. He was even a middle distance runner on the university team. Knight's coach during those years was Bill Bowerman. In those days there was no special choice of sportswear. Professional athletes could afford $30 sneakers from Adidas, but ordinary American citizens were forced to settle for cheap and low-quality goods of unknown origin. It was then that Knight decided to seriously work on correcting the current situation. Soon he developed a not very complex, but quite interesting commercial scheme. According to popular legend, at a regular marketing seminar, Knight came up with the concept of his future company. The idea was that Knight would order sports shoes from Asia and sell them in the United States at an affordable price. It was then, in 1964, that Phil Knight and coach Bill Bowerman took the first step, creating small company, which was called "Blue Ribbon Sports". Some time later, Knight enters into his first contract with the Japanese company Onitsuka Tiger, which undertakes to sew sports shoes for colleagues from the United States. Since Knight's company was not registered, in the first months sales were carried out on the street, where the 26-year-old businessman sold sneakers from a minivan. Oddly enough, Knight’s business began to develop at a rapid pace. During the first year of the company's existence, the founders' profit amounted to 8 thousand dollars. After calculating the revenue, Knight realized that it was time to develop and hire workers. Soon a sales manager appeared in the company - Jeff Johnson, whose appearance brought several changes to the company at once. The name changed first.
The second change was in policy. Johnson was confident that the company's promotion directly depended on an individual approach to each client. To do this, Johnson found out and wrote down the phone numbers of all buyers, most of whom were athletes, called them and asked about the quality of the purchased goods. He was also interested in product defects, upon discovery of which Johnson offered new models. Johnson kept a whole file cabinet where he recorded all customer reviews and suggestions. It was this strategy that became the key to the company's success. DevelopmentThe end of the 60s of the last century was marked by development in the history of Nike. It was then that the first branded store opened in Santa Monica, California. In 1968, the company released a new type of sneakers.
In the early 70s, a company partner in Japan decided that the overseas company was making a lot of money. This was exactly the case, because compared to the first year, the company increased its annual income many times over, which in 1971 amounted to $1.3 million. After this, the Onitsuka Tiger company tried to buy out the share of its American partner and raised prices for the supplied goods. Knight foresaw this development of events and had previously managed to contact another Japanese company, Nisho Iwai. At the same time, the founders of the brand, together with the sales manager, decided to start their own production in the United States. Moreover, they had everything they needed for a successful start.
The company’s popularity grew after another innovation – sneakers with “waffle” soles. A similar sole was produced using a completely new technology. Such a sole made it possible to significantly reduce the weight of the shoe, while simultaneously increasing momentum during running. The idea to create a revolutionary technology belongs to Knight's coach. It is said that Bowerman came up with it completely by accident when he was looking at his wife’s waffle iron. The company's debut occurred in 1972, when the United States Olympic training camp took place before the Summer Games. The following years brought the company dizzying fame. In 1978, the company entered the international market for the first time. Next year, Nike will launch sportswear production. Knight and his wife worked on the creation of the first clothing models. In those years, fitness was gaining popularity. This was the main impetus that influenced the sales of Nike shoes with lightweight soles, which strengthened the company’s position in the global market. Since that time, the company considered Adidas its main competitor. Since then, companies have been competing for a leading position in the sports products market. In 1973, Nike managed to gain half the market share. Nike Air sneakersEach of us has heard the name of the legendary series of sports sneakers “Nike Air”. What is her story? In 1979, former NASA aeronautical engineer Frank Paris develops a completely unusual method for making sneaker soles. He offers his technology to many sports shoe companies and even Nike, but he is rejected everywhere. But Paris's determination and persistence ultimately lead to Nike agreeing to use the engineer's method in production. The innovation of the aircraft engineer was that he was the first to propose the use of a special shock absorption system, which was supposed to significantly extend the “life” of the shoes.
Michael Jordan is the star of the companyA well-known rule of successful advertising is that to promote a product well, you need to collaborate with stars. Nike decided not to experiment again and not take risks by starting to collaborate with sports stars and organizations.
Immediately after signing a contract with Nike, Jordan began actively advertising the company. He wore Nike sneakers not only during basketball games, but also in Everyday life. The company even released an exclusive series of sneakers called “Air Jordan” especially for him. The irony, however, was that these sneakers were the reason Jordan continually paid $1,000 in fines. The reason for the fines was the black and red coloring of the sneakers, which was officially banned in the NBA. Mike was not at all embarrassed by this, since advertising brought him quite a lot of income. Nike todayToday the Nike brand is known throughout the world and is one of the main symbols of sports. The company has consolidated its position in markets around the world. It offers everything you need for almost all sports. The company has repeatedly acted and continues to act as a sponsor of various sporting events. Nike is successfully promoting its products in the field of football, where its competitor has traditionally been in the lead. A significant share of the company's success comes from the multi-million army of fans of the Nike brand. It was Nike that first created a special social network dedicated to basketball. The company does everything to always be aware of new trends in the fashion world, never moving away from customers and fans. Thanks to the social network, every fan has a unique opportunity to personally participate in the creation of the “sneaker of their dreams.” All you need to do is come up with a model and order it from the manufacturer. Nike successfully cooperates not only with sports companies, but also with technology manufacturing companies. The fruit of cooperation with Apple was the “Nike+iPod” set, which is a set of audio player and sneakers that are connected to each other. In this way, each athlete gets the opportunity to monitor various statistical data about the progress of the training directly on the player screen.
As with any story, there are dark sides too. Nike company has been and continues to be criticized for numerous violations of human rights and safety regulations. Since the company's products are manufactured in the third world, it has been criticized more than once for very low prices. salaries($40 per month). Also the reason for criticism was a scandal involving the use of child labor in production. The brand's management, of course, is trying to maintain control over everything, but Nike's volumes simply do not allow this. In any case, there is no denying the fact that Nike is one of the largest sporting goods companies in the world. The company has factories in 55 countries around the world. The number of company employees is 30 thousand people. The brand's headquarters is located in Beaverton, Oregon, United States.  Loading... |
The company concluded