The evolution of Nike

Nike is the largest supplier and manufacturer of athletic shoes, apparel, and other sports
equipment in the world. The headquarters are situated in Beaverton, Oregon, USA. The most
notable brands that Nike owns are Jordan and Converse, acquired in 1984 and 2003, respectively
.
According to the data provided from Statista, Nike’s revenue worldwide has considerably grown
in the period of 2005 to 2022. In 2005 the revenues amounted to 13,740 million U.S dollars,
whereas in 2022 it reached the record value of 46,710 million U.S dollars. As a consequence of
the COVID-19 crisis and the lockdown measures that have been imposed, 2020 was the only
year when Nike has registered a lower revenue than in previous years. In 2018, the company has
registered higher selling and administrative expenses due to the new strategies that they have
imposed. As the CEO Mark Parker states, the year 2018 has been marked by a complete digital
transformation and it is meant to be a steppingstone in the next wave of long-term sustainable
growth and profitability that will define Nike in the next years.
Taking into account the value of the top 10 apparel brands in 2022, Nike has been by far the most
successful, the brand value reaching 33,176 million U.S dollars. The 2nd place is occupied by
Louis Vuitton with a brand value of 23,426 U.S dollars. The main competitor, Adidas, occupies
the 5th place being valued at 14,636 million U.S dollars.
The strategy through which Nike has been able to capture such a great share of the market (about
60%) has been through product differentiation and intensive growth, as they offer more products
to more people in more markets than any other sports company. They sell in more than 170 and
have achieved economies of scales in manufacturing and distribution. Although they produce in
14 countries, 96% of shoes are manufactured in China, Indonesia, and Vietnam. The year 2018
recorded the highest number of Nike retail stores that exist worldwide: 1182, almost double than
in 2009. However, since 2019 there has been a continuous decrease in the number of stores, as a
result of both the pandemic and the rise of e-commerce. The number of employees has
experienced the same growth, in 2022 reaching 79,100 worldwide. Regarding regional
distribution of revenue, the highest share, which represents roughly 15%, has been continuously
generated in North America. It is also important to know that Nike is engaged in CSR, offering
more than 89 million U.S dollars to help over 17 million kids to exercise.