With a world full of new brands and companies emerging every day, it can be hard to set your company apart from the crowd. Industry leader Nike Inc. has been able to keep its standing as a top brand on the market. From the iconic swoosh logo to motivational empowering advertisements, Nike is a brand that is easily recognized by consumers across the globe. The brand has labeled itself with celebrity athlete endorsements and is often associated with high value, innovative products, and stylish designs. Nike specializes in selling athletic footwear, apparel, equipment, and accessories. After acquiring companies like Converse and Hurley, they also started to sell streetwear as well.
Nike quickly began to grow internationally through its aggressive marketing strategy and overall savvy brand design. By 1980, they surpassed Adidas as the leading company in U.S. athletic wear sales which surged their quest for global expansion. Nike currently owns 700 storefronts scattered around the globe along with 45 international offices. They also outsource their products from factories in Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia. Its four main global regions include 1) North America, 2) North, the Middle East & Africa, 3) Greater China, and 4) the Asia Pacific & Latin America (referenceforbusiness.com).
Overall, Nike’s global marketing strategy consists of six main components: innovation, zero-waste business model, athletic and street fashion, digital items, social media presence, and strategic sponsorships/partnerships. Nike strives to provide sustainability in its products and service while also continuing to create new products. Nike utilizes emotional marketing and celebrity endorsements. They target professional and collegiate athletes from all over the world, most notably Michael Jordan and Cristiano Ronaldo.
Nike spends around $3 million in marketing each year. Although this may seem like an expensive investment, Nike has established its brand heavily through its marketing strategy. In 2019, about $21 billion was generated in profits from Nike’s international markets alone, excluding profits from the United States. A majority of their revenues are generated by sales in the United States. In the fiscal year of 2019, the North American segment posted $15.9 billion in revenue, which was 41% of the total global revenue. The next largest percentage of sales is from North, Middle East & Africa with $9.8 billion which was 25% of revenue. The Greater China segment produced $6.2 billion which was 16% of the revenue. Lastly, Asia Pacific and Latin America posted $5.3 billion which was 13% of total revenue (Tighe, 2021).
NIKE, Inc. – Company Profile. Reference for business. (n.d.). Retrieved March 28, 2022, from https://www.referenceforbusiness.com/history2/99/NIKE-Inc.html
Tighe, D. (2021, August 3). Nike's global revenue, by region 2021. Statista. Retrieved March 28, 2022, from https://www.statista.com/statistics/241692/nikes-sales-by-region-since-2007/