Nike net worth is $35 Billion. Nike is a big brand of sportswear which has worldwide customers. It was founded in 1964. Phil Knight is founder of this US based sportswear brand.
Introduction Of Nike
Quick Facts
| Company Nаmе: | Nіkе, Іnс. |
|---|---|
| Fоundеd Dаtе: | 25 Јаnuаrу 1964 |
| Fоundеrѕ: | Рhіl Кnіght, Віll Воwеrmаn |
| Numbеr оf Еmрlоуееѕ: | 80000+ |
| Аrеа ѕеrvеd: | Unіtеd Ѕtаtеѕ оf Аmеrіса аnd thе wоrld |
| Nеt Wоrth іn 2021: | $35 Віllіоn |
The company is based in Beaverton, Oregon, near Portland. Its fiscal year 2020 sales exceeds US$37.4 billion and it is the world’s largest supplier of athletic footwear and clothes (ending May 31, 2020). Globally, it employs 76,700 people by 2020. The brand alone would be valued over $32 billion by 2020, making it the most valuable in sports. Nike was worth $29.6 billion in 2017. Nike ranked 89th on the 2018 Fortune 500 list of the world’s largest companies by revenue.
Bill Bowerman and Phil Knight founded “Blue Ribbon Sports” on January 25, 1964; it became Nike, Inc. on May 30, 1971. Nike honors the Greek goddess of victory. Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, and Nike CR7 are all Nike brands. Nike once owned Bauer Hockey, Cole Haan, Umbro, and Hurley International.
Summary
The company also owns Niketown stores and produces sports gear and equipment. Nike sponsors a number of well-known athletes and sports teams throughout the world, utilizing the “Just Do It” slogan and the Swoosh logo.
Finance Of Nike
Nike announced a quarterly earnings rise on December 19, 2013, citing a 13% increase in global product orders since April. Between December and April, future shoe and apparel orders reached $10 billion. Nike (NKE) shares rose 0.6% to $78.75 in extended trade.
Nike said in November 2015 that it will buy back $12 billion worth of stock and split it two-for-one on December 24. SEVENTH SEPARATION FOR THE COMPANY. Nike said in June 2018 that it will buy back $15 billion in shares over four years, starting in 2019.
Nike reported US$1.933 billion in earnings on $36.397 billion in revenue, up 6.0 percent from the previous fiscal cycle. In October 2018, Nike’s market value surpassed US$114.5 billion.
| Year | Revenue in mil. USD | Net income in mil. USD | Total assets in mil. USD | Price per share in USD | Employees |
|---|---|---|---|---|---|
| 2005 | 13,740 | 1,212 | 8,794 | 8.75 | 26,000 |
| 2006 | 14,955 | 1,392 | 9,870 | 9.01 | 28,000 |
| 2007 | 16,326 | 1,492 | 10,688 | 12.14 | 30,200 |
| 2008 | 18,627 | 1,883 | 12,443 | 13.05 | 32,500 |
| 2009 | 19,176 | 1,487 | 13,250 | 12.14 | 34,300 |
| 2010 | 19,014 | 1,907 | 14,419 | 16.80 | 34,400 |
| 2011 | 20,117 | 2,133 | 14,998 | 19.82 | 38,000 |
| 2012 | 23,331 | 2,211 | 15,465 | 23.39 | 44,000 |
| 2013 | 25,313 | 2,472 | 17,545 | 30.50 | 48,000 |
| 2014 | 27,799 | 2,693 | 18,594 | 38.56 | 56,500 |
| 2015 | 30,601 | 3,273 | 21,597 | 53.18 | 62,600 |
| 2016 | 32,376 | 3,760 | 21,379 | 54.80 | 70,700 |
| 2017 | 34,350 | 4,240 | 23,259 | 54.99 | 74,400 |
| 2018 | 36,397 | 1,933 | 22,536 | 72.63 | 73,100 |
| 2019 | 39,117 | 4,029 | 23,717 | 86.73 | 76,700 |
| 2020 | 37,403 | 2,539 | 31,342 | 106.46 | 75,400 |
Nike reported a 5% drop in Chinese sales in March 2020 due to COVID-19 outbreak-related retail closures. It was the first cut in six years. Simultaneously, the company’s internet sales grew 36% in Q1 2020. Also, sales of personal training apps surged by 80% in China.
Nike’s strategy for brand promotion
A large part of how Nike promotes its products is through sponsorships with professional athletes, teams, and universities.
Advertising
During the New York Marathon broadcast in 1982, Nike aired its first three national television commercials, produced by newly established advertising company Wieden+Kennedy (W+K). Nike was the first company to win Advertiser of the Year at the Cannes Advertising Festival on two separate occasions, in 1994 and 2003.
Nike also took the Emmys in the best commercial category in both 2000 and 2002. “The Morning After,” a hilarious look at what an athlete would face on January 1, 2000, should all of the dire Y2K predictions come true, was the inaugural entry. ‘Move,’ a 2002 ad featuring well-known and everyday people doing a variety of physical activities, was the second one.
This is a Beatles song.
Using the Beatles’ “Revolution” in a commercial, against the wishes of Apple Records (the Beatles’ record company), Nike received controversy in 1987. Capital Records Inc. received $250,000 from Nike for a one-year usage license to the Beatles’ version of the swoosh. The tracks’ North American license rights belonged to Capitol Records Inc.
Apple Records sued Nike Inc., Capitol Records Inc., EMI Records Inc., and Wieden+Kennedy for $15 million the same year. This case had “no merit,” according to Capitol-EMI, because Capitol licensed “Revolution” with Yoko Ono, an Apple Records shareholder and director, in full collaboration and encouragement.
The use of new media in marketing
As a multi-channel marketing pioneer, Nike pioneered the use of the internet, email, and broadcast and narrowcast communication technologies.
Publicity for a Miniscule Threat
When the founder of Dischord Records, guitarist/vocalist for Fugazi and the front man for the defunct punk band Minor Threat and front man of the Nike Skateboarding 2005 East Coast preview tour criticized Nike for using imagery and text from Minor Threat’s self-titled album cover art from 1981, Nike received a backlash.
On the 27th of June, Nike Skateboarding issued an apology to Dischord, Minor Threat, and their fans, claiming that they had made an effort to remove and destroy all fliers. It was made by skateboarders and Minor Threat fans out of appreciation and respect for the band, according to the advertising. Nike and Minor Threat were able to come to an agreement outside of court.
Oxford Circus in London is home to Niketown.
While promoting its “Get High” and “Ride Pipe” campaigns, Nike introduced a new line of T-shirts with the phrases “Dope,” “Get” and “Ride,” all of which are double entendres for drug use. While visiting Niketown in Boston, Mayor Thomas Menino took issue with the presence of the t-shirts and demanded that they be taken down.
Menino told the Boston Herald, “We don’t need a major company like Nike, which wants to appeal to a younger demographic and promotes the drug issue.” In a statement, Nike officials stated that the t-shirts were created to honor extreme sports and that the company does not support drug use. Nike had no choice but to stop making the shirts.
The purchase of an NBA uniform
To begin with the 2017–18 season, Nike signed an eight-year partnership with the NBA, making it the league’s official uniform supplier for the first time. The company replaces Adidas, who supplied the league’s uniforms since 2006. Nike’s logo will appear on NBA jerseys for the first time, a milestone for the league.
The Charlotte Hornets, who are owned by Michael Jordan’s longtime Nike endorser, are the lone exception, since they wear the Jumpman logo on their clothing and other merchandise.
Nike stopped using the word “Revolution” in their advertising in March of that year. Nike was later granted permission by Yoko Ono to use John Lennon’s “Instant Karma” in another ad.
TEN INTERESTING REASONS FOR THE SUCCESS OF THE NIKE BRAND
Nike is a well-known brand that has achieved global recognition. The purpose of this essay is to describe how this brand has grown to become the leading company in sports and apparel. Bill Bowerman and Phil Knight founded Nike in 1964 with a $1200 investment.
The business was originally called “Blue Ribbon Sports,” but changed its name to “Nike Inc.” in 1971, after a Greek goddess of victory. However, the question is how the Nike brand achieves commercial success.
- Nike’s Logo And Brand Have Been Developed Through An Extensive Marketing Strategy
Nike promotes its products via sponsorship agreements with well-known individuals, professional athletes, and high school competitions. Nike’s first celebrity endorser was Ilie Nastase, a Romanian tennis star. Nike also invests much in advertising at an early point of their development. Nike currently relies on sponsorships, email marketing, and web advertising to sustain their brand.
Nike’s sponsorships include the following:
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Tiger Woods – Golf – Michael Jordan, LeBron James, and Kobe Bryant – Basketball – Albert Pujols and Joe Mauer – Baseball – Albert Pujols and Joe Mauer
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Alex Ovechkin – Hockey – Ronaldinho and Cristiano Ronaldo – Soccer –
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Roger Federer and Serena Williams in tennis; Peyton Manning, Drew Brees, Eli Manning, and Joe Flacco in football
- Nike Emphasizes The Product’s “Enthusiastic Benefits”
Nike promotes a way of life; it capitalizes on an eager segment of the clientele that yearns to live more advantageously and to discover their own “meaning.” It’s worth noting that Bill Bowerman did not sell his shoes through his showcasing style, but rather through the enthusiastic benefits of connecting running and healthy life to their brand. Nike draws customers by associating their products with the notion of healthy living.
- Nike Integrates New Technologies Into Its Promotional Strategy
Nike has developed and cultivated a slew of new ideas centered on its image. For instance, Nike developed a shoe that automatically laces up when you place your foot in it. This technique is called HyperAdapt 1.0, and it took them ten years to develop. However, their diligence eventually pays off.
- Nike Provides A Variety Of Products To Meet Your Daily Needs, Enabling Them To Capture A Sizable Market Share
Nike offers a variety of brandishing products to suit any sporting occasion. It includes sporting equipment and apparel for baseball, ice hockey, Olympic-style competitions, cricket, and football, among others. Apart from sporting equipment, they also sell clothing, purses, wallets, gloves, and sunglasses. By delivering more products to more people in a broader range of business sectors than any other gaming company, they may capture a far bigger share of the entire industry market than other companies.
- Nike Placed A Premium On Quality And Creating Products That Aid Athletes In Their Performance
Nike, like the majority of pioneers in this competitive market, values the customer and understands the value of providing a high-quality product. Their image is associated with providing superior products to competitors that enable them to perform considerably better. The message is to customers that Nike should strive to better their lives via something they are passionate about (whether it is running or another activity) and to improve their overall well-being.
- Nike Outperforms And Responds Significantly Better Than Their Competitors
For example, Nike established their website in 1999, ahead of its competitors: Foot Locker followed suit in 2000, and Adidas followed suit in 2006. This is seven years earlier than Adidas. Additionally, it is evident in the site deals— Nike had more than four times the deal in 2011 than Adidas. Nike was one of the first sporting goods companies to use web-based social networking.
- Nike’s Emotional Branding Concept
Nike provides a variety of papers recommending that it has a passionate branding that capitalizes on the possibilities of daring (you the shopper having the capacity to discover your quality and significance).
It is noted that they relate stories of an individual’s war and perseverance (whether skilled or novice) against a “inner scoundrel” and how it ends in triumph. Nike’s tagline “Do what has to be done” aims to strike a chord with everyone, serving as a mantra for individuals to follow when pursuing their goals. This slogan, as we all know, is “Just do it.”
Additionally, Nike strives to stay ahead of the competition by incorporating cutting-edge technology into its products (i.e. automatic lacing shoes).
Frequently Asked Questions - FAQs
People ask many questions about nike net worth, We answered few of them below:
Is Nike a wealthier company than Adidas?
As a result, Nike generates more worldwide income than the combined revenues of its two biggest competitors, Adidas and Puma. … In terms of income, Adidas is the largest sportswear producer in Europe, and the second largest in the world, behind only Nike. The company generates almost 20 billion euros in yearly sales and has a brand worth of around 16.5 billion dollars, according to Brand Finance.
Is it more popular to wear Nike or Adidas?
When it comes to revenue, Nike has a larger overall business and is the market leader among sports brands, with revenue from footwear reaching $24.2 billion in 2018, compared to Adidas’ footwear revenue of $15 billion in the same year. Nike also has a larger overall business and is the market leader among sports brands.
Who is the owner of Nike’s net worth?
Nike’s founder and family made $6.5 billion in a single day and now have more than $11 billion in cash on their hands. Counting his family’s net worth at $58.8 billion, Phil Knight is the world’s 23rd richest person, behind only Bill Gates and Warren Buffett. A millionaire American businessman, Phil Knight is 83 years old and was a co-founder of Nike, the world’s largest athletic footwear and sports clothing firm.
Is Nike the sole owner of Jordan?
Nike, Inc. is a sportswear company that was founded in 1964. Basketball shoes, sports wear, casual wear, and fashion items under the Air Jordan brand are manufactured by Nike in the United States. Air Jordan was founded in Chicago and named after Hall of Fame former basketball player Michael Jordan, who played for the Chicago Bulls at the time of its inception.
What is the net worth of Phil Knight?
Knight has a net worth of $60.8 billion as of July 2021, according to Forbes. In 1990, Knight established the Philip H. Knight Charitable Foundation Trust to support charitable causes. At the time of publication, the Portland Business Journal said that Knight was “the state’s most generous donor in history.”
Is Nike available for purchase at Decathlon?
As a result, we can observe that none of the top three athletic companies, namely Nike, Adidas, and Puma, are represented among the top ten brands available in Decathlon’s selection. Furthermore, one of Decathlon’s distinguishing qualities is that it offers just one brand per type of sport.
What is it about Nike that is so bad?
Nike has come under fire for partnering with sweatshop facilities in foreign countries to manufacture its items. The factories were found to be in violation of minimum wage and overtime regulations. Nike’s so-called sweatshop factories are mostly located in China, Vietnam, and Indonesia, with a few in other countries. Nike, on the other hand, disputes that it supports sweatshop labor.
Is Nike the owner of Vans?
Vans: A skateboarding icon since the 1970s. Vans, on the other hand, is concerned about the latest upstart competitor because of something odd about it. Nike Inc. is the company that owns it… The skate-shoe business alone is insignificant when compared to Nike’s yearly sales of $9.5 billion.
Who is the Chairman and CEO of Nike?
A speaker at a Bain & Company training program made a remark that struck Nike President and CEO John Donahoe early in his career and stuck with him ever since: elite athletes tend to regard asking for aid as a sign of strength.
Is Nike a company that employs child labor?
For each supplier plant or facility that manufactures NIKE items, we have established minimal requirements. Forced and child labor, excessive overtime, compensation and freedom of association are only a few of the criteria.
Conclusion
Nike is a well-known sportswear and accessories manufacturing company that takes pride in being the number one in its field. The brand with a “tick” logo has received a significant amount of positive feedback from its customers, propelling it to the top of the world’s largest sports shoe supplier rankings. As of 2017, the brand is expected to employ more than 74,400 people around the world.