The apparel industry is currently crowded with brands that are familiar to Nike. Nike’s presence in fact makes the competition map of the apparel industry increasingly heated because Nike managed to become a sponsor of several sports clubs around the world. Not only that, Nike is even said to have managed to become a sports support device around the world.
Behind the success of the name Nike in fact can not be separated from the hard efforts in developing the brand that is famous for the Air Max series shoes. One of the most meritorious people behind Nike’s big names is Phil Knight who is none other than the owner of the Nike brand. Nike’s worldwide success made Phil one of the richest men in America.
For those of you who want to know more about how Phil developed the Nike brand, our article this time will discuss further. Here’s the full review:
The Beginning of Nike
The idea of founding the Nike brand originally came not from Phil Knight but from his colleague who worked as a coach at Freshman Football at Standford University, namely Bill. Seeing the pretty good business prospects led Phil to approve the invitation and start creating a business concept.
One of the interesting things about the establishment of the Nike brand is its founder who still has his own expertise where one has the ability in the field of business and the other understands the target market that the brand wants to target, namely the field of sports. The collaboration of the two makes the establishment of this business increasingly has considerable potential in mastering the market.
Nike’s first name was not Nike as we know it today, but blue ribbon sport. The main goal of establishing this sports shoes business is to present sports shoes products for athletic sports with good quality but still offer a relatively cheaper price compared to shoes on the market.
Initially the athletic shoe market has been controlled by brands from Germany. Although it has a good quality in fact the price is quite high at that time so not many can enjoy the product.
In response to these challenges, Bill imported sports shoes from Japan where he is currently cooperating with Japanese Onitsuke Tiger (Asics) to present quality sports shoes products but at a fairly affordable price for American consumers.
Business Becomes Growing and Increasingly Known to The American Public
The presence of Blue Ribbon Sport is actually able to attract a lot of attention from American consumers. This is because Phil was able to produce experiments by creating innovative products mainly from the anti-mainstream design side.
The high public interest in products issued by Blue Ribbon can be seen from its official retail store that opened in the Pico Boulevard area of Santa Monica California. Interestingly this store is the forerunner of the birth of the Nike brand that we now know.
Blue Ribbon Sport’s business journey grew larger when working with an entrepreneur named Jeff Johnson. The cooperation succeeded in producing sports shoes with the name “Cortez” training shoe. Again this brand reaped success by marked the practice of this product in the American market.
Not stopping there, Phil again developed a product with waffle patterned soles that are ultimately widely applied in modern shoes today. Until now waffle outsole successfully gave birth to several famous series namely Waffle Racer, Air Force One, Air Max 93, Air Max 95 and Air Max 97.
Nike Brand Birth
The birth of the Nike brand is quite unique where Jess as one of the foundrs of Nike had a dream and told it to the two founders of Blue Ribbon Sport. Jeff asked to change the name of Blue Ribbon Sport to Nike and presented a simple logo with the slogan “Just Do It”.
Nike’s big name at the time boomed after producing special shoes used by US Olympic Trials athletes in Eunege, Oregon. The shoes with the name “Moon Shoes” managed to attract a lot of attention from the athletes to the general public. From here Nike has a stepping stone where less than 3 years the Nike brand is able to control 50% of the market share in America.
Not stopping there, Nike also spread its wings by expanding to several countries in Asia and Europe. The expansion was warmly welcomed by customers until finally put Nike into a shoe brand that was quite successful in its time.
Nike Brand Travel in Asia
Nike shoe manufacturing initially failed when made in the United States until eventually Nike made shoes made in Asia where originally made in Japan then moved to South Korea and Taiwan and not long ago Nike products were made in China and Southeast Asia.
Nike’s brand approach across Asia began in South Korea and Taiwan in 1972 due to the cheap labor there and joined the Adidas and Reebok brands. Thanks to the wider market interest, Nike eventually began to go a step further. But instead of owning its own factory Nike was instead contracted by local Korean and Taiwanese manufacturers.
Because of this, Nike eventually moved its production in China in the 1980s by cooperating with state-owned companies. But unfortunately this big step actually brought disaster where Nike then moved its production back to Taiwan because of the cost of labor is much cheaper.
Nike’s journey did not always go smoothly where in the late 1980s there was upheaval by workers in South Korea, resulting in an increase in wage levels and a loss of quality supervision by the Korean government at the time.
The move by the workers led many investors to flee ginseng country. Seeing this, Nike eventually moved production to Southern Thailand and Indonesia to get a cheaper and hassle-free workforce.
By moving its production to Indonesia and Thailand it is said that Nike has slashed most of its production costs paid in South Korea. With the establishment of production in the southeast Asia region it was also followed by the establishment of several associations headquartered in Taiwan in Southeast Asian countries.
Another reason for moving Nike shoe production in 1988 from South Korea to Taiwan was the loss of special access to the U.S. market that had long been enjoyed as a developing country. Which at that time was still under the General Preference System or known as GPS United States. Some investors eventually moved to southeast Asia, mainly Thailand, Indonesia and China.
Of Nike’s three shoe suppliers in 1992, three were Taiwan-based companies that had production in China and the rest operated in South Korea, and Indonesia.
Nike’s Development in Asia
Nike shoe production has been in operation since 1988 where almost one-third of Nike’s total collection is manufactured in Indonesia. Tony Band as the coordinator of Nike Indonesia brand explained at his press conference in November 1994 has had 11 contractors. 11 of them are companies originally associated with Nike South Korea and Taiwan.
The production base also produces other brands such as Reebok, Adidas and Puma. Nike and its contractors based in Indonesia in fact also have a fairly close relationship where each employee conducts quality control over the quality of products in accordance with nike brand standards.
Until now Nike shoe production base is spread in several regions in Indonesia where some of them are located in Tangerang and Serang which is located not too far from Jakarta.
The factories that produce Nike shoes in Indonesia are generally held by Korea. While mid-level managers, to supervisors also come from Korea and Indonesia. While the production part comes from Indonesia mainly female gender with an age range between 16 to 22 years.
Becoming a Premium Brand Through Struggle
Here are some things you need to know about the Nike brand whose products are now sought after by people around the world. Until now Nike shoes are included in several ranges of shoes with premium quality that are also widely used by athletes around the world.