Nike History

Nike, Inc. is an American multinational corporation known for its athletic footwear, apparel, and
equipment. Its history dates back to 1964 when it was founded as Blue Ribbon Sports (BRS) by
Phil Knight, a track athlete from the University of Oregon, and his coach, Bill Bowerman. Initially,
BRS operated as a distributor for the Japanese shoe brand Onitsuka Tiger (now ASICS), selling
shoes out of Knight’s car at track meets.

Key Milestones in Nike’s History

• 1971: The relationship with Onitsuka Tiger ended, and BRS decided to create its own
line of footwear. The company rebranded as “Nike,” named after the Greek goddess of victory.
The now-iconic Swoosh logo was designed by a student, Carolyn Davidson, for just $35.
• 1972: Nike introduced its first line of shoes with the Swoosh logo. Bowerman innovated
by using a waffle iron to create a new sole design, resulting in the “Waffle Trainer,” which became
a popular model among athletes.
• 1978: Blue Ribbon Sports officially changed its name to Nike, Inc. and began focusing
on aggressive marketing, branding, and product development.
• 1980: Nike went public, and by the end of the year, it had gained a 50% market share in
the U.S. athletic shoe market. This marked the beginning of its dominance in the industry.
• 1984: Nike signed Michael Jordan, then a rookie basketball player, to an endorsement
deal. The partnership led to the creation of the Air Jordan line, which became a global
phenomenon and one of the most successful sneaker lines in history.
• 1987: The introduction of Nike Air technology in the Air Max line, with visible air
cushioning in the sole, became one of Nike’s most iconic designs.
• 1990s: Nike expanded into apparel and equipment, securing a leading position in sports
culture and signing major endorsement deals with athletes like Tiger Woods, LeBron James, and
Serena Williams.
• 2000s: The brand continued to innovate with products like Nike Free and the launch of
the Nike+ technology in partnership with Apple, allowing runners to track their performance
using digital tools.
• 2010s: Nike increased its focus on sustainability, unveiling products made from recycled
materials and promoting eco-friendly practices. The brand also leveraged digitalization, launching
the SNKRS app and focusing on direct-to-consumer sales.
• 2020s: Nike has invested in digital experiences, like the Nike Training Club app and Nike
Run Club app, and has expanded its reach into the metaverse with virtual products and
partnerships.

Today, Nike is the world’s largest supplier of athletic shoes and apparel, with a strong presence
globally and a reputation for both innovation and cultural influence.

Nike in India

Nike entered the Indian market in the mid-1990s as India began liberalizing its economy, opening
up new opportunities for global brands. Initially, Nike established itself through partnerships with
local distributors, introducing its international brand and products to Indian consumers who were
rapidly becoming more interested in global brands and athletic culture.

Key Milestones of Nike in India

• 1996: Nike launched in India primarily through distributors, focusing on premium sports
shoes, apparel, and equipment aimed at urban, affluent consumers. During this time, Nike
capitalized on India’s growing sports culture, especially with a rising interest in sports like cricket.
• 2004: Nike officially registered its subsidiary, Nike India Pvt. Ltd., making a stronger
push into the Indian market. This allowed Nike to expand its retail presence, open flagship stores,
and establish relationships with local manufacturers.
• 2005: Nike became the official sponsor of the Indian cricket team, marking a significant
milestone in brand recognition across the country. Cricket being India’s most popular sport, this
sponsorship helped Nike build brand loyalty and become closely associated with Indian sports
culture.
• 2006-2010: Nike continued expanding its reach in India, opening exclusive Nike stores
in major cities such as Delhi, Mumbai, and Bangalore. The brand also collaborated with Indian
athletes and teams, and launched various cricket-centric campaigns. This period saw the release
of Indian-specific apparel collections, including cricket jerseys and footwear.
• 2011: The “Bleed Blue” campaign, launched during the ICC Cricket World Cup, became
a memorable moment for Nike in India. The campaign celebrated the Indian cricket team and
resonated with the patriotic spirit of the Indian audience, as India won the World Cup that year.
This boosted Nike’s brand visibility and emotional connection with fans.
• 2015-2019: Nike focused on expanding its footprint through e-commerce as online
shopping gained traction in India. Partnering with platforms like Amazon, Flipkart, and Myntra,
Nike aimed to make its products more accessible across various regions.
• 2020s: Nike shifted its strategy in India to prioritize digital and direct-to-consumer sales
channels, focusing on its app, website, and key e-commerce partnerships. While Nike closed
some of its physical stores, it emphasized strengthening its online presence to meet changing
consumer behaviors.

Despite some challenges, such as increased competition from brands like Adidas, Puma, and local
brands, Nike has retained a strong foothold in India’s premium sportswear segment. Its
association with cricket, partnerships with athletes, and innovative digital strategies have helped
it maintain brand relevance and loyalty among Indian consumers.

Nike and international business

Nike’s approach to international business has been one of aggressive expansion, strategic
partnerships, local market adaptation, and consistent branding. Its journey to becoming a global
leader in sportswear is rooted in understanding local cultures, adapting to market needs, and
leveraging innovative marketing and technology. Here’s an overview of Nike’s international
business strategies:
1. Early International Expansion

Nike initially expanded internationally in the 1970s and 1980s by entering key markets in Europe,
Asia, and Latin America. The brand recognized early on that Europe was a lucrative market due to
its long-standing sports culture. By 1981, Nike had opened European headquarters in the
Netherlands and gradually expanded its distribution network across the continent.

2. Outsourcing Manufacturing

Nike outsourced manufacturing to countries with lower labor costs, primarily in Asia. This move
helped reduce production costs and enabled the brand to price products competitively,
supporting its growth and profitability. Countries like China, Vietnam, Indonesia, and Thailand
became central to Nike’s production, and by the late 1980s, the brand manufactured nearly all of
its products outside the U.S.

3. Localized Marketing and Branding

Nike’s branding is universal, with the “Just Do It” slogan and Swoosh logo recognized worldwide.
However, Nike customizes its advertising and messaging to resonate with local audiences. For
example:
• In China, Nike has promoted sports that resonate with Chinese youth, like basketball,
and created campaigns that celebrate local sports culture.
• In India, Nike has associated itself with cricket, launching campaigns and creating
products specifically designed for the sport.
• In Japan, the brand has focused on high-quality, minimalist designs to appeal to
Japanese fashion aesthetics.

4. Strategic Sponsorships and Endorsements

Nike’s sponsorships and endorsements have played a key role in its global influence. By signing
top athletes and teams around the world, like Michael Jordan, Cristiano Ronaldo, Serena
Williams, and global soccer clubs, Nike established itself as a leading brand in various sports. This
strategy also builds brand loyalty, as fans often align with athletes they admire.

In many countries, Nike sponsors local teams and leagues, helping the brand connect with
national pride and sports culture, which in turn drives consumer engagement.

5. Adaptation to Local Preferences

Nike tailors its product offerings to meet the tastes and needs of different regions. For example:
• In India and Brazil, Nike produces cricket and soccer apparel due to the popularity of
these sports.
• In China, Nike offers smaller-sized shoes and clothing, and designs that are appealing to
local fashion tastes.
• In Europe, Nike focuses on soccer apparel, and in the U.S., it emphasizes basketball and
American football.

This adaptation ensures that Nike stays relevant across diverse markets.

6. Investing in Emerging Markets

Nike has aggressively invested in emerging markets, seeing them as key growth areas. Markets
like China, India, Brazil, and Southeast Asia have seen major investments in marketing,
distribution, and retail. In China, Nike has been particularly successful and has become one of the
top sports brands by aligning with the government’s push to promote health and fitness.

7. Digital Strategy and E-commerce

In the 2020s, Nike focused on digital transformation, particularly through direct-to-consumer

sales channels. Nike’s apps (Nike App, SNKRS, Nike Training Club) and online stores have enabled
it to reach consumers directly, supporting personalization and loyalty. In markets where physical
stores are limited, Nike has built robust partnerships with local e-commerce platforms like Tmall
in China and Flipkart in India.

8. Sustainability and Social Responsibility

In recent years, Nike has emphasized sustainability as part of its international business strategy,
responding to global consumer demand for environmentally responsible products. Initiatives like
Nike’s Move to Zero aim to reduce the brand’s carbon footprint and water usage. This
commitment to sustainability is promoted globally and aligns with local sustainability
movements, especially in markets where environmental issues are a top concern, like in Europe.

9. Navigating Cultural and Regulatory Challenges

Operating in diverse countries requires Nike to navigate cultural sensitivities and varying
regulations. The company has faced scrutiny for its labor practices in Asia and adapted by setting
higher standards and increasing transparency within its supply chain. Additionally, Nike has had
to adapt to local regulatory requirements, like data protection laws in Europe and new trade
regulations in the U.S. and China.

Summary

Nike’s international business success lies in its ability to combine a global brand image with local
market understanding. Through tailored marketing, local adaptations, digital innovation,
sustainability, and strategic partnerships, Nike has built a strong global presence and remains one
of the most recognized and influential brands worldwide.