What does the Nike sign mean? Just Do It: The History of Nike

Gross profit

Net profit

Asset value

Equity

Number of employees

Total shareholders equity

Interbrand, $ billion

Millward Brown Optimor, $ billion

Brand Finance, $ billion

Since 1993, exclusive distributor of Nike on Russian market There was a company called Delta-Sport, but since 2004 Nike decided to abandon its services and conquer the market on its own. In Russia, the company is represented by Nike LLC, which supplies Nike products for sale through retail chains partner companies (the largest of them is Sportmaster).

history of the company

The company was originally founded in 1965 by student Phil Knight, a middle-distance runner for the University of Oregon, and his coach Bill Bowerman. Then it was called Blue Ribbon Sports and specialized in ordering sneakers in Asian countries and then selling them on the American market. Having invested $500 in the business, they purchase 300 pairs of sneakers from the famous Japanese company Onitsuka Tiger. The company's first self-developed product was a sneaker based on a waffle-shaped sole design that Bowerman had learned from a waffle iron.

Bill Bowerman (William Jay Bowerman)

Phil Knight

IN In 1966, the company opened its first retail store. In 1971, the Nike trademark first appeared - football boots were released under this name. In 1978, Blue Ribbon Sports was officially renamed Nike, Inc.

The name comes from the ancient Greek spirit of victory Nicky, not from English word, which would read "Nike". Ignorance this fact led to widespread incorrect transcription of “Nike” in the Russian-speaking environment, which was even used in the name official representative companies in Russia.

On October 23, 2007, the company bought the Umbro brand, a manufacturer of sportswear and footwear, for $580 million.

$44 million is what Nike reportedly paid the Indian cricket team in 2009 under a five-year sponsorship contract. Nike puts 13,000 models of shoes and clothing on sale every quarter.

In 2010 Nike signed an 8-year sponsorship contract with Maria Sharapova for $70 million.

Brand history

History of Nike is inextricably linked with the name of Phil Knight. The author of the Nike myth is Phil Knight. He was a mediocre middle-distance runner at the University of Oregon, and over the years, with a net worth of more than $3.8 billion, he became the sixth richest American. Metamorphosis Explained is a business he started with his athletic trainer Bill Bowerman in 1964.

American-made sports shoes then cost only 5 USD, but their quality left much to be desired. Many athletes returned from the tracks with bloody calluses on their feet. German shoes were of much higher quality, but they cost six times more - 30 USD.

Knight-Bowerman's idea was simple: high-quality shoes could be designed in the USA, manufactured in Asia and sold in America for more low prices than the popular West German sneakers. While earning an MBA from Stanford in the 1960s, Knight took classes in Frank Shallenberger's class. The task at the next seminar was a business development strategy for a small private company, including a marketing plan. According to Nike legend, it was at this marketing seminar that Knight came up with the concept for the company.

Japan was chosen as the Asian manufacturer because labor there was much cheaper than in America. In 1963, Knight traveled to Japan. In the Land of the Rising Sun, he entered into an agreement with the Onitsuka factory to sell high-quality Japanese Tigers sneakers in the United States. Returning to America, the 26-year-old businessman began selling Japanese shoes out of the back of his truck near the treadmills. Their project, the progenitor of Nike, was called Blue Ribbon Sports. The company's name was born during negotiations with the Japanese, where Knight represented himself on behalf of a defunct American sneaker distributor, Blue Ribbon Sports, interested in selling Japanese shoes in the United States.

By 1964, Knight had sold $8,000 worth of sneakers and sent an order for a new batch. Bowerman and Knight worked as a team, but they soon hired sales manager Jeff Johnson.

In 1965, Bowerman and Knight changed the name of their company, naming it after greek goddess Nicky's victory. The new name of the company - Nike, according to legend, was invented by Jeff Johnson, who saw the winged goddess of victory Nike in a dream.

In 1971, Portland University design student Caroline Davidson designed a logo for an unknown company for a modest fee of $35. Twelve years later, in 1983, Phil Knight invited her to a restaurant and presented her with a gold ring, in addition to the emblem invented by Caroline, decorated with a diamond, and also added to his gift an envelope with a certain amount of company shares. This was a fair reward for the sign, the mere presence of which on sports shoes increases their consumer appeal several times. This logo, familiar to everyone today and symbolizing the wing of the goddess, was called SWOOSH, which can very roughly be translated into Russian as “flying with a whistle.”

Fitness revolution and jogging fashion of the early 70s. stimulated rapid business development. By 1969, Knight had already sold $1 million worth of sneakers. But the company's net income was small.

In 1975, Bill Bowerman came up with an idea that would become a turning point in the history of Nike. At breakfast, looking at his wife's waffle iron, he decided that if he made the sole of his sneakers grooved, this would, on the one hand, improve the push, and on the other, reduce the weight of the shoe. Soon he fitted the “waffle” sole to sports slippers and invited track and field athletes to try it out. This ingenious invention instantly made Nike an industry leader with a market share of 50% (1979). And after Adidas was left behind in 1980, Nike had only one competitor left - Reebok. Until Michael Jordan came along.

In 1988, a campaign featuring baseball star Bo Jackson debuted. Three videos showed Jackson running, biking and playing basketball. The videos ended with the phrase: “Bo knows.” The next clip played on the coincidence of the names of Bo Jackson and Bo Diddley, a famous musician. The headline of the message was that "Bo doesn't know Diddley."

However, the company did not have to enjoy the laurels of the winner for long. In 1998, Nike's popularity was falling, as it simply became unfashionable to wear what thousands of people around them were wearing. But this was not a surprise for Nike, which was fully armed. In 1998, Knight introduced a new line of products - ACG - "all-weather accessories." In addition, Nike restructured part of its business into separate groups: Nike Golf, Jordan Brand, Nike Hockey, Nike ACG, etc. appeared.

In 1999, Nike copes with troubles. The Internet is being successfully mastered. The company acquires a considerable number of web addresses.

In January 2000, a 30-second video appeared on television featuring track and field sprinter Marion Jones running through the streets to escape a maniac with a chainsaw. The video ends abruptly, sending viewers to whatever.nike.com for the rest of the story. On the electronic page, visitors were given a unique opportunity to watch a television clip in Apple QuickTime and come up with its ending themselves. The best options were broadcast there, on the Internet.

In May 2018, Nation News reported that Nike had developed a conveyor belt that pulls the foot into the shoe.

As noted in Nike's patent application, a small motorized conveyor belt is built into the insole or sole of the shoe. As soon as a person places the forefoot into the shoe, it automatically starts and pulls the foot into the shoe.

The source of energy for the shoe conveyor was a battery that can be charged not only from the mains, but also while running in these shoes due to the piezoelectric effect.

On this moment Nike has not officially announced plans to create such sneakers, so far only a patent application is known.

In December 2017, a sports hijab went on sale - an element of clothing released by Nike that has no analogues.

Jeff Johnson, who was tasked with coming up with a name for the new company within 24 hours, dreamed of the ancient Greek goddess Nike. This is how the name Nike was born.

Knight's first investment in his company was $500. And Phil’s first counter was the trunk of his car.

Knight himself accidentally came up with the slogan for his company. He hung up the phone after listening to a version he didn't like and said "Just do it!"

Bill Bowerman put a rubber strip into a waffle iron to make fun of his wife. The waffle sole was the company's first stand-alone product, and to this day it is considered the most the best option for sports shoes.

Michael Jordan's sneakers, which collaborated with the company, were black and red, but such colors were banned in the NBA. He was fined one thousand dollars for each game in them, but Jordan continued to play in Nike shoes. The scandal with the basketball player's sneakers was good for the company.

In 2008, the Russian Central Election Commission agreed with Nike on the main logo of the presidential company Russian Federation, which was very similar to the legendary “tick”.

The name comes from the name of the Greek goddess of victory, Nike, and not from the English word, which would read "nike". Ignorance of this fact led to the widespread spread in the Russian-speaking environment of the incorrect transcription of “Nike”, which was even used in the name of the company’s official representative in Russia.

Nike has been criticized for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico. The activist group Vietnam Labor Watch has documented that factories with which Nike worked were violating Vietnam's minimum wage and overtime laws as early as late 1996, although Nike says it has abandoned such practices.

Today we offer a look at the history of perhaps the most famous and beloved sports brand in the world - Nike. We're all familiar with the Nike swoosh, endorsed by countless superstars such as Michael Jordan, LeBron James, Andre Agassi, Maria Sharapova, Venus and Serena Williams, the list goes on and on. The famous “swoosh”, so well known and loved nowadays, had a rather weak start as a logo, and as in any great history, has gone from humble beginnings to an incredible future.

In 1971, Phil Knight, founder of Blue Ribbon Sports, hired Portland State University design student Carolyn Davidson to design a logo for the shoe. Davidson presented Knight with several design options, and although Knight didn't think the swoosh logo was a stunning option, he chose the symbol and decided that "a lot of people might like it more and more over time." Davidson invoiced the work for $35, but years later, after the Nike logo had become famous around the world, Knight sent the designer a diamond swoosh ring and an envelope of Nike stock to express his gratitude.

Knight wanted Nike's logo design to be an emblem that was simultaneously simple, dynamic and flexible. These words characterize the Nike logo, which has successfully grown into one of the most influential and recognizable symbols in the entire world. Nike swoosh represents a wing famous statue the Greek goddess of victory Nike, who was a source of inspiration for many great and brave warriors. The brand was originally introduced as a “ribbon”, but later it was called the “swoosh” (the sound of air being cut), as this name accurately symbolizes the material from which Nike makes sports shoes.

In the spring of 1972, the first Nike shoes with a swoosh logo appeared on the market, and a few years later, in 1995, the logo was registered as a trademark of the company and became its corporate identity. The image used today comes nine years after the original logo was designed. Since then, the sign has been slightly changed - the check mark has been slightly tilted, blurred and painted black.

The abstract wing is a significant symbol for a company involved in the creation of sports equipment and footwear. The logo has a singular mission: “to bring inspiration and innovation to every athlete in the world.” The slogan: “Just do it” and the swoosh logo have become a way of life for many generations. The story of the Nike identity is an amazing example of how a small symbol with a simple but powerful design can propel a brand to success and turn a company into a global star.

The history of the Nike brand will be of interest to all running enthusiasts.

Since about the 70s of the last century, young athletes often faced a difficult choice when buying running shoes: which company to choose when buying running pairs. American "Nika" has always been among the popular brands. Starting with running shoes and spikes, the brand now accounts for 95% of the basketball shoe supply in the United States. More than 74 thousand employees work under his name in various parts of the world. The brand value is estimated at the most minimal estimates at $27 billion, which is the highest price among brands in the sports industry.

Let's find out how the history of Nike began, who created it and other details of the legendary brand.

How Nike was born

The history of the Nike company dates back to the 60s. At that time, Adidas reigned in the American sports shoe market. Sneakers from local manufacturers, although they were cheaper, did not suit athletes (especially mass amateurs) with their quality. The legs got very tired in them, they practically did not soften the impact on the road surface, and did not protect against injury.

University of Oregon running coach Bill Bowerman and his student Phil Knight decided to change that. Having entered into an agreement with the Japanese Onitsuka Tiger, whose sneakers were then not much inferior to Adidas' ones, but were several times cheaper, they began selling them along the entire coast of the country. The date of birth of the Blue Ribbon Sports company they founded was 1964.

Bill Bowerman works with the sole

At first, trade was carried out from Knight's van, but only in the late 60s did entrepreneurs open the first sports store, and then begin to create a network of partner outlets in different states of the country. At the end of 1970, they sold goods worth 1 million. $.

Phil Knight

Independent production

The Japanese partner, having learned about the successful promotion of its products in America, decided to independently develop the American market and, on its own terms, offered to buy out BRS.

Under the threat of losing his business, Knight was able to quickly reorient himself and find a new supplier in Japan - the company Nisho Awai. At the same time, the founders of the future brand decide to start their own production. Their accumulated experience told them that they could only conquer their niche in the market by releasing products that would stand out among their competitors.

The history of Nike’s creation includes many events that influenced its further development.

Once, looking at the waffle iron standing on the table in front of him, Baurman thought that such a corrugated sole could increase the support push and at the same time make the shoes lighter. The idea was soon put into practice, and sneakers with waffle-shaped soles became the most popular model in the country, and its grooved surface became a notable feature of the brand.

Bowman's wife's waffle iron

By that time, entrepreneurs began to call their products “Nika”, and in 1978 Nike, Inc. was officially registered.

The first sneaker with a waffle sole

Sports and Nike are inseparable

As people involved in sports, Knight and Bowman, from the inception of Nike and throughout its history, have focused on the sale and manufacture of sports shoes. Understanding well how important the example of champions and famous athletes is for general public, entrepreneurs fulfilled individual orders for them and actively involved them in advertising their products.

The first famous athlete to actively use Niki's models was coach Bowman's student, member of the US running team, Steve Prefontaine. After him, world number one title holder Ilie Nastase, US Open-74 champion Jimmy Connors, and world marathon record holder Kenyan Henry Rono competed in the company's shoes.

Steve Prefontaine

At the 1976 Olympics, most athletes wore Nike models.

The history of the company's development is not limited only to the manufacture of branded shoes. 1979 was marked by the release of the first samples of sportswear, designed by Knight himself and his wife.

Sales expansion

Since 1975, Nike began to organize the sale of products abroad. The first country in which sneakers began to be sold en masse was Canada. Successful advertising on the sports front, an active policy to capture the market, and the increased popularity of recreational running largely contributed to the rapid growth of sales to $25 million in 1977.

Air insoles

The company's success story would be unthinkable without the appearance of NASA employee Frank Rudy within its walls. He proposed the depreciation technology he had developed. Air cushions filled with compressed gas were built into the back of the sole. His proposal was not immediately accepted, but it turned out to be revolutionary and brought the company worldwide fame and millions in profits.

Frank Rudy

A sneaker model with an air-cushioned sole called the Nike Tailwind began selling in 1979. The company called the new technology AirMax. It is used by the corporation in a popular line of products in the most varied and numerous variations.

Reorganization into a joint stock company

By 1980, Nike had already captured half of the American sports shoe market. The company is ripe to enter a new, more high level development. Ahead was a struggle for leadership with the main competitors - the world-famous brands Adidas and Reebok.

There was a need for a public offering of shares, which would strengthen the company’s reputation and make the brand even more significant and recognizable. In addition, the organization needed large loans, and banks were more willing to issue them against securities that are quoted on the stock exchange.

Nike reorganizes into an open joint stock company and conducts an IPO. The company had 2,700 employees at that time. The Nike story ran on new stage development.

Advertising strategy

Once in an interview, Phil Knight said that marketing is what all divisions of the corporation basically do. Product design and functionality are only part of the global marketing process. He identified three pillars on which the success of the organization rested:

1. use of famous athletes in advertising;
2. product design;
3. the advertisement itself.

Knight's advertising strategy throughout Nike's history has been based on the use of iconic athletes. The most important milestone was the signing in 1984 of a long-term contract with the best NBA basketball player, Michael Jordan. Having invested millions in advertising with his participation, the Nike corporation managed to make the superstar the face of its shoe empire.

AirJordan sneakers were made for him, functionally suited to his style of play. They became extremely popular in America. The teenagers were ready to give everything for the same sneakers as “his airhead.” At the same time, all Nike products became more popular. The company's annual turnover during its cooperation with the “king of the air” increased 4.5 times to $4 billion.

Nike Air Jordan 1 White

In 1988, the now classic advertising campaign Nike under the slogan “Just do it” (Just do it). In the future, “JustDoIt” will actually become the second name of the brand and will take its place in history as one of the best slogans. The costs of promoting the slogan by 1989 will reach $45 million. Along with Jordan, tennis star Andre Agassi and baseball player Bo Jackson were involved in the collaboration.

Further promotion of the brand

Since 1990, the company began creating a network of its own retail stores Nike Town. The first company store was opened in Portland. Its design soon made the establishment a place of pilgrimage for tourists in the city. Now a network of such stores operates throughout the world.

In 1991, Nike's sales in America reached the level of its main competitor, Reebok. The brand was promoted quite successfully in Europe, where revenue amounted to $1 billion.

Nike positions itself as a global corporation in the world of sports. In the 90s, she continued to expand her product line. NikeGolf, NikePro, Nike+, AirJordan, NikeSkateboarding series, subsidiary brands ColeHaan, Hurley International and Converse appear.

ColeHaan series shoes

Nike in Russia

Nike has been present on the Russian market since 1993. The promotion of the product on Russian soil is carried out by the subsidiary company Nike LLC. In total, there are more than 100 stores throughout the country selling exclusively products of this brand.

Where did the brand name come from?

The original name of the brand comes from the name Nick and is borrowed from ancient greek mythology. This was the name of the winged goddess of victory.

The official history of the Nike brand states that the name was proposed by the first employee of the company, Jeff Johnson. The founders couldn't agree on a name, so Jeff was called in to help. The name of the product had to be printed on the boxes in the morning. By morning, Johnson had a name for the new brand.

Jeff Johnson

Birth of a logo

The history of the logo is very prosaic. The legendary swoosh (“swoosh” or “flying with a whistle”) was invented and designed by Portland University student and future advertiser Caroline Davidson. Fate brought them together with Knight during classes in accounting which he taught as a teacher. She worked as a freelancer and Phil asked her to come up with an emblem that he could put on the side of his sneakers. The businessman paid her $35 for the work.

The evolution of the Nike logo

The image resembles the silhouette of the wing of the goddess Nike and has always been associated by the creators with positive thinking, a healthy and energetic lifestyle, and a symbol of leadership in the sports industry.

In 1983, already as the head of Nike, Mr. Knight gave Davidson a figurine of a goddess with diamonds, as well as a stake in the corporation.

Nike today and tomorrow

These days, the American corporation Nike Inc. is one of the leaders in the international market of sports shoes, clothing and accessories.

The Nike brand is known to millions of people around the world, and is considered by many to be a global symbol of sports. The company became famous for its unexpected and original innovative proposals.

She was the first to create a social network on the Internet entirely dedicated to basketball. A unique opportunity has been created for fans to design their own sneakers on the company website. You can order your original model from the manufacturer directly on the website.

The AirMax line continues to be improved. Another model that captures the imagination of fans of the brand is HyperAdapt - self-lacing sneakers.

Nike HyperAdapt 1.0 'Sport Royal'

The Nike+ system has been implemented, allowing runners to monitor their runs using a sensor built into the sneakers. It was the fruit of cooperation with the IT industry giant Apple.

Model Nike+

Financial indicators

Behind last years The corporation's financial performance is constantly growing. The main parameter - revenue - over 5 years grew by 35.9% and amounted to $34.4 billion at the end of the 2017 financial year (as of May 31, 2017).

Sales in Europe, including Russia, as well as the Middle East and Africa, increased by 10% and reached $4.05 billion. With each report, the brand value increases, assessed by experts of various portals. Thus, according to Interbrand, over the past five years it has risen in price by 35.9%.

Management

Bowerman gradually retired in the 70s, selling his shares piecemeal to various employees of the firm. He died in 1999.

Phil Knight ceased to be president of the corporation in 2004, remaining the head of the board of directors. In 2016, he left this post as well.

In June of the same year, the board of directors was headed by Mark Parker, who is both president and CEO of Nike. The success of the organization in the last five years is largely associated with his name.

Mark Parker

The corporation's main office is located in Beaverton, Oregon. Now the complex consists of 7 modern buildings, each of which is named after legendary athletes.

Nike's largest headquarters building

Nike Incorporation's mission is to encourage as many people as possible to play sports and to make these activities fun for every athlete. In the field of sports and fitness, the company should be number one in the world.