What is Nike’s net worth?
|Net Worth:||$34.8 Billion|
|Earnings:||$34.7 Billion (2020)|
|Founded:||January 25, 1964|
|Founders:||Phil Knight and Bill Bowerman|
Nike is a multinational company founded in America specializing in the design, production, and sales of sports equipment, jersey, cleats, and accessories.
A Fortune 500 company, Nike ranks as one of the most successful brands globally, with its products found in every continent around the world.
Since its inception in January 1964, Nike has risen to become a dominant market player in sports. Its “Just do it” mantra, one of the most recognizable copyright terms, exclusive to the brand, which has resonated throughout the annals of sports history, right from 1988 to this day, has helped its philosophy fit soundly into the minds of fans.
Thanks to the plethora of endorsement deals, the company has with top stars, and creatively designed advertisement campaigns, Nike has enjoyed significant success.
In 2014, Nike was valued at $19 billion, which increased by about $10 billion in 3 years to $29.6 billion in 2017. Nike also recorded $36.39 billion in revenue in 2018. These massive figures solidly establish that the multinational sports company is indeed a ferocious and gallant stakeholder in sport.
With an emphasis on Nike’s brand value, we’ll review its establishment, growth, achievements, and earnings.
Nike Brand Establishment
On January 25, 1964, the late University of Oregon track and field coach, William Jay “Bill” Bowerman and then University of Oregon track and field athlete Phil Knight, founded Blue Ribbon Sports (BRS) at Eugene, Oregon. BRS started not as a shoe manufacturer, but rather as a distributor for one of Japan’s oldest shoe-making companies, Onitsuka Tiger.
The duo sold the shoes out of the trunk of Phil Knight’s automobile. After ending its partnership with Onitsuka Tiger in 1971, BRS changed its name to Nike, Inc on May 30, 1971. Nike is named after the Greek god of victory. Thus, the company emerged victorious, as incorporating the “Swoosh” logo and the 1988 “Just Do it” campaign helped the brand become a significant player in athletics shoes in the US.
Nike Brand Growth
In the first year of Business, BRS sold 1,300 shoes, earning $8,000. BRS went on to generate about $20,000 from sales in the following years. In 1966, BRS first store opened. In Santa Monica, California, the company’s first store on 3107 Pico Boulevard was a litmus test in retail shoe selling. Increased sales led the brand to expand its reach to Wellesley, Massachusetts.
By 1971, BRS ended its partnership with Onitsuka Tiger and began the manufacture of its shoes. BRS seeking to rebrand, changed its name to Nike, Inc, in May 1971. That year, the famous Nike Swoosh logo was designed by graphics designer, Carolyn Davidson. The logo was first used in June 1971, and registered with the US Patent and Trademark Office, in January the following year.
1960 Summer Olympics Gold medalist, Otis Davis, claimed that Bill Bowerman made the first Nike shoe, for him. Seeking to extend its reach nationwide, Nike hired John Brown and Partners to lead its advertisement campaign. The ad agency came up with the mantra, “There is no finish line.”
Nike experienced rapid success by 1980; the company had a 50% share in the US athletic shoe market and, thus, had its IPO in 1980. It switched advertising agency to the famous Wieden+Kennedy, in the 1980s. The company’s co-founder, Dan Wieden, is the brain behind the first-ever Nike “Just Do it” advert, which premiered in 1988, and became viral in mainstream media.
The success Nike experience in the 1980s led it to spread its tentacles to other sports and sales to other countries. Over the years, Nike has been involved in the acquisition of promising sports manufacturing companies, such as it’s 2004 acquisition of sneakers company, Converse for US$309 million.
It has had various leadership and policy changes over the years. Notable of such is the company’s decision to stop the sales of its product via Amazon in 2019. One factor that has helped Nike develop into a very successful Athletics brand is the creative use of endorsements from stars. The first-ever athlete endorser for the brand, was Steve Prefontaine, a student of co-founder Bill Bowerman.
Nike particularly benefited from its athletes’ endorser in 1984 when they signed NBA star Michael Jordan, who endorsed the brand’s shoe throughout his career. The endorsement had massive success as the Nike Jordan shoe brand has generated over $1 billion in sales. The company spends hugely on endorsements and receives corresponding significant returns. That is evidenced by a CNN report in 2018, which states that Nike spent $11.5 billion on endorsements and marketing.
Nike’s achievements are endless because it has remained a top player in the athletics manufacturing industry for decades. Highlighted below are a couple of Nike’s accomplishments.
- Number 1 manufacturer of athletics apparel and shoes.
- Most valuable sports brand as of 2019
- 91st Fortune 500 Company 2019
- Boasts of 73,000 labor force
- Processes and recycles old athletics shoes through its Nike’s Reuse-A-Shoe program launched in 1993
- Manufacture of jerseys for the NBA and select national football teams across the US and the world.
- Sponsors the most lucrative lifetime endorsement deals in sports.
- Most popular sports shoe brand in the US.
Nike Net Worth in 2020
As of 2020, Nike’s net worth is valued at about $34.8 billion. Its 2020 global brand value is a $2 billion increase from its worth in 2019.
The ubiquitous sports company recorded its most profit from footwear sales in 2020. Footwear sales accounted for $24 billion of its 2020 revenue. Non-US sales accounted for about 59% of Nike’s sales as of 2019, a 1% increase from sales in 2018, despite the heavy focus on the US market.
Nike spent $3.75 billion in marketing and advertising in 2019 alone to improve visibility and reach.
Nike Brand Value from 2016–2020
|Year||Brand Value (in US dollars)|
Nike’s earnings between May 2019 and May 2020 is estimated at a total of $37.4 billion. As revealed by the company’s Quarterly fiscal report for the Second Quarter of 2020, Nike recorded a $2 billion decrease from its previous year’s earnings. Between May 31, 2018, and May 31, 2019, Nike generated $39.2 billion in revenue, more than $3 billion increase from the previous 365 days earnings.
People also ask
How did Nike get its name?
Blue Ribbon Sports (BRS) was founded on January 25, 1964, by William Jay “Bill” Bowerman and Phil Knight. On May 30, 1971, BRS changed its name to Nike, Inc. The sports brand’s name Nike is taken from the Greek god of victory.
What is Nike famous for?
Nike is a footwear manufacturing company famous for its footwear, apparel, and athletics brand. Nike is also recognized by it’s very popular “Swoosh” logo and its “Just do it” slogan.
Who is Nike’s biggest competitor?
Nike’s most significant competitors include Adidas, Reebok, New Balance, Under Armour, FILA, Skechers, ASICS, Puma, Allbirds, Steve Madden, and Rothy’s.
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