Strong Global Brand: Nike is the most valuable sports brand in the world. Its “Swoosh” logo is instantly recognizable around the globe. Its long partnership with legendary basketball player Michael Jordan has driven strong sales of the company’s basketball sneakers, including the retro business, which makes up about half of the Jordan shoe business. In fact, one of every two basketball shoes in the U.S. last year carried that Jordan brand. Nike’s ability to maintain and enhance its iconic brands has allowed it to enjoy continued success for decades.
Low Cost Manufacturing: Virtually all of Nike’s footwear is manufactured outside of the United States by independent contract manufacturers who operate multiple factories. In fiscal 2014, Vietnam, China, and Indonesia manufactured roughly 43%, 28%, and 25% of total Nike Branded footwear. It also has operations in Argentina, Brazil, India, and Mexico. The low cost of producing products in these countries continues to boost the bottom line.