Liu Liu
The Athens Olympic Games, which closed not long ago, is also a grand event to show its strength for Nike, the world's first sporting goods company. Nike has produced a series of sports shoes suitable for high-speed running and sponsored athletes all over the world. Nike sponsored athletes won only 50 gold medals, including the men's 1500m champion Queiroy of Morocco and the top four men's 100m athletes.
Nike's momentum is not only reflected on the runway. In the fiscal year of 2004 ending May 3 1, Nike's profit was nearly 1 billion US dollars, an increase of 27% over the previous year. Sales revenue was $654.38+0.23 billion, an increase of 654.38+05% over the previous year. The company's stock also rose to $78 per share, up 37% from last year, while the average increase of the Standard & Poor's 500 Index was only 9%.
Create Nike
From 65438 to 0958, Philip Knight, founder and CEO of Nike, studied at the University of Oregon. He is also a member of the school track and field team, and deeply feels that the United States has never produced a really good pair of sports shoes. "At that time, American shoes were made by tire factories. They are five dollars each. After running five miles, their feet will bleed. " He said: "German shoes are more comfortable, but a pair costs 30 dollars."
Bill Ballman, the school's track and field coach, is also dissatisfied with the quality of German sports shoes. Although his shoes are ugly in appearance, they are light and comfortable, which makes the athletes run better. 1964, Knight and Ballman each invested US$ 500 to set up the Blue Ribbon Sports Shoes Company, which was designed and distributed by the US and made in Japan.
Because the initial sales income was too low, Knight worked as an accountant until 197 1. 1972, the blue ribbon was renamed Nike, which means "victory" in Greek. 1975, in order to reduce the production cost, Nike moved the Japanese production line to South Korea and Taiwan Province Province of China, where the labor cost was lower, and then expanded to Indonesia and Chinese mainland.
The development of fitness in 1970s also promoted the rapid development of Nike. Adidas, the largest shoemaker in the United States, once disdained Nike, but in the 1980s, Adidas was bashed head-on by Nike, which reflected its rebellious will and gradually lost its dominant position in the sports shoes market.
Innovation+celebrity marketing
So far, no company has achieved the ultimate in celebrity marketing like Nike.
Knight believes that using top athletes as spokespersons can expand the breadth and depth of brand contact with consumers. Now, Nike spends $200 million a year on famous athletes, such as basketball player Michael Jordan and tennis player Andre Agassi.
1985, Nike hired NBA superstar Michael Jordan as its spokesperson for millions of dollars. In Jordan's heyday, Nike occupied an absolute dominant position in the basketball team market. Phil knight and Nike turned me into a dream. Jordan once lamented.
1996 following Jordan's sponsorship, Nike signed golf superstar Tiger Woods for about $65,438 billion in five years, which is the most expensive advertising contract in sports history. In order to persuade Woods to join us, Knight played with him on the golf course like a shadow. From June 5438 to October 2000 10, Nike re-signed a five-year contract with Woods.
Of course, it is not enough to just use celebrities to create momentum. Reebok, founded by Paul Filmon in 198 1, surpassed Nike's $597 million and 18% with sales of $99 1 10,000 and 30% market share of sports shoes. In this hegemony, the fashion sense of Reebok products and the concern for female consumers have played a decisive role.
Since then, Nike has also had to strengthen the research on product fashion sense. In the late 1980s, Nike introduced gas shoes, which were marketed by Jordan's basketball skills and sold well all over the world.
In 1990, Nike's share increased from 25% in 1989 to 28%, while Reebok decreased from 24% to 2 1% in the same period. This successful counterattack made Nike realize that promotion on the basis of product innovation is the most powerful magic weapon. Nike can launch 654.38+0.2 million new products every year, and is currently testing a shoe that makes runners feel like running barefoot.
Inference
The success of Reebok made Knight start more introspection. Nike once regarded itself as an anti-culture, advocating rebellion and adventure, and despising the rules and regulations of big companies. For example, from 1997 to 1999, Nike doesn't have a CFO. Nike is full of school atmosphere, and employees come to work in sports shoes and sportswear.
"We never had a great plan and grew by intuition." Knight admits, "But as we become the number one in the industry, we must change the previous culture and make plans. Find a balance between discipline and innovation, creativity and organization. "
Since 1999, Knight has focused more on how to run the company. The first thing he did was to organize a new management team. In addition to relying on some old managers of the company, he also recruited some key managers from outside, such as Blair, 1999 CFO recruited from Pepsi.
In the past, Nike's culture encouraged local managers to spend a lot of money to expand market share, regardless of profit. 1998 When it sponsored the World Cup in Paris, Nike actually spent 1 10,000 dollars more than the budget, which made Wall Street wonder if someone was in charge.
Now, the new management of Nike has introduced the matrix structure. Nike headquarters decides what products to promote and how to do it, and the regional manager does not have as much autonomy as before.
Nike also improved its supply chain system. In the past, the company had 27 different systems around the world and could not talk to each other. After spending $500 million to establish a new system, the time of product pattern transmission and processing was accelerated, the gross profit increased from 39.9% five years ago to 42.9% in 2003, and the time to market for new shoes was shortened from 9 months to 6 months.
In order to reduce the dependence on sports shoes, Nike also acquired some complementary brands. In mid-August 2004, the company spent $4.3 million to acquire the official Starter Properties of a clothing brand. In addition, Nike is expanding into new markets such as female consumers, football, tennis and outdoor activities. In 2004, in the European football market, Nike surpassed Adidas' 3 1% for the first time with a share of 35%.
A low-key manager
Although Knight was fascinated by sports when he was young, he was still a man who was good at controlling his feelings. When he becomes very excited, he never makes a hullabaloo about or becomes excited. In front of everyone, Nate seems amiable, a little stiff and shy.
Like the 2,700 employees in Nike's headquarters, Knight always subconsciously looks at what kind of shoes guests wear when talking to others.
Nate tried to keep Nike's legend alive. He said that what he was most afraid of was that one day his grandchildren asked themselves, what is Nike?
But Nike's sales of high-priced shoes in Europe began to decline. In the United States, the demand of competitors such as K-Swiss, Diesel and Puma has increased, and Adidas has also increased its attack on the American basketball sporting goods market. At present, Nike occupies 60% of this market.
Knight has not appointed a successor, and the 66-year-old CEO has left too much speculation and anxiety on this issue.
Personal profile of Philip Knight:
Born in 1938
1959 obtained a degree in business administration from the University of Oregon.
1962 received an MBA from Stanford University.
Blue Ribbon Sports Company was founded with Bill Ballman in 1962, and changed its name to Nike in 1972.
As the CEO, president and chairman of the company.