See what's happening with Nike Football. Nike is accused of manufacturing its shoes under the sweatshop condition in Asian countries which make a large hue and cry among the media. Nike faced allegations of running sweatshops, participating in child labor, and underpaying employees. This timeline shows Nike's revenue in Greater China from to , by segment.
The answer to this question is easy because Nike has a website that tells us exactly where it manufactures its products. The Oregon-based company Nike operates in countries and has more than 44, employees. In what countries are Nike products sold? Nike operate in 45 different countries around the world and the majority of production occurs in Asia. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.
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The reason that Nike has all of its major factories in Asia is due to the low cost of wages and the ability to produce high quality products for a fraction of the cost of that in North America.
It's simply better business for major corporations to shift their production to lower-cost countries, in order to maximise their profit margins. Having a large brand comes with a need for extremely large volumes of goods.
For example, seasons are spread out year-round because of both sides of the hemisphere, so due to this Nike needs to be able to manufacture winter and summer gear literally days a year.
This is a lot of product that needs to be created just for Nike to accommodate all of the seasons year-round. When looking at material costs in North America, you'll see a high price for a minimal product. The best way to keep profit margins healthy is to move their significant factories to places like China and Vietnam, where Nike can outsource their factories and keep employees indirectly contracted through a third party.
When looking at a profit margin of Nike's running shoes are estimated to cost approximately USD 4. This leaves a considerable profit margin for the company, and to buffer in all of their other operational, marketing, and corporate expenses.
Think about all of the multi-million dollar sports sponsorship deals, they need to be able to cover these somehow. In Asian countries, the cost of living is comparatively low, and so in turn so is the minimum wage. This nearly cuts wages in half for Nike. Keeping the costs of producing low, ensuring quality across the range is high, and charging a considerably premium price, all combines to show exactly why Nike is the largest sports brand in the world.
When looking at China, you can find over a billion people residing in this country. Because of the relatively large population, you can fill more space in factories, and the competitive nature of jobs means that skill levels can be high. Having industry in these larger countries helps communities and brings in income to every corner.
Supplier Group: Where applicable, this site lists the supplier group name for the contract factories shown on this map. A supplier group includes a parent entity and all of the subsidiary entities the parent company directly or indirectly owns or controls. You Selected. Key Terms Workers: : The total number of workers is calculated based on the total number of employees at each contract factory.
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