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Nike Shoe Production

Materials

  • Nike provides the factories with all the materials
  • Materials needed:
  • Polyester- grown(United States), yarned, and textiled(Indonesia)
  • Rubber (Thailand)
  • Plastic
  • Cotton (India, and United States)
  • The sent to South Carolina to the fabricated, dyed and finished
  • Leather- coming from corn fed cattle (Brazil and United States)
  • Sent to China to be finished

This is the primary markets

Shoe Production

This is the secondary market

  • All the materials after being furnished, are sent to factories in China.
  • Transported by both plane and ship
  • When transported the process of the shoe beings right away
  • Cotton is woven for parts of the shoes(mainly shoes laces)
  • Sewing takes place to form the sole
  • Next lasting is done which is the process of preparing the attachment of the upper part of the shoe to the sole
  • Heeling attaches and shapes the heel and the bottom into the final form
  • To finishthe shoe, it then goes through the treeing process which is when the accessories are attached to the shoe
  • This is all done through machinery
  • Jobs are needed to work the factory machinery

Locations and Labor

Final Product/Transportation

  • Nike Head Quarters- Beaverton, Oregon
  • Nike has never produced a product in the United States
  • Hundred of factories around the world
  • China, Vietnam, Indoesia, Inda, ect.
  • Nike hires factory owners to produce the product
  • Nike provides the materials and design
  • When final product is complete, the shoe is placed in to a card board box.
  • The cardboard box is made of recycled cardboard and recycled paperboard that is stuffed in the shoe
  • Nike uses ocean freights, transporattion airplanes or even trucks
  • Depends on where they are traveling too(over land or not)
  • From here they are taken to different retailers around the world to be put into department stores, shoes stores, specialty stores, outlet stores, ect.

Pricing

This is the Tertiary markets

  • In total it only takes Nike $20 to create a shoe
  • Production Labor- $2.75
  • Materials- $9.00
  • Renting equipment- $3.00
  • Operation profit- $1.75
  • Duties- $3.00
  • Shipping- $0.50
  • Research Development- $0.25
  • Promotion and Advertising- $4.00
  • Sales, Distribution- $5.00
  • Operating profit- $6.25
  • Cost to retailer- $35.00

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