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
design by Dóri Sirály for Prezi