Nike, the iconic brand of sportswear and footwear, is a global giant with a fascinating manufacturing history. But where exactly are Nike products made?
This guide and video explore the behind-the-scenes of Nike’s production in Asia, shedding light on the processes and strategies behind this global success, perfectly illustrating the “China Plus One” strategy.
The Legacy of Nike: From Oregon to Asia
Nike’s journey began in 1964 under the name Blue Ribbon Sports, a small distributor of Japanese running shoes founded by Bill Bowerman and Phil Knight. In 1971, the company rebranded as Nike, inspired by the Greek goddess of victory. Nike’s path, marked by innovation and strategic expansion, has made it an undeniable force in the sports industry.
In the 1980s, Nike made a decisive move by relocating much of its production to Asia. This strategic decision was driven by several factors, including the availability of skilled labor, efficient factories, and expanding markets.
Countries like South Korea, Taiwan, and China became key partners, allowing Nike to explore new techniques and incorporate cultural influences into its products. In 1995, Nike established itself in Vietnam, becoming a major economic player. This move marked a turning point for the brand, solidifying its presence in the region and deploying the “China Plus One” strategy.
Why Relocate Production to Asia?
In recent years, Asia has emerged as a global manufacturing hub, attracting companies from around the world. Several factors explain this attractiveness:
- Lower labor costs in many Asian countries allow for more cost-effective production, providing a competitive edge in the global market.
- Companies can easily find skilled individuals mastering the latest manufacturing techniques, ensuring high-quality products that meet international standards.
- Well-established supply chains in Asia, developed over years, facilitate the movement of goods from factories to consumers.
Nike’s Footprint in Asia
Nike’s manufacturing network in Asia exemplifies the use of regional expertise for global success. Vietnam, in particular, has become a pillar of Nike’s supply chain and a flagship country in their “China Plus One” strategy.
Watching this video will allow you to:
- Understand Nike’s manufacturing strategies in Asia.
- Discover where most of Nike’s suppliers are located.
- Learn how to leverage this information to identify key factories and suppliers for your business.
By 2023, Vietnam became Nike’s largest manufacturing hub, producing 50% of the company’s footwear, more than any other country in the world. Vietnam is also the largest producer of Nike apparel, contributing 29% to the brand’s global output.
>> Related article : The Best of ‘Made in Vietnam’ products for Sourcing
China, with its vast industrial base and technological prowess, remains a key player in producing Nike apparel and other products. Indonesia, known for its diverse manufacturing capabilities, contributes to the production of specialized sports equipment.
Vietnam’s legacy of craftsmanship and quality assurance, combined with China’s industrial strength and Indonesia’s specialized capabilities, creates a dynamic and resilient network that drives Nike’s global success.
Other Brands Manufacturing in Vietnam
Nike is not the only brand exploiting the potential offered by Vietnam to centralize part of its production and adopt the “China Plus One” strategy.
Other giants in the sportswear and fashion industry, such as Adidas, Puma, and Uniqlo, have also made Vietnam a central hub in their supply chains.
Adidas
Adidas has significantly reduced its production in China and shifted much of it to Vietnam. Currently, about 50% of their shoes are made in Vietnam.
>> Related article : Where are Adidas factories located?
Puma
Vietnam has become the largest sourcing region for Puma’s shoes, with about 26% of their branded products made in the country.
Uniqlo
Uniqlo, Japan’s largest fashion chain, has also recognized Vietnam’s manufacturing potential. The company has increased its number of major suppliers in the country by 40% over the past year.
These examples from numerous major brands highlight Vietnam’s prime position as an ideal destination for supply chain diversification and a strategic reallocation of production away from China.
>> Related article : How to Implement a Global Sourcing Strategy with Vietnam?
Nike’s strategy in Asia, perfectly illustrating the “China Plus One” approach, is a lesson in leveraging regional expertise for global success. By adapting to the specificities of each region, Nike has created a dynamic and resilient manufacturing network, ensuring a prosperous future for the brand and maintaining control over their global supply chain.
Related
Source: Vietnam Insider