Nike

Raw material
Nike uses many materials to make all their products but there are only six main materials that
make up the majority of all their products mass. First the polyester, 19 percent of the polyester
Nike uses is recycled. Nike helped recycle 82 million plastic water bottles to make polyester out
of. The world cup jerseys Nike made in 2010 were 100% recycled polyester each using eight
plastic bottles. The solid plastic bottles are broken down into pieces and then melted to a liquid
when they are then made into polyester strands. China and India are the main polyester producers
worldwide. The next main material Nike uses is rubber and they have used more and more
environmentally preferred rubber. Well over 70% of Nikes shoes now use environmentally
preferred rubber. Nike released their environmentally preferred rubber in 2002, this altered rubber
is made by incorporating more benign accelerators and vegetable oils, they also modify the
processing. Thailand, Indonesia, Malaysia are the top producers of rubber around the world. Eva
foam is a very environmentally friendly material used in many shoes. The main producers of Eva
Foam are located in China. EVA stands for Ethylene Vinyl Acetate. Eva Foam is one of the most
efficient and cheap materials that Nike uses in their shoes. The next material nike widely uses is
cotton. Nike is proud to say that they are using more and more organic cotton every year and plan
to keep this trend going. Organic cotton means that it is harvested without chemical pesticides, no
fertilizer, and defoliants. Nike gets most of its cotton from suppliers in China, India, Turkey, and
the United state Of America. Nikes plan is to have at least 10% of organic cotton in all of their
appeal that contains cotton by 2015. Synthetic leather is also used often in nike products.
Synthetic leather is a man made fabric the is made to look and feel like real leather but function
better then real leather. Nike uses synthetic leather in many of their products because it is cheaper
then real leather, tends to be more breathable, and easier to clean. China and Taiwan are the
leading supplier of synthetic leather worldwide. Nike also uses real leather that is LWG certified.
Nike is one of the worlds largest users of white leather and teams up with tanners, suppliers, and
other distributers to be most efficient. Nike does not believe in harvesting leather from animals in
the amazon because they believe that it is contributing to the deforestation but before 2011 they
were using leather taken from the Amazon. Nike gets their leather from tanners and suppliers in
China and Vietnam. Nike uses 1,500 different material vendors, suppliers, and companies. All the
companies that they buy from are independent businesses.
Process
Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of
Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide.
Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world
wide.There are 785 contract factories with more then 1 million workers manufacturing more then
500,000 different products. To make the shoe the worker first cuts all the material in the shapes
and forms they need to be in, they then sew the pieces together on the upper section above the
sole. The workers then prepare the sole also called stock fitting, followed by preparing the
attachment of upper to the sole also know as lasting. Then the worker attaches and shapes the
bottom heel to its final form this process is called heeling. The finishing touches are made and any
necessary accessories are then attached in the process called treeing.
Distribution
Each Country or region of the world has its own Nike distribution center so that shipments can be
sent out in reasonable time periods. In Europe Standard shipping from Nike is 5 euros and takes 3-
4 business days to arrive, express shipping is 15 euros and take only 2 business days. Their are
also different times for remote locations and special orders. In the United States it is $8.00 for
standard shipping and it can take 2-3 business days to arrive, you can also pay $ 15.00 for 2-3 day
shipping, or $25.00 for 1-2 day shipping. Every country has different shipping prices, regulations,
and standards because in many of the countries Nike is not nearly as popular and in some of the
countries the mail systems are not as advanced making it more difficult for consumers to buy these
products. When an order is places on the Nike website it is processed in Memphis Tennessee
where the big distribution center is located. All the orders on the Nike website from the united
states are filled and shipped from Memphis Tennessee.
Consumer
According to 2013 Nike stats, the demand for Nike Brand footwear is continuing to grow. In the
Fourth Quarter of 2013 revenue was up 7% to $6.7billion. According to Nike, each year they are
making more and more product, and consumers continue to buy more and more product. As of
now Nike is still continuing to be a growing company that is becoming more and more global each
year with new consumers to think about and please.

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