Nike
Secrets of its icons
Description
Phil Knight, the founder of Nike, was nicknamed "Buck" and studied accounting at the University of Oregon, where he was coached by Bill Bowerman in track. Knight wrote a paper at Stanford proposing the idea of Japanese-made running shoes competing with German brands. He then traveled to Japan, where he encountered Tiger brand shoes by Onitsuka Co. and presented himself as an American shoe importer.
Knight and Bowerman formed Blue Ribbon Sports with a handshake agreement, starting with an order of 300 pairs of Tiger shoes. Their business grew, and they faced challenges with Onitsuka, leading them to create their own brand, Nike, with the iconic "Swoosh" logo designed by a student.
Nike's first product was a soccer shoe, but issues with its durability led to a pivot towards other sports footwear, eventually establishing Nike as a leading brand in the athletic shoe market.
Table of contents
01Tiger era beginnings
Philip Hampson Knight, the visionary behind the global brand Nike, was affectionately known by his nickname ‘Buck’ from an early age, a moniker that remained with him throughout his life. His academic journey led him to the University of Oregon, where he pursued a degree in accounting, before advancing to the prestigious Stanford School of Business for further education.
During his time at the University of Oregon, Knight became a member of the track team, receiving coaching from the legendary Bill Bowerman, who was renowned for his ability to develop successful mile track runners. Knight demonstrated considerable talent as a runner, achieving significant success in races. However, his athletic performance was overshadowed by another team member, Jim Grelle, who would later represent the United States at the Olympic Games.
While at Stanford, Knight was tasked with writing a paper on a small business idea, which led him to explore the potential impact of Japanese manufacturing on the German-dominated running shoe market. He hypothesized that by leveraging inexpensive Japanese labor, an American distributor could offer track shoes that rivaled the quality of Adidas but at a more competitive price. After completing his education, Knight sought to gain international experience before settling into a corporate career. With financial support from his family, he embarked on a journey to the Far East in 1962, where he developed a deep appreciation for Japan and its culture. During his visit, he encountered imitation Adidas running shoes manufactured by Onitsuka Co. Ltd of Kobe, which piqued his interest.
In a bold move, Knight visited Onitsuka Co. and introduced himself as an American shoe importer. He was warmly received and promised to place an order for a new leather shoe they were developing, upon receiving samples. When asked for the name of his company, Knight spontaneously responded with ‘Blue Ribbon Sports’, a name that he conceived on the spot. Unbeknownst to Knight, Kihachiro Onitsuka, the founder of Onitsuka Co. Ltd., had recently studied the American market and was looking to appoint American distributors with expertise in specific sports, seeing Knight as an ideal partner for entering the American running shoe market.
02Years of change
Phil Knight, in his quest to establish a distinctive identity for Blue Ribbon's new shoe line, reached out to an art student he was acquainted with, requesting her creative input for a name and logo. The student's creation bore a resemblance to a check mark, which, following a customer's reference to it as "the Swoosh fiber," became affectionately known within Blue Ribbon Sports as the swoosh.
As the time approached to commence the production of packaging boxes, Knight was struck by the realization that the brand still lacked a name. Despite several options being considered, none resonated until Jeff Johnson, inspired during one night, proposed "Nike" - named after the Greek mythology's winged goddess of victory. Although Phil Knight's initial reaction was tepid, the absence of a better alternative led to the adoption of the name.
03Life behind scenes
Between the years of 1977 and 1980, Nike experienced a meteoric rise, transforming from a modest $28 million privately held entity into a colossal $240 million publicly traded corporation. Despite the fact that Adidas footwear was generally recognized for superior craftsmanship compared to Nike's offerings, Blue Ribbon Sports embarked on an innovative journey, launching new footwear models that quickly set the standard for running shoes. Nike's groundbreaking features, including flared soles, waffle-patterned bottoms, heel counters, vibrantly colored nylon uppers, and enhanced padding, revolutionized the impact absorption of running on hard surfaces.
As the running craze swept across the United States, Blue Ribbon Sports adeptly rode the wave of this burgeoning movement. By the late 1970s, a significant portion of the adult population in the United States had engaged in jogging at least once, and the allure of the running lifestyle extended even to those not actively participating in the sport. Consequently, running shoes began to gain acceptance as appropriate footwear across various social contexts.
Blue Ribbon Sports' marketing strategy was straightforward yet effective: leverage endorsements to forge a psychological advantage inherent in every sport, appealing to the average consumer's desire to emulate their sporting idols.
In an effort to support athletes transitioning from university sports to professional training, Blue Ribbon Sports established Athletics West, a running club inspired by similar organizations in New Zealand and Europe. This initiative not only provided top-notch training facilities but also nurtured numerous athletes who would go on to achieve significant success, including Mary Decker.
While competitors like Converse and Adidas vied for endorsements from NBA stars, Blue Ribbon Sports innovatively targeted college basketball teams, offering coaches cash incentives and Nike footwear for use in high school coaching clinics.
04Decade in spotlight
Nike initially emerged as a mere brand name but evolved into an athletic footwear icon through the efforts of Knight and his team, affectionately known as the Buttfaces, ultimately becoming a symbol of the quintessential American success story. By the year 1981, Nike had ascended to the status of a publicly traded entity, boasting revenues of $458 million, a retail network encompassing 8,000 outlets, a diverse portfolio of 140 shoe models, a robust sales force of 130 representatives, a workforce of 2,700, and a broad base of shareholders. Despite this veneer of corporate respectability, Nike maintained a reputation for its irreverent corporate culture, often likened to the edgy humor of "Saturday Night Live" within the corporate circles of the Fortune 500.
The influx of capital was visibly altering both the individuals at the helm and the corporate ethos. The company's celebrations became increasingly extravagant, and the sales meetings grew so large and boisterous that soon, the more dignified dining establishments and conference venues in proximity to Nike's headquarters began to turn away the company's business. During one particularly memorable sales conference orchestrated by Rob Strasser, one of the Buttfaces, Nike's sponsored events for coaches and athletes across various sports began to take on legendary proportions. This penchant for lavishness was also evident at the grand annual Nike Nite for Retailers, which drew in over a thousand of the nation's top retailers into a private hotel banquet hall to rub shoulders with elite athletes.
Phil Knight, the visionary behind Nike, proclaimed to market analysts that the company was repositioning itself not just as a footwear manufacturer but as a comprehensive sporting goods enterprise, dedicated to crafting the most advanced technical footwear in the world. Furthermore, Nike set its sights on expanding its international and apparel sales. In a pivotal move in February 1981, Knight tasked Rob Strasser with establishing Nike's European operations from Amsterdam, with the simple directive to "Sell shoes" and "Be a businessman." Strasser identified three strategies for marketing Nike products abroad: establishing Nike-owned subsidiaries, partnering with independent distributors, or licensing the Nike brand. He opted to promote running as the central theme for Nike in Europe, a decision that would shape the brand's international image.
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