bopsli.blogg.se - How to model for nike

How Does PayPal Make Money? The PayPal Mafia Business Model Explained.How Amazon Makes Money: Amazon Business Model in a Nutshell.How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained.How Does Twitter Make Money? Twitter Business Model In A Nutshell.What Is a Business Model Canvas? Business Model Canvas Explained.Read also: Nike Mission Statement, Who Owns Nike. Can’t just serve searchers for “sneakers,” and “running shoes.” Gotta create demand to grow+thrive. Gotta give them props - they know where their bread is buttered. Through cooperative advertising programs, the Company reimburses customers for certain costs of advertising the Company’s products. Other contracts provide for royalty payments to endorsers based upon a predetermined percent of sales of particular products.

Yet the extent that actual payments to the endorser differ from the Company’s estimate due to changes in the endorser’s performance, increased or decreased demand creation expense may be recorded in a future period. When the Company determines payments are probable, the amounts are reported in Demand creation expense ratably over the contract period based on the Company’s best estimate of the endorser’s performance. Certain contracts provide for variable payments based upon endorsers maintaining a level of performance in their sport over an extended period of time (e.g., maintaining a specified ranking in a sport for a year). The Company records demand creation expense for these amounts when the endorser achieves the specific goal. One key ingredient of Nike’s success seems to be demand creation.ĭemand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, television, digital and print advertising, brand events, and retail brand presentation.ĭemand creation expense increased 2% for fiscal 2017 compared to fiscal 2016, driven by higher sports marketing costs, as well as higher marketing and advertising costs, primarily to support key sporting events including the Rio Olympics and European Football Championship. North America represents the most significant market for Nike. Running and sportswear are the categories that generate the most revenues for the company. Men’s sales represent most of Nike’s total revenues. Others include all unisex products, equipment, and other products not allocated to Men’s, Women’s and Young Athletes’.

and internal sales from our wholesale operations to our Direct to Consumer operations, which are charged at prices that are comparable to prices charged to external wholesale customers.

NIKE Brand wholesale equivalent revenues consist of: Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating segment. Followed by Apparel, with $9.6 billion and the Converse segment with over $2 billion in revenues. With $21 billion in revenues in 2017, footwear represents 61.5% of the total income. In 2017 Vietnam, China, and Indonesia manufactured approximately 46%, 27%, and 21% of total NIKE Brand footwear, respectively. The largest single footwear factory accounted for about 8% of the total 2017 NIKE Brand footwear production.Īll of Nike’s footwear is manufactured outside of the United States by independent contract manufacturers who often operate multiple factories.

Nike is supplied by approximately 127 footwear factories located in 15 countries. NIKE has six significant distribution centers located in Memphis, Tennessee, two of which are owned and four of which are leased. Nike also markets products designed for kids, as well as for other athletic and recreational uses such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities Nike distribution and manufacturing Men’s Training includes baseball and American football product offerings. Sportswear (our sports-inspired lifestyle products).