Nike, Inc. (NYSE: NKE), the world's largest athletic footwear and apparel company, reported more than $30.6 billion in revenue for the fiscal year ending on May 31, 2015, and it has a market capitalization of $102 billion. Its business is centered around product design and development, product marketing activities, and sales. Nike sells its products wholesale to retailers around the world and also sells products direct to consumers online and at more than 930 Nike-owned retail stores.
Nearly all Nike products are manufactured under contract by independent suppliers. Nike's key footwear and apparel suppliers are primarily headquartered in East and Southeast Asian countries. In fiscal-year 2015, these suppliers operated factories in Vietnam, Indonesia and China that together accounted for roughly 95% of Nike footwear production during the year. Nike apparel production is likewise concentrated among independent suppliers operating factories in East and Southeast Asia. Nike also relies on technology companies, equipment suppliers, professional services firms and other suppliers to carry out its operations. Here is a handful of key Nike suppliers operating in countries around the world.
Pou Chen Corporation
Pou Chen Corporation (TAI: 9904.TW) is the largest footwear manufacturer in the world. It accounted for roughly 20% of the global wholesale market for branded athletic and casual footwear in 2014. Through the first three quarters of the 2015 calendar year, Pou Chen manufactured more than 230 million pairs of shoes for international brands, such as Nike, Under Armour (NYSE: UA), New Balance and Adidas AG (OTC: ADDYY). It also produces shoes for its own retail footwear business in China. Pou Chen has operated under contract with Nike since the 1990s. Neither company releases figures detailing their business relationship. Pou Chen has a market capitalization of $3.8 billion.
PT Pan Brothers Tbk
PT Pan Brothers Tbk (IDX: PBRX.JK) is an apparel manufacturer with a market capitalization of $246 million. Headquartered in Indonesia, the company and its operating subsidiaries produce garments of all kinds, including activewear, outdoor sportswear, casual clothing and fashion apparel. The company operates primarily under contract for international clothing brands. Its clients include many well-known global brands including Nike, Under Armour, New Balance, Calvin Klein and Guess, Inc. (NYSE: GES), among many others. PT Pan Brothers Tbk's business with Nike generates roughly 5% of its annual revenue.
Fulgent Sun International Holding Company
Fulgent Sun International Holding Company Ltd. (TAI: 9802) is a sports and outdoor footwear manufacturer with a market capitalization of $234 million. The company manufactures shoes under contract for brands such as Nike, La Sportiva and China's Li Ning Company Ltd. (HKG: 2331.HK). Headquartered in Taiwan, Fulgent Sun operates factories in mainland China, Vietnam and Cambodia. It has supplied Nike with shoes for over 10 years, as of 2016. In 2015, Fulgent Sun established a Vietnamese subsidiary, Sunray Footwear Company, to produce children's footwear for Nike.
Delta Galil Industries
Delta Galil Industries Ltd. (OTC: DELTY) is an Israeli designer, manufacturer and marketer of leisurewear, activewear, socks and undergarments. The company produces goods under contract for numerous global brands, from Nike and Walt Disney Company (NYSE: DIS) to Calvin Klein and Victoria's Secret. It also produces private-label products for retailers such as Wal-Mart Stores, Inc. (NYSE: WMT), Target Corporation (NYSE: TGT) and Kohl's Corporation (NYSE: KSS). Delta Galil Industries manufactures a variety of products under the Nike brand. It also operates two strategic development centers jointly with Nike to focus on innovations in socks and seamless knits. The company has a market capitalization of $679 million.
Eagle Nice International Holdings
Eagle Nice International Holdings Ltd. (HK: 2368.HK) is a sportswear manufacturer with a market capitalization of $138 million. Its primary business centers around manufacturing apparel destined for markets in East Asia. It operates under contract with international apparel brands including Nike, Puma SE (XETRA: PUM) and The North Face, a subsidiary of VF Corporation (NYSE: VFC). Eagle Nice is headquartered in Hong Kong and operates factories in mainland China and Indonesia. It does not provide figures detailing its business with Nike.