Nike (NKE), the world's largest athletic footwear and apparel company, has generated $40 billion in revenue over the last twelve months as of Oct. 2019, and it has a market capitalization of $139 billion. Its business is focused on product design and development, product marketing activities, and sales. Nike sells its products wholesale to retailers around the world and also sells products directly-to-consumers online and at more than 1,100 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. Much of Nike’s footwear is produced in Vietnam, Indonesia, and China.
Nike apparel production is also 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.
- Nike’s one of the world’s leading apparel and footwear makers, generating over $40 billion in revenues annually.
- Most of the company’s products are sourced from East and Southeast Asian countries.
- Major suppliers for its footwear include Pou Chen, PT Pan Brothers, Fulgent Sun International, Delta Galil, and Eagle Nice.
- Nike’s major suppliers also do business with other shoe and apparel makers, including New Balance, Adidas, Under Armour, Puma, and The North Face.
Pou Chen Corporation
Pou Chen Corporation is the largest footwear manufacturer in the world. It accounts for roughly 20% of the global wholesale market for branded athletic and casual footwear. Pou Chen can manufacture more than 300 million pairs of shoes, which is sold to international brands, such as Nike, Under Armour (UA), New Balance, and Adidas AG (ADDYY).
Pou Chen 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 $3.9 billion.
PT Pan Brothers Tbk
PT Pan Brothers Tbk is an apparel manufacturer with a market capitalization of $349 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.
PT Pan’s clients include many well-known global brands including Nike, Under Armour, New Balance, Calvin Klein and Guess (GES), among many others. PT Pan Brothers Tbk's business with Nike generated less than 10% of its annual revenue a number of years ago.
Fulgent Sun International Holding Company
Fulgent Sun International Holding Company Ltd. is a sports and outdoor footwear manufacturer with a market capitalization of $646 million. The company manufactures shoes under contract for brands such as Nike, La Sportiva, and China's Li Ning Company Ltd.
Headquartered in Taiwan, Fulgent Sun operates factories in mainland China, Vietnam and Cambodia. It has supplied Nike with shoes for over a decade. 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. (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 (DIS) to Calvin Klein and Victoria's Secret.
Delta Galil also produces private-label products for retailers such as Walmart (WMT), Target (TGT), and Kohl's (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.
Eagle Nice International Holdings
Eagle Nice International Holdings Ltd. is a sportswear manufacturer, where its primary business is manufacturing apparel destined for markets in East Asia. It operates under contract with international apparel brands including Nike, Puma, and The North Face—a VF Corp (VFC) subsidiary. 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.