Nike, Inc.

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Logo of Nike.

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Nike, Inc., is one of the largest and best-recognized global sports and athleticwear brands. Its extensive lineup includes its long-running Air Jordan, Air Force 1, and other “Air” models. Converse shoes and apparel (including those bearing the iconic Chuck Taylor All Stars logo) have also been a part of Nike since its 2003 acquisition.

Nike is known for its celebrity endorsement deals with top athletes, including Tiger Woods, LeBron James, and Serena Williams. The company has stayed relevant with consumers over the years through its savvy marketing, which includes embracing controversial topics. Since 2020, Nike has been led by president and CEO John Donahoe, but cofounder and long-time CEO Phil Knight remains active in the company, serving as chair emeritus.

Nike’s success has been tied to its ability to blend product innovation and marketing savvy to develop deep ties between its products and its customers.

The global sportswear giant traces its origins to 1962, when former University of Oregon track-and-field athlete Phil Knight toured the Onitsuka (now Asics) factory in Japan and was impressed by the firm’s quality and speedy production. The trip led to a deal to distribute the Onitsuka Tiger, the company’s signature shoe, in the United States. By 1964, Knight and his former University of Oregon coach, Bill Bowerman, formed Blue Ribbon Sports; they created the iconic Tiger Cortez in 1967, their version of the Onitsuka Tiger.

In 1971, Blue Ribbon split with Onitsuka; and the duo changed the firm’s name to Nike, after the Greek goddess of victory. Its “swoosh” logo—which became one of the world’s most recognized brand logos—was also introduced that year. Carolyn David, a Portland State University design student, charged $35 for the logo, although Knight eventually gave her 500 shares of stock in 1983.

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NBA legend Michael Jordan, pictured in 1988, entered into a partnership with Nike that helped launch sneaker culture.

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Nike went public in 1980, but struggled until, in 1984, the company spent its entire marketing budget to sign NBA rookie Michael Jordan in an attempt to breathe life into its basketball shoe division. Jordan signed a five-year, $2.5 million contract to promote the Air Jordan, a black-and-red basketball shoe that initially sold for $65 a pair (equal to $192 in 2023 dollars).

The Nike/Michael Jordan contract changed how brands sign athletes and other celebrities to marketing deals, as well as how brands market themselves. The National Basketball Association (NBA) banned Jordan’s shoes, and issued a $5,000 fine each time he wore them.

Nike embraced the ban and the controversy surrounding the shoes. The company paid the fines on Jordan’s behalf and created ad campaigns around the ban, saying, “The NBA can’t stop you from wearing them.” Within the first two months of the shoe’s release, Nike sold $70 million worth of Air Jordans. By the end of 1985, the firm reported revenue in excess of $100 million.

In 1997, Nike spun the Jordan brand into its own division. Instead of the Nike swoosh, Jordan-branded shoes, apparel, and accessories feature the “Jumpman” logo, a silhouette of Jordan in midair, holding a basketball.

The success of using controversy and continued creative marketing helped to cement Nike’s status with one foot in the serious sports world and another that spoke to the non-athlete to challenge the status quo. In 1987, Nike used the Beatles song “Revolution” to promote its Air-branded shoes, the first time the band’s music was used in advertising. In 1988, Nike created its enduring slogan “Just Do It.”

Beginning in the late 1980s, Nike began actively expanding its business and diversifying its product line beyond just athletic footwear.

The company’s growth also introduced controversies about poor working conditions and low pay for workers in its Indonesian factories in the 1990s; the company responded by creating factory codes of conduct. In response to a wave of protests, Nike raised worker minimum ages and adopted U.S. clean-air standards in non-U.S. factories. The company continued to address concerns about labor issues through the 2000s in its overseas factories. In the 2020s, Nike faced a gender pay discrimination lawsuit.

Nike willingly stepped into controversy in 2018 when it unveiled an ad campaign tied to the 30th anniversary of its “Just Do It” logo. The company featured former San Francisco 49ers quarterback Colin Kaepernick, a civil rights activist, best known for protesting social injustice and police brutality by kneeling during the playing of the national anthem at a National Football League game. The ad used Kaepernick’s image and a quote saying “Believe in something. Even if it means sacrificing everything.” Although the ad sparked backlash—primarily among those aged 65 and older—the campaign proved to be popular with Nike’s customer base, particularly those between ages 18 and 34.

Nike has a mixed record when it comes to supporting its spokespeople when they run into trouble, standing by Tiger Woods, Kobe Bryant, and Cristiano Ronaldo, but dropping Maria Sharapova, Lance Armstrong, and former NFL player Ray Rice when they were involved in scandals.

Nike has a diverse product lineup, from shoes to apparel to health products, and it has managed to maintain its “coolness” since it first signed Michael Jordan to promote its shoes. The brand has retained this status throughout the decades by positioning itself—and acting as a connection—between the top athletes in the world and everyday consumers.

Nike has come a long way from its beginning as a shoe used by track-and-field athletes. Thanks to its innovative marketing, the brand is also an emblem of style, taste, and the competitive spirit that lives within amateurs and professionals alike.