The History of Nike from 1964-2024 – A Masterclass in Growing a Global Brand

Few brands have shaped consumer behavior, athletic trends, and marketing strategies as profoundly as Nike has.

The history of Nike not only includes its iconic Nike swoosh logo, sponsorship of high-profile athletes, and innovative strides in sports apparel and footwear.

It also embodies a narrative of perseverance, groundbreaking marketing, and a relentless pursuit of excellence that continues to define its legacy today.

Its story serves as a blueprint for innovation and branding, offering insights for entrepreneurs and marketers.

At Business2Community, we’ve meticulously curated the facts and statistics tracing the history of Nike and its success. Let’s take a closer look at these insights, and discover how you might leverage them to elevate your marketing and business strategies.

The Nike History Timeline: A Quick Overview

• Nike, founded by Phil Knight and Bill Bowerman in 1964 as Blue Ribbon Sports, has profoundly influenced consumer behavior, athletic trends, and marketing strategies.
• The brand’s legacy encompasses perseverance, groundbreaking marketing, and a relentless pursuit of excellence, shaping its iconic swoosh logo, high-profile athlete sponsorships, and innovative sports apparel and footwear.
• Nike’s story serves as a blueprint for innovation and branding, offering insights for entrepreneurs and marketers.
• Business2Community curated key facts tracing Nike’s history and success, highlighting milestones.
• Phil Knight and Bill Bowerman’s partnership laid the foundation for Nike’s success, rooted in Knight’s experiences as a University of Oregon student and runner.
• Nike’s growth journey, from Blue Ribbon Sports to its rebranding in 1971, marked a significant transition.
• The company’s global manufacturing network, retail expansion, and iconic shoe releases like the Air Jordan line propelled Nike’s success.
• Nike’s strategic acquisitions, endorsements from high-profile athletes, and its “Just Do It” slogan have contributed to its dominance in the sportswear market.
• Despite facing challenges and controversies, including labor practices and environmental concerns, Nike has reaffirmed its commitment to sustainability and social responsibility.
• Nike’s future entails further innovation, cultural impact, and athletic excellence, inspiring athletes and shaping global trends in sports and fashion.

Who Founded Nike?

Phil Knight and Bill Bowerman founded Nike as Blue Ribbon Sports (BRS) in 1964 in Eugene, Oregon. The idea for one of the world’s most valuable brands stemmed from Knight’s experiences at Hayward Field at The University of Oregon and during his time at Stanford Business School.

As a University of Oregon student and runner, Phil Knight formed a close connection with his track and field coach, Bill Bowerman. Knight drew upon his mentor’s expertise in athletic footwear, a partnership that would significantly shape the company’s future.

Blue Ribbon Sports wanted to introduce affordable, high-quality Japanese running shoes to the American market. Phil Knight’s business idea took off in 1963 when he persuaded Japanese businessmen to export their renowned Onitsuka Tiger running shoes to the US, securing exclusivity in their sales.

Phil Knight and Bill Bowerman invested $1,000 — $500 each — to purchase 300 pairs of shoes from Onitsuka Tiger at $3.33 per pair, kickstarting the inventory for Blue Ribbon Sports. This initial investment laid the foundation for what would later become Nike.

Growth and Development of Nike

In December 2023 Nike held a remarkable value of $176 billion and has retained the esteemed status as the most valuable apparel brand globally. Here’s how it got to that point.

Transitioning from Blue Ribbon Sports to the Birth of Nike

In 1963, Phil Knight went on a trip to Japan, where he had a pivotal encounter with Onitsuka Tiger, a Japanese shoe supplier and leading athletic shoe manufacturer. While in Japan, Knight proposed to Onitsuka Tiger that he would become the exclusive distributor of their shoes in the US.

According to Japan Today, Phil Knight didn’t have a company at that time. He created the name “Blue Ribbon Sports” on the spot during discussions with the Japanese company.

The deal with Onitsuka Tiger allowed Knight to introduce Japanese athletic shoes to the American market. With the demand for Onitsuka Tiger’s products steadily growing, Knight realized the need for additional support.

In 1968, Phil Knight hired his first employee, Jeff Johnson. Johnson wore many hats, overseeing sales, managing accounts, and crafting the initial promotional materials for Blue Ribbon Sports.

His arrival significantly laid the groundwork for Nike’s future growth. Johnson’s passion for running, creative input, and dedication were crucial in shaping the company’s early identity and success.

In 1966, Jeff Johnson opened the first BRS store on Pico Boulevard in Santa Monica, California.

Blue Ribbon Sports officially rebranded as Nike, Inc. in 1971. In fact, it was Johnson’s idea to rename BRS as “Nike”, inspired by the winged Greek goddess of victory.

On May 1, 1972, the contract between Onitsuka Co. and BRS was terminated because the exclusivity agreement was jeopardized. Faced with this betrayal, Knight had to break away from the shoe factory, marking the end of their relationship and propelling him towards establishing Nike as its own brand.

Since 1971, Nike has transformed from relying solely on a Japanese supplier to establishing a vast global manufacturing network for footwear and apparel.

The first Nike shoe factory store was established in Portland, Oregon in 1984. This facility played a pivotal role in the early production of Nike shoes, marking the beginning of the brand’s journey into footwear manufacturing.

As of its 2021 annual report, Nike has sourced products from 191 footwear factories in 14 countries and 344 apparel factories in 33 countries, showcasing the scale of its global manufacturing operations.

Furthermore, Nike’s manufacturing expansion strategy culminated in the launch of Nike Town in Portland in 1990. Subsequently, more Nike Town store openings followed in Chicago (1992), New York City (1996), London (2001), and several other locations in the years to come.

The History of Nike Shoes

Knight’s business vision was fundamental in steering Nike’s growth, while Bowerman’s innovative shoe designs and emphasis on athletic performance significantly shaped Nike’s footwear evolution.

Among the multitude of iconic footwear that has shaped the history of Nike, let’s take a look at Nike’s key shoe designs that have stood out, each leaving an indelible mark on the brand’s journey.

The First Nike Shoe

“Moon Shoes” were the first shoes Nike launched and are a significant artifact. They were designed by Nike co-founder Bill Bowerman in 1971. The concept originated from his endeavor to craft lighter and sturdier running shoes.

Drawing inspiration from his breakfast waffle iron, Bowerman fashioned a textured outsole to enhance traction, later coined the Nike Waffle Racer.

The Nike Cleat Debut

In 1971, Nike introduced its first leather soccer shoes “The Nike”. They featured an innovative design that incorporated studs for enhanced traction on the field. This cleat marked Nike’s initial venture into the football (soccer) market, showcasing the brand’s commitment to sports innovation and performance.

According to sports enthusiasts, the Nike football shoes were originally designed for the 1970 World Cup in Mexico. However, despite the intent, none of the players ended up using the football “boot” in the games.

Featuring the iconic Swoosh logo and available solely in US size 9, the boot sold for $16.95. However, it wasn’t suitable for colder climates, leading to cracking issues in the US weather.

In 1982, Nike entered the European Champion Clubs’ Cup market, with all its players with Nikes on their feet. Additionally, that same year Nike signed a deal with Ian Rush, playing for Liverpool FC, making him the first Nike football athlete in Europe.

The History of Nike Cortez Classic Athletic Shoes

Nike’s 1972 launch of the Cortez marked a milestone in the athletic shoe market. The company’s co-founder Bill Bowerman designed the shoe in the mid-60s to create a durable and comfortable running shoe for both distance training and road running.

Sneaker enthusiasts noted that The Nike Cortez release corresponded with the 1972 Summer Olympics and immediately captured public attention. This was evident in the significant increase in Nike’s annual sales to $1.3 million that same year.

The original Cortez design by Bowerman was made by Onitsuka Tiger and launched for the 1968 Mexico Games. After the two companies split, Nike decided it was right for Cortez to be part of their brand. After a legal fight, they managed to keep the name in 1974, so the shoe is now called the Nike Cortez.

The Most Popular Shoe: Air Force 1 Series

Nike launched The Air Force 1 shoe in 1982, the first basketball shoe to utilize Nike Air technology. It featured a high-top design and innovative Air cushioning in the sole, providing exceptional comfort and support for basketball players.

NBA’s most prominent players during that era, such as the “Original Six” consisting of Michael Cooper, Bobby Jones, Moses Malone, Calvin Natt, Mychal Thompsen, and Jammal Wilkes, sported the Air Force 1 shoe.

The AF 1 quickly gained popularity not only on the court but also in streetwear fashion, becoming an iconic sneaker and a timeless classic in Nike’s lineup. According to Vogue Magazine, AF 1’s have become the go-to sneakers for many fashion icons such as Victoria Beckham, Hailey Bieber, JLo, and more.

The notorious sneaker has been produced in over 1,700 color combinations and has had various limited, special, and premium editions. This extensive range has contributed to its enduring popularity, with sales consistently exceeding $800 million annually.

Nike Dunk Basketball Shoes

The Nike Dunk was designed in 1985 as a basketball shoe that offered high performance and versatility on the court for college sports teams.

Traditionally, college basketball players tended to sport single-color shoes, like white or black. However, Nike introduced the College Colors Program, enabling schools to customize shoes reflecting their team’s colors, as seen in the Nike Dunk. The original “Be True to Your School” ad campaign showcased this initiative.

The Nike Dunk found its way into the skateboard world in the 2000s. It gained further prominence in 2005 with the Staple x Dunk collaboration’s limited-edition Nike SB Dunk Low NYC Pigeon.

With just 150 pairs released at Reed Space’s New York storefront, the event sparked significant buzz, resulting in police involvement and making headlines on the New York Post cover.

Running on The Air Max Bubble

The Air Max 1 was designed by Tinker Hatfield and made its debut in 1987. The sneaker model showcased a visible Air bubble which set the precedent for future Air Max models. It was the first line to feature a visible Air-Sole unit, revolutionizing cushioning technology in sneakers.

Over the years, the Air Max line has expanded and evolved, introducing various technologies and designs, such as the AM 90, AM 95, AM 360, and more.

For example, the use of advanced materials like Flyknit, engineered mesh, and lightweight synthetics has contributed to the sneakers’ comfort, durability, and performance.

Nike By You Custom Shoes

Nike’s custom shoes, known as “Nike By You,” were introduced to offer personalized sneaker options for customers. Initially launched as NikeiD in 2000, this service has evolved into Nike By You, providing extensive customization choices for users to create unique sneakers that reflect their styles.

Nikey By You offers multiple avenues for customers to personalize their sneakers such as online, in-person at selected stores, and via their mobile app. During the design process, customers can enjoy a 360-degree view of their designed shoe.

Nike By You customization options differ amongst shoe models. Customers can choose between different materials such as synthetic leather or ripstop. Additionally, various color components can be personalized on different sections of the shoe such as:

• Base
• Tongue
• Lace
• Nike Swoosh accent
• Outsole
• Upper
• Lining
• Vamp stitch
• Midsole
• Heel/text logo
• Heel
• Lockdown system
• Nike Swoosh
• Midsole accent

The History of Nike and Michael Jordan Sneakers Era

In the spring of 1985, Nike launched the iconic Air Jordans alongside basketball legend Michael Jordan, marking the beginning of Jordan’s playing career. Initially, doubts arose about investing heavily in a rookie basketball player, yet Nike took the gamble.

Jordan’s extraordinary talent and rapid rise to stardom not only validated their decision but also solidified the Air Jordans’ success, revolutionizing basketball shoe marketing and sales strategies. The black/red Air Jordans 1 edition was designed by Peter Moore and priced at $65. Within the first month, sneaker sales surpassed $50 million and reached over $100 million by the year’s end.

The original Air Jordan was the sole model to showcase the Nike Swoosh logo. Preceding the iconic Jumpman logo, the first Jordan shoe also displayed the Wings logo.

Nike trademarked the Wings logo on May 7, 1985. The logo had an image of a basketball with wings extending from each side, topped with “Air Jordan”.

In 1985 The NBA fined Michael Jordan for wearing the Nike Air Jordan sneakers. Jordan received a $5,000 fine per game for wearing the black and red Air Jordan 1s because they violated the NBA’s uniform policy at the time. Nike covered the fines, transforming the controversy into a marketing opportunity, as the shoes gained immense popularity.

Michael Jordan contributed to Air Jordan’s popularity because fans aspired to “Be Like Mike”. Even post-retirement, Air Jordans maintained their dominance as the top basketball shoe. In 2012, the sneaker accounted for over 50% of all US basketball shoe sales and more than three-quarters of youth basketball shoe sales.

The Jordan Brand

Nike introduced the first Jordan Brand store in New York City in 2014. Subsequently, more Jordan doors emerged across North America, including Chicago’s Station 23 in 2015 and the West Coast’s flagship door, Jumpman LA, in 2018.

In April 2023, Michael Jordan’s Air Jordan 13s worn during the 1998 NBA finals, set a record for the highest price ever paid for a pair of sneakers. They sold for $2.2 million at a Sotheby’s auction.

Nike’s Revenue Growth Since 1964

In its initial year, Blue Ribbon Sports recorded $8,000 in shoe sales. Phil Knight strategically reinvested these earnings to expand the company’s salesforce by hiring its first employee, Jeff Johnson.

By 1965, BRS revenue grew to $20,000 which helped the company open its first store in Santa Monica, California in 1966.

According to Phil Knight’s account in his book “Shoe Dog,” Blue Ribbon Sports experienced a revenue surge in 1969, with $150,000 in sales. Furthermore, the company forecasted a doubling to approximately $300,000 for the subsequent year.

Nike has confidently stood as the world’s most valuable sportswear company, with a total market capitalization of $174 billion as of 2023. In May 2023, the company set an annual revenue record, exceeding $50 billion in sales.

In 2022, Statista reported Nike as the top revenue generator among leading sportswear brands, commanding an 18% share of the global market. Meanwhile, Air Jordan secured the second spot with an 11% global market share.

Furthermore, in 2023, Nike secured the top spot among global apparel brands, with brand value exceeding $74 billion. Nike’s dominance in revenue generation among sportswear brands reflects their effective strategy of endorsing high-profile athletes.

In the fiscal year ending May 31, 2023, Nike’s direct-to-consumer brand, NIKE Direct, generated $21.3 billion in revenue. This substantial figure underscores the robust financial impact and success of Nike’s direct sales strategy.

In 2023, footwear accounted for 68% of Nike’s revenue. Given this statistic, it’s clear that footwear remains the cornerstone of Nike’s business and is integral to the brand’s image, positioning Nike as a leader and innovator in the global footwear market.

Key Nike Acquisitions That Expanded Nike’s Portfolio

Nike’s acquisitions have allowed the Nike brand to diversify its portfolio, expand into new markets, and leverage the strengths of these brands within its broader business strategy.

Nike made its first acquisition in 1988 with the purchase of Cole Haan for $95 million. In 2013, Nike went on to sell the company to Apax Partners, a private equity firm, for around $570 million.

In 2003, Nike acquired Converse in a notable deal valued at roughly $305 million. Converse, known for its iconic Chuck Taylor All-Star sneakers, has remained a subsidiary of Nike but operates somewhat independently, maintaining its distinct identity and products.

Nike acquired Hurley in 2002 for $95 million. The skater-surf company generated annual sales of $70 million at that time. However, in 2019 Nike sold the Hurley brand to Bluestar Alliance LLC. for an undisclosed amount.

In 2007, Nike acquired the British soccer brand Umbro for $565 million. This strategic takeover aimed to strengthen Nike’s position in the market and expand its presence in the football (soccer) apparel and equipment industry. In 2012, Nike suffered a significant financial loss when it sold Umbro to Iconix Brand Group, Inc. for $225 million.

As of December 2023, Nike’s portfolio comprised two other prominent, standalone brands, Converse and Jordan. The brands acquired during Nike’s early years were divested, to focus more directly on its core athletic footwear and apparel businesses.

Elevating Nike Through the Influence of Athletes and Celebrities

Nike’s connection with athletes began at its grassroots, with Phil Knight selling shoes to athletes directly on track fields in 1963.

Facing limitations in scalability with his car trunk selling strategy, Knight turned to Bill Bowerman. At that time, Bowerman stood as one of America’s most renowned coaches, having trained numerous Olympic athletes such as:

• Jim Bailey
• Bill Dellinger
• Harry Jerome
• Kenny Moore
• Steve Prefontaine

As Nike expanded, it recognized athletes’ significant sway over fans and culture. Temple University experts highlighted that Michael Jordan’s five-year, $2.5 million deal with Nike in 1984, reshaped the landscape of how brands engaged individual athletes and celebrities in shoe endorsements.

Below, you’ll find a list of the most sought-after Nike sponsors, along with their estimated values:

In 2022, Nike anticipated its endorsement contract obligations to reach approximately $1.5 billion from 2021 to 2026.

Nike Sneaker Resale Market

Nike’s strategic approach to product releases, collaborations, and maintaining brand relevance has cemented its dominant position in the sneaker resale market, making its sneakers highly sought-after commodities among collectors and enthusiasts worldwide.

With footwear sales totaling $29 billion in 2022, and an additional $2 billion from Converse, Nike undeniably leads the global sneaker market. This dominant position, coupled with Nike’s iconic releases and unparalleled brand recognition, explains its resounding success in the resale market.

According to sneaker resale geek Zach Berkowitz, “Nike is dominating the market due to its long history in the sneaker industry.” Furthermore, the iconic partnerships with Michael Jordan began sneaker culture and elevated Nike’s status to unparalleled heights.

In 2023, The NIKE SB Dunk Low Paris Bernard Buffet, listed at $90,000, stood out as the most expensive shoe on the resale market. From Sotheby’s top 7 most expensive sneakers list, six were Nike resale shoes, highlighting the brand’s dominance in the high-end sneaker resale market.

The History of Nike’s Challenges and Controversies

In Nike’s early days, American banks were skeptical about loaning money due to their doubts about sneakers being valuable collateral, as mentioned in an interview with Phil Knight.

This led Nike to seek alternative financing from Nissho Iwai Corporation, a Japanese trading company with more flexible lending practices. Despite higher interest rates, this unconventional support enabled Nike to overcome traditional banking hurdles and kickstart its rapid growth.

Nike faced criticism for its labor practices in overseas factories, particularly in the 1990s. Several reports emerged on poor working conditions, low wages, and allegations of child labor in factories producing Nike products.

For example, in 1996, Life Magazine published an article titled “Six Cents an Hour” highlighting child labor in Pakistan. It featured an image of a 12-year-old boy stitching pieces into Nike soccer balls.

In 1998, Nike CEO Phil Knight addressed labor concerns in overseas factories at the National Press Club in Washington DC. He pledged changes such as raising the minimum age for footwear factory workers and enhancing monitoring and compliance with labor standards.

The 2001 “Still Waiting For Nike To Do It” report by Tim Conner highlighted ongoing challenges, casting doubt on whether Nike would indeed “Just Do It.” It questioned if the company would fulfill its pledges amidst the persistent issues faced by its employees, creating a discrepancy between Nike’s promises and the reality experienced by workers.

Additionally, Nike has been under scrutiny for its environmental practices, including issues related to the use of toxic chemicals in manufacturing and the environmental impact of its products. Greenpeace’s 2011 “Dirty Laundry” report accused Nike of being linked to Chinese factories that discharged hazardous chemicals into rivers, contributing to water pollution.

After years of controversies, Nike has reaffirmed its commitment to sustainability and social responsibility efforts. An example of this commitment is Nike’s Move to Zero initiative, aiming for zero carbon and zero waste, showcasing the brand’s dedication to reducing its environmental footprint and promoting a more sustainable future in the apparel industry.

Who Owns Nike?

Nike’s co-founder Phil Knight, along with his son Travis Knight own the majority (97%) of Class A Nike stock, either directly or through trusts and other companies like Swoosh LLC. Class A stocks give the power of board appointments and aren’t available on the open market, whereas Class B stocks are ownable and tradeable.

Nike had its IPO on December 2, 1980, offering its shares at $22 each and was listed on NASDAQ. According to Nike’s fiscal 1981 report, by year-end, the company had approximately 2,500 shareholders.

In June 2016 following 52 years at Nike, Phil Knight retired as chairman. The board designated Knight as Chairman Emeritus, extending a standing invitation for him to attend Nike Board meetings as an observer and offer his expertise and time for the company’s progression.

Knight expressed his commitment by stating:

I intend to continue to work to promote the company’s business in my new role for as long as I can contribute to NIKE’s success and long-term growth.

After Phil Knight’s retirement, Mark Parker assumed the chairman role. He joined the company in 1987 and became CEO in 2006.

Parker managed both positions until early 2020 when John Donahoe took over as CEO, enabling Parker to concentrate solely on the chairman role. As of December 2023, John Donahoe continues to serve as Nike’s CEO.

Nike shares are still traded on the NASDAQ and are available for purchase.

The History of the Nike Logo

The world-recognized Nike “Swoosh” logo was created in 1971 by Carolyn Davidson, a graphic design student from Portland State University. Davidson was approached by Phil Knight to design a logo that conveyed motion and speed.

Carolyn Davidson spent around 17.5 hours designing Nike’s famous Swoosh logo and was paid $35. In 1983, as a gesture of gratitude, she received a gold ring resembling the Swoosh, along with a diamond, and was given several hundred shares of Nike stock.

Initially, Knight wasn’t particularly taken with the logo. As reported by Oregon Live, his reaction was:

Well, I don’t love it, but perhaps it’ll grow on me

Over time, the Nike logo underwent minor modifications in font styles and proportions. The font for the brand name shifted from a serif typeface to a bolder, sleeker sans-serif font, enhancing legibility and modernizing the overall look.

The Swoosh remained unchanged, symbolizing Nike’s commitment to innovation and athleticism while the typography modifications aimed to refine the logo’s visual impact and adapt it to changing design trends.

In 1995, Nike removed the wordmark “Nike” from its logo, leaving only the iconic Swoosh symbol as the primary representation of the brand. This streamlined approach underscored the Swoosh’s significance, allowing it to stand alone as a powerful and instantly recognizable emblem of Nike.

The Iconic “Just Do It” Slogan

Nike launched the JUST DO IT campaign in 1988. The tagline achieved immediate popularity, quickly establishing itself as a fundamental element of Nike’s brand identity.

The debut of the “Just Do It” slogan was marked by Nike’s first major television campaign, featuring Walt Stack, an 80-year-old marathon runner, embodying the campaign’s motivational spirit.

In the mid 80s, Americans were obsessed with fitness and purchasing exercise gear. Nike capitalized on the public’s aspiration for a healthier way of living by presenting it through the “Just Do It” campaign.

In the following years, multiple campaigns and collaborations have reinforced the “Just Do It” ethos, aligning with Nike’s commitment to motivation, determination, and athletic achievement.

Michael Jordan’s 1993 “Just Do It” brand ad showcased his basketball skills and work ethic, promoting determination and hard work as keys to success. It helped solidify Jordan’s global icon status and Nike’s dominance in sports apparel.

Meanwhile, LeBron James’ 2018 “I Believe” ad for Nike’s “Just Do It” campaign celebrated his journey from Akron to NBA stardom, inspiring viewers to pursue their dreams relentlessly through hard work and self-belief.

The Future of Nike

As Nike’s journey through history unfolds, its evolution stands as a testament to innovation, cultural impact, and athletic excellence. From humble beginnings to global dominance, Nike’s legacy embodies a fusion of sport, style, and innovation, shaping not just the athletic world but also fashion, pop culture, and beyond.

With commitments to sustainability, technological advancements, and ongoing collaborations, Nike is set to further redefine the boundaries of athletic performance and lifestyle. As it navigates the ever-changing landscape of consumer needs and societal expectations, Nike remains at the forefront, ready to write the next chapter in its storied history, inspiring athletes and sneaker enthusiasts worldwide.

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