Well yeah, Nike sent manufacturing to China and made domestic manufacturing impossible to compete in comparison. Then everyone else did the same and/or went out of business.
I am currently watching the series "Winning Time" about how the LA Lakers Showtime era started and shoe deals were a topic in the most current episode. There is a scene where Phil Knight approaches Magic Johnson with a somewhat alternative strategy trying to sign him because they could not compete with Adidas, Converse, etc. money-wise. So you guys have very good timing with this video release :D.
Well, this was honestly unfortunate when you don't look at it from Nike's point of view. If sweatshops are bad now, they were much, much worse in the 70s, 80s, 90s. Not only was Nike allowed to continue doing this, but domestic industries were also killed and it helped turn Nike/Adidas into duopolies.
I wouldn't call it a duopoly, there are many other companies in the sports market. Adidas isn't even the largest company in Herzogenaurach, Schäffler is.
I believe production abroad was inevitable. Surely Nike may made the change faster, but eventually, those competitors would have been doing the same to cut costs.
I dont think anyone that writes down "sweatshop" has ever stepped foot inside an assembly line. Workers inside an industrialized country like China can very much choose to work or not work for an employer, the idea that workers have no agency and are acting as modern slaves is one of the most racist things i see online on a daily basis.
It's the job of the government to have proper labor laws and ensure the well-being of people (including laborers) in their country. This includes time limits on how long at a time and in a week people are allowed to work, a certain minimum wage, proper laws for how to handle sick days and holidays, and so on. If your country's laws are shít then of course companies will exploit them. Also, as stated by others, there are several more major sportswear companies other than Nike and Adidas. You really need to educate yourself.
I'm reading the book 1972 by Nike employee Steve Bence who was working in both the US and overseas factories. From this book it sounds like US workers were down on these kinds of shoe factory jobs around that time.
In my opinion this video too positive about this whole affair. At 6:45 it says that Nike's competitors manipulated the law, while they just used it to it's intended purpose. I see Nike's solution as one example of tricks companies use to avoid paying taxes. Undoubtedly a clever one and one could argue that the law itself was outdated, but that's not the point.
You're completely right. The law was there not to prevent new companies from sprouting, but to give a leveled playing field for companies who decided to keep jobs in domestic vs the one who choose to outsource labour. It was scary when they portrayed lobbying in Washington as a good thing too. The fact that everyone in the comments is praising Nike reminds me of the words from my politics teacher back in highschool "People are like chickens, they swallow everything whole."
Don't forget the fact that the law seemed to have been forgotten by the 70's, so call it it up was kinda of disingenuous move, especially because most branches of the economy were also applying tarrifs on production cost, not on domestic pricing (which then can be used to keep out any foreign competition out of the market).
Except the law is stupid and protectionist and would just lead to higher prices for consumer. That the US government didn't even notice it until the competitors pointed it out to them shows how much they cared about it.
2 min in. I do not have post notifications on, but UA-cam seems to know what i like, so i got notified anyway🙌🏼🙌🏼 thank you youtube and athletic interest
So I get it, this channel is about sportbusiness, so ofc this story has positive, respectful vibes and kind of bows down to nike's cleverness. And I'm not saying that the bill was appropriate in its form neither do I hate globalization (and the benefits that privilege most of us). But it sounds like this was like the pistol shot for turning global marketing to its current state. Like price dumping on cost of other humans and the environment, without any regulation in any form by the state(even worse, because politics is more dependent on market than vice versa). Maybe I'm interpretaining too much in this vid. Good for Nike.
I'm also quite staunch on the environment and human rights, but are you buying goods made in the US? even Apple products are not spared from this issue. our foods are sprayed with pesticides, are you eating organic? we are too used to buying the cheapest goods. I'm also in the wrong too
@@AthleticInterest plenty perspectives, but only one narrative on the video it's indeed a story but not an honest one, and praising somebody for cheating is the least sportsmanship you can ever do.
pulling an outdated law with the sole purpose to taking out your competitor, so you can maintain your hold on the market and deprive consumers of a great product with an innovative design isn't sportmen like either
Just a small note, loved the video, but Bata was Czech, then Canadian postwar, it's now multinational with offices in Singapore, Nairobi, New Delhi and Santiago. I get it's for the Rubber Association, which was a US based organization though I but it's like associations based in the EU, it's usually because of a singular economic zone with Canada, USA and Mexico. :)
It’s an interesting story and clever from Nike, but a massive company working around the law to avoid tax and keep exploitative manufacturing processes isn’t a good thing…
@@supreme_zeeyus Nike winning this case set the stage for sweatshop labor and cheap job outsourcing to power their business for decades to come... Def not morally wrong
So much morally was done wrong though. With American globalism in China it made them depressed and lose their identity. The working conditions in those factories are terrible. Eg all the apple workers nicking it working at factories in China
@@nedma2445 As a result of this sweatshop labour, the poorer countries become richer leading to the explosion in their middle class. I reckon this practice is morally justified.
@@WorldsBestHuman Meanwhile, China uses slave labor from ethnic Uyghurs and other minorities. Oops sorry I meant "vocational training centers" where they get "free training", not concentration camps and forced-labor.
I'm a runner - I wouldn't touch any of the mega brands - they just aren't good running shoes but they have great commercials and branding. Brooks or Saucony for me.
Finally this channel is getting the subs it deserves. Been here since there were 80k subs and I knew this channel would surely reach 1M. Keep going guys :)
I learnt about this from Phil night biography of Nike shoe dog it’s a brilliant book about how he started out of his car selling Japanese tigers to making his nikes and the 25 mil the Congress wanted him to pay
Hey athletic interest i would like to talk about the academy in Portugal and how the clubs make incredible players but cant really compite in european competicions cheers!
Nike has always been a trailblazer in the athletic wear industry, from setting a template for manufacturing to disrupting the advertisement industry. Nike was one of the earliest brands to go east and mass produce in cheap and use guerrilla marketing to sell them.
I am not a fan of Nike. But gotta recognize they have a big brain marketing team. Nike, McDonald's and Coca Cola are just the biggest marketing genious for me. I am not a fan of Nike products as I think some of them are low quality. Football jerseys for instance are a joke. I once had a Brazil kit, the textile is just... I think Adidas make much better quality kits, I got 5 or 6 Flamengo and Manchester United kits and they are really nice. Aaand to me, Nike sometimes plays dirty with their marketing and commercial strategies. Like being ruthless to make a profit. I don't know. Just not a company that I admire.
and a rotter society is the result. I dont mean the people living in the US. Just the whole survival of the fittest kind of attitude is what saddens me.
What's your definition of making or assembling? Was the rubber American? Was it grown in America? Already back then this point was moot in determining product origin...
And I thought the quality of nike shoes had only been going down in the past few year , I didn't realise that they actually invented it ! Well done to all the kids in china making these shoes . great vid thanks for sharing
Nice video, got to know a few new things. Pl make a video about IPL (India Premier League). About business strategies and how it became a billion dollars League by dominating International cricket. It'll be a good case study.
Nike, WWF,NFL and many other companies took lots of wealth from the many to give to a few. All those businesses were being done in each state making everyone wealthy but now it’s controlled by a few people. Pepsi, Tyson Co, Johnson and Johnson. People are working hard to make nothing but bills?
If the tariff is 20% on the shoes Nike imported, wouldn't they have to pay 20% of the price of an American made shoe--20% * $17 = $3.4--rather than 50% of the American made shoe, as stated in the video at 3:50?
I wonder what kind of landscape we would have today if that law wouldn't have been circumvented by Nike and laid the grounds for outsourced cheap labour in Asia.
What incredibly insane law ASP was. You are better at making bussiness than your competitors? Sorry you cant do that here. Instead of pulling everyone else up they made law that pull others down. And in the end Nike just proved how dumb this law was.
Who or what decide the 20% or 50%? It doesn’t make sense… If they are paying a 20% tariff on their cost to produce; surely the law would make it 20% of the cost to produce the more expensive 🇺🇸US comparative shoe, not change the tariff completely… this doesn’t add up or make sense
@@AthleticInterest always those genius that we helped leave for ‘a new found land’ never disappoint :) thanks for responding. Makes you feel part of the channel; which is awesome. The channel and the message that is.
There's nothing more baller than buying your bankrupt competitor that tried to bully you in the past😂😂
Can't be a bad feeling 😄
I'll never buy Nike again. Commie slave owners
literally owned them
BuLLy
Well yeah, Nike sent manufacturing to China and made domestic manufacturing impossible to compete in comparison. Then everyone else did the same and/or went out of business.
I am currently watching the series "Winning Time" about how the LA Lakers Showtime era started and shoe deals were a topic in the most current episode. There is a scene where Phil Knight approaches Magic Johnson with a somewhat alternative strategy trying to sign him because they could not compete with Adidas, Converse, etc. money-wise. So you guys have very good timing with this video release :D.
Ideal! 😁
@@AthleticInterest 🥳🙁
Well, this was honestly unfortunate when you don't look at it from Nike's point of view. If sweatshops are bad now, they were much, much worse in the 70s, 80s, 90s. Not only was Nike allowed to continue doing this, but domestic industries were also killed and it helped turn Nike/Adidas into duopolies.
I wouldn't call it a duopoly, there are many other companies in the sports market. Adidas isn't even the largest company in Herzogenaurach, Schäffler is.
I believe production abroad was inevitable. Surely Nike may made the change faster, but eventually, those competitors would have been doing the same to cut costs.
I dont think anyone that writes down "sweatshop" has ever stepped foot inside an assembly line. Workers inside an industrialized country like China can very much choose to work or not work for an employer, the idea that workers have no agency and are acting as modern slaves is one of the most racist things i see online on a daily basis.
It's the job of the government to have proper labor laws and ensure the well-being of people (including laborers) in their country. This includes time limits on how long at a time and in a week people are allowed to work, a certain minimum wage, proper laws for how to handle sick days and holidays, and so on. If your country's laws are shít then of course companies will exploit them. Also, as stated by others, there are several more major sportswear companies other than Nike and Adidas. You really need to educate yourself.
I'm reading the book 1972 by Nike employee Steve Bence who was working in both the US and overseas factories. From this book it sounds like US workers were down on these kinds of shoe factory jobs around that time.
In my opinion this video too positive about this whole affair. At 6:45 it says that Nike's competitors manipulated the law, while they just used it to it's intended purpose. I see Nike's solution as one example of tricks companies use to avoid paying taxes. Undoubtedly a clever one and one could argue that the law itself was outdated, but that's not the point.
You're completely right. The law was there not to prevent new companies from sprouting, but to give a leveled playing field for companies who decided to keep jobs in domestic vs the one who choose to outsource labour. It was scary when they portrayed lobbying in Washington as a good thing too.
The fact that everyone in the comments is praising Nike reminds me of the words from my politics teacher back in highschool "People are like chickens, they swallow everything whole."
@@s.spambot9095 It was a good thing for Nike. It's a success in business story.
Don't forget the fact that the law seemed to have been forgotten by the 70's, so call it it up was kinda of disingenuous move, especially because most branches of the economy were also applying tarrifs on production cost, not on domestic pricing (which then can be used to keep out any foreign competition out of the market).
@@s.spambot9095 I mean... the other companies were manufacturing in Europe because it was cheaper, Nike just found an even cheaper alternative...
Except the law is stupid and protectionist and would just lead to higher prices for consumer. That the US government didn't even notice it until the competitors pointed it out to them shows how much they cared about it.
2 min in. I do not have post notifications on, but UA-cam seems to know what i like, so i got notified anyway🙌🏼🙌🏼 thank you youtube and athletic interest
Turn them on!
Good to hear 😄
Your videos are so good always look forward to them keep up the good work.
Thanks, Risto!
Another well edited and a great storyline good video so far!
The remarkable story of the One Line shoe 👏
I'll never buy Nike again. Commie slave owners
So I get it, this channel is about sportbusiness, so ofc this story has positive, respectful vibes and kind of bows down to nike's cleverness.
And I'm not saying that the bill was appropriate in its form neither do I hate globalization (and the benefits that privilege most of us).
But it sounds like this was like the pistol shot for turning global marketing to its current state.
Like price dumping on cost of other humans and the environment, without any regulation in any form by the state(even worse, because politics is more dependent on market than vice versa).
Maybe I'm interpretaining too much in this vid.
Good for Nike.
That’s not a Nike problem that’s a capitalism problem
There are plenty of perspectives on this... but it's quite a story either way.
I'm also quite staunch on the environment and human rights, but are you buying goods made in the US? even Apple products are not spared from this issue. our foods are sprayed with pesticides, are you eating organic?
we are too used to buying the cheapest goods. I'm also in the wrong too
@@AthleticInterest plenty perspectives, but only one narrative on the video it's indeed a story but not an honest one, and praising somebody for cheating is the least sportsmanship you can ever do.
pulling an outdated law with the sole purpose to taking out your competitor, so you can maintain your hold on the market and deprive consumers of a great product with an innovative design isn't sportmen like either
Just a small note, loved the video, but Bata was Czech, then Canadian postwar, it's now multinational with offices in Singapore, Nairobi, New Delhi and Santiago. I get it's for the Rubber Association, which was a US based organization though I but it's like associations based in the EU, it's usually because of a singular economic zone with Canada, USA and Mexico. :)
This was a well put together video ! Thank you Athletic Interest
Thanks, Edwin! 👟
It’s an interesting story and clever from Nike, but a massive company working around the law to avoid tax and keep exploitative manufacturing processes isn’t a good thing…
It’s nothing new under the sun, at least in this case it wasn’t morally wrong
@@supreme_zeeyus Nike winning this case set the stage for sweatshop labor and cheap job outsourcing to power their business for decades to come... Def not morally wrong
So much morally was done wrong though. With American globalism in China it made them depressed and lose their identity. The working conditions in those factories are terrible. Eg all the apple workers nicking it working at factories in China
@@nedma2445 As a result of this sweatshop labour, the poorer countries become richer leading to the explosion in their middle class. I reckon this practice is morally justified.
@@WorldsBestHuman Meanwhile, China uses slave labor from ethnic Uyghurs and other minorities. Oops sorry I meant "vocational training centers" where they get "free training", not concentration camps and forced-labor.
nike : you tried to finesse me, but i simply finesse your finnessing
Nike: Just Finesse It! ✔️ 😄
great video as always mate!!
Thank you, Nihindu!
Love this story! Thank you!
They found a solution!
Love Athletic Interest. Another exciting video.
Thanks, Jeffrey!
I'm a runner - I wouldn't touch any of the mega brands - they just aren't good running shoes but they have great commercials and branding. Brooks or Saucony for me.
I had some Saucony shoes for cross country back in high school and they were great. I heard Brooks are great my girlfriend has a pair.
New Balance ?
@@ullasbabu1732 New balance solid - depends on your foot shape, Yes I'd add them to very short list but just not for me - made me feel flat footed.
Finally this channel is getting the subs it deserves. Been here since there were 80k subs and I knew this channel would surely reach 1M. Keep going guys :)
Thank you! We will 🏃
Great story, great channel.
It's a remarkable moment in Nike's history ✔️
Bro you should make a separate series showing how to make those clean edits you do, btw you use premiere pro?
Great video/story and I'm glad to see lots of criticism for Nike doing this too!
You guys are the best!
😉
Athletic Interest uploads a new video. Grab the fritters and tea as its going to be good.
Nice video athletic Interest.
Sounds ideal 😉
Thursday is Happyday and the gift from Athletic Interest
Happy Thursday indeed! 😉
This channel grew so fast its insane.
Hopefully more to come! 😉
Great article!
Thanks, Abdul!
Lovely content as usual
Thank you! We appreciate it
I learnt about this from Phil night biography of Nike shoe dog it’s a brilliant book about how he started out of his car selling Japanese tigers to making his nikes and the 25 mil the Congress wanted him to pay
Hey athletic interest i would like to talk about the academy in Portugal and how the clubs make incredible players but cant really compite in european competicions cheers!
Short and very interesting story. Me likey
Many thanks! 🙌
Jordan's head on that body with the adidas tee 🤣😂
Nike has always been a trailblazer in the athletic wear industry, from setting a template for manufacturing to disrupting the advertisement industry.
Nike was one of the earliest brands to go east and mass produce in cheap and use guerrilla marketing to sell them.
I wouldnt call maticulously planned, billion dollar advertising campaigns guerilla marketing... Just about the opposite lol
@@andrewjensen8189 I meant what they did with the Olympics. Even though Adidas was the official sponsor, they sneaky place their products.
@@AdarshKumar-nj7rp Ads were placed around the olympics
Go East? They never made shoes in the US
@@hartiwanger9176 Is America in the Eastern hemisphere? 😂😂
Can you make a video on how Puma is dominating F1
Michael Jordan signs with Addidas.. nooOoOOOOOOO
Too weird 😅
This video shows me something that I always wanted to understand why Nike is the number one guys as always great job salute from Brazil.
Hi Lauro!
So did Nike launched "One Line" under the Nike brand or under a shell company?
A shell company because the one liner shoe was a 'competitor' shoe. Besides look at 5:18
I tried to look into this and could not find any record of a One Line LLC or DBA. This is still a mystery in the story.
It was under Nike, but it was a competing line shoe.
@@l4nd3r is this documented anywhere?
I am not a fan of Nike. But gotta recognize they have a big brain marketing team. Nike, McDonald's and Coca Cola are just the biggest marketing genious for me.
I am not a fan of Nike products as I think some of them are low quality. Football jerseys for instance are a joke. I once had a Brazil kit, the textile is just...
I think Adidas make much better quality kits, I got 5 or 6 Flamengo and Manchester United kits and they are really nice.
Aaand to me, Nike sometimes plays dirty with their marketing and commercial strategies. Like being ruthless to make a profit.
I don't know. Just not a company that I admire.
The American government is run by lobbies and their vested intrests
and a rotter society is the result. I dont mean the people living in the US. Just the whole survival of the fittest kind of attitude is what saddens me.
Did Nike actually make the shoes in the USA or did they "assemble" the shoes
What's your definition of making or assembling? Was the rubber American? Was it grown in America? Already back then this point was moot in determining product origin...
only tieing the shoes in America
I remember reading about this in Shoe Dog
Every company has their bankrupt story
Probably the most decisive moment for Nike!
Underrated comment
That is purely amazing.
Ah, thanks! Good story 👟
the track and field has an increase in spectacle is that true ?
For the first time I didn't got any notification from this beautiful channel!
I hate you UA-cam for this!😑
Glad you still made it here! 😉
And I thought the quality of nike shoes had only been going down in the past few year , I didn't realise that they actually invented it ! Well done to all the kids in china making these shoes . great vid thanks for sharing
Don't forget the ethnic Uyghur slave labor harvesting the cotton.
Converse- You ain't shit, Nike
Nike- Get in my belly
lol
That’s fucking genius
They turned the situation it its head!
Some people just uno reverse card. What a brilliant strategy!
Nice video, got to know a few new things.
Pl make a video about IPL (India Premier League). About business strategies and how it became a billion dollars League by dominating International cricket. It'll be a good case study.
Iconic ✨
This is Nike implementing the lemonade principle of effectuation, well done
🍋 --> 🍸
Who has a pair of their one line shoes?
Nike, WWF,NFL and many other companies took lots of wealth from the many to give to a few. All those businesses were being done in each state making everyone wealthy but now it’s controlled by a few people. Pepsi, Tyson Co, Johnson and Johnson. People are working hard to make nothing but bills?
Well played Nike
Faced disaster... and turned it into an opportunity! 👏
Another great history lesson.
Plenty more to come 😉
I wanna see that why Gucci loves football vid, is it coming up next?
Thank you China!
If the tariff is 20% on the shoes Nike imported, wouldn't they have to pay 20% of the price of an American made shoe--20% * $17 = $3.4--rather than 50% of the American made shoe, as stated in the video at 3:50?
Nike owns converse now
We need to drop all protectionism
This felt dodgy seeing them being able to launch a secret brand instead of lobbying to get the law changed.
What a story!!
That's a special pair of shoes! 😅
how? phil and bill wear their nike air and go flash with the money
Nothing is made in America and we wonder why our economy is so fucked lol.
I wonder what kind of landscape we would have today if that law wouldn't have been circumvented by Nike and laid the grounds for outsourced cheap labour in Asia.
"Nykey"
Another good video from ai
Appreciate that! 🙌
The very meaning of "Baller" 🔥
Oh you changed the title, hahah more clickbaity but such an interesting story 💪
Is not the shoe is the location of the manufacture
Euroleague⁉️
no wonder their is so many counterfiet in china
Religiously watch your videos! Now I don't even care about the content anymore haha
😄 Thanks... we think!
Waw two videos in one week
What incredibly insane law ASP was. You are better at making bussiness than your competitors? Sorry you cant do that here. Instead of pulling everyone else up they made law that pull others down. And in the end Nike just proved how dumb this law was.
By better you mean sweatshops
Thanks to them we can actually buy 100$ Sneakers that were produced by Chinese childs and robots for 15$ .
Thank you Nike .
Also we need to get rid of all tariffs, government protecting consumers from low prices
👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏
10 interesting facts about Nike - ua-cam.com/video/6Zm1JQyNbBo/v-deo.html
one more"Just too big to fall" example...
please lets all play by rules and pay taxes
sorry in advance if this is sorrow
Is it Nike or nikey???
Fook Nike. Never liked them anyway
''high quality'' sportswear
Who or what decide the 20% or 50%? It doesn’t make sense…
If they are paying a 20% tariff on their cost to produce; surely the law would make it 20% of the cost to produce the more expensive 🇺🇸US comparative shoe, not change the tariff completely… this doesn’t add up or make sense
That was US customs / the legislator. You are right, the law doesn't make any sense but it was the law at the time...
@@AthleticInterest always those genius that we helped leave for ‘a new found land’ never disappoint :)
thanks for responding. Makes you feel part of the channel; which is awesome. The channel and the message that is.
Uau 👏🏻👏🏻
You don’t take down German companies by bureaucracy cuz German companies are the bureaucracy.
Nike survived bc of slave labour. That’s refreshing
My favourite channel uploaded
Me: 💦
Ok
Number 1
almost on time
I have never been first. I have peaked in my life’s goals. Pretty sure it’s all downhill from here.
@@BigManOnCampus2326 u weren't 1st tho keep trying
✔️ Whoosh! 😉
Bruuuuuuuuuuuuuuuuuuuhhhh!!!!!
Nike made mortal "ur mama"
Cool
😎
the language used in this video is very disappointing considering the terrible effect on the climate and worker's rights that this caused
Eighteen(18) hours ago.
Not too bad 😉
Spoiler: They rigged the ASP price with complex export arrangement
early
We need to drop all protectionism