Analysis of 5 key suppliers (NKE)

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Nike (NKE) is the world’s largest seller of athletic footwear and apparel. Its business is centered on product design and development, marketing and sales. The main product categories are running, basketball, Jordan brand, football, training and sportswear. Nike has 1,100 retail stores in the United States and around the world and employs approximately 75,400 people worldwide. For fiscal year 2020, it reported revenue of $37.4 billion.

Nike is supplied by 122 shoe factories located in 12 countries. For fiscal year 2020, contract factories in Vietnam, Indonesia and China manufactured approximately 50%, 24% and 22% of total Nike brand footwear, respectively. The company also contracts with 329 apparel manufacturers operating in 38 countries. China is its biggest source of clothing with 28%, followed by Vietnam with 23% and Thailand with 12%.

Nike also relies on technology companies, equipment vendors, professional services firms and other vendors to conduct its business. Here are a handful of key Nike suppliers operating in countries around the world.

Key points to remember

  • Nike is the largest seller of athletic apparel and footwear, generating nearly $37.5 billion in sales.
  • Most of its products come from China, Vietnam, Indonesia and Thailand.
  • The main suppliers are Pou Chen, PT Pan Brothers, Fulgent Sun International, Delta Galil and Eagle Nice.
  • These top suppliers also do business with other footwear and apparel brands such as Adidas, Under Armour, and The North Face.

1. Pou Chen Company

Pou Chen Corporation is the largest manufacturer of branded sports and leisure shoes in the world. Its clients include Nike, Adidas, Asics, New Balance and Timberland. It manufactures more than 300 million pairs of shoes annually and accounts for approximately 20% of the global wholesale value of branded athletic and leisure footwear.

Pou Chen was founded in Taiwan. It has factories in China, Indonesia, Vietnam, Bangladesh, Cambodia and Myanmar. In addition to producing shoes, the company sells sportswear under its own YYSports brand in China, Hong Kong and Taiwan.

2. PT Pan Brothers

PT Pan Brothers is a clothing manufacturer with a customer list that, in addition to Nike, includes major brands such as Uniqlo, The North Face, Adidas, Hunter, Lacoste, H&M, J. Crew, LL Bean, Geox, Ralph Lauren, Armani, Prada and Columbia.

The company manufactures jackets, pants, shorts, casual pants, dress shirts, snowboard and ski wear, polo shirts, golf shirts, tracksuits, tracksuits and other athletic apparel. fall and winter in its factories across Indonesia. The company sells to Nike through its subsidiary PT Prima Sejati Sejahtera.

3. Fulgent Sun Group

Fulgent Sun Group is a Taiwan-based sports and outdoor footwear manufacturer. The company manufactures shoes in Vietnam, Cambodia and China. In addition to supplying Nike, Fulgent Sun is a contract manufacturer for other major brands such as Columbia, The North Face, Timberland, Toms and Under Armor (UA). Fulgent Sun has been supplying Nike since 2009.

4. Delta Galil Industries

Delta Galil Industries (DELTY) is an Israeli private label clothing manufacturer with factories throughout Southeast Asia. The company produces underwear, socks and activewear for global brands such as Nike, Victoria’s Secret, Calvin Klein, Maidenform, Tommy Hilfiger, Lulu Lemon and Under Armour. Delta Galil also manufactures private label products for Walmart (WMT), Target (TGT), Marks & Spencer and Amazon (AMZN). Delta Galil manufactures a variety of apparel products for Nike. It operates with Nike a strategic development center for socks in the United States

5. Aigle Nice International Holdings

Eagle Nice International Holdings is a manufacturer of down jackets, sweaters, athletic pants and other sportswear. The company is based in Hong Kong and manufactures garments primarily in China, as well as Vietnam and Indonesia. In addition to Nike, Eagle Nice manufactures products for brands such as Puma and North Face for the Asia-Pacific market. The company had revenue of HK$2.7 billion in 2019, or US$348 million. He does not provide figures detailing his activity with Nike.

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