Nike’s recently released annual report for the fiscal year ended May 30 details its production presence overseas, as well as imports and trade relations with China. It says that the company sourced 37 percent of its footwear from factories in Vietnam and only 34 percent from facilities in China. Indonesia (23 percent), Thailand (2 percent) and India (1 percent) round out the list, though Nike also has contracts with independent factories in Argentina, Brazil, India and Mexico to make footwear that it sells mostly in those countries.
When it comes to apparel, Nike sources in 33 countries, but most of its clothes come from China, Thailand, Indonesia, Malaysia, Vietnam, Sri Lanka, Turkey, Cambodia, El Salvador, Mexico and Taiwan.
In South America, the company has received mixed decisions on anti-dumping investigations against footwear made in China. Argentina decided against imposing anti-dumping duties, but Brazil’s government has imposed the tariffs on all footwear imported from China. Nike said this decision will affect all brands in the footwear industry, but should not impact its business materially.
And in Turkey, three-year duties implemented in 2006 to safeguard the local shoemaking industry have been extended until August 2012, though at a lower rate per pair ($1.60 versus $3). Nike says that the decision there has spurred Vietnam and Indonesia to discuss compensation that may involve trade concessions on other products or duty exclusion on certain categories of footwear.
Nike spent $2,356.4 million on advertising and promotions for the fiscal year, about flat from 2009 but a 2.1 percent uptick from the 2008 figure.
The annual report al reveals that as of May 31, Nike had 34,400 employees. There were343 stores outside the U.S. including 205 factory stores, two Niketowns, 68 Cole Haan shops and one Hurley store. In the U.S. the total was 346, with 145 Nike factory, 51 Converse factory and 18 Hurley stores. Inventories at the end of the year were down by 13.4 percent to $2,040.8 million. The decreases were 21 percent in Western Europe, 19.5 percent in Japan and 11.7 percent in North America. Nike did not have any customers that made up more than 10 percent of total business.
