How Does Nike Change From "One Idea" To "No.1 In The World" In The Face Of Cash Crisis And Bankruptcy

No company is immune to the new crown epidemic, even Nike, the world's largest sports brand.

On June 26 local time, Nike released its fourth quarter 2020 results (Nike's fourth quarter refers to March 1 to May 31). The report showed a net loss of $790 million, or more than RMB5 billion, compared with a net profit of $989 million in the same period last year.

It also made Nike press the layoff button.

"We are not sure how many jobs John Nike will be affected by the layoffs."

According to CNBC, the results are very rare for Nike, which has missed its profit forecast only twice in the past eight years.

In the past 58 years, Nike has completed the biggest historical counter attack from 0 to 1 and from 1 to the world.

This is Phil Knight's Autobiography of the dog. After going through "betrayal" and "going public" for two times, the company has been divided into two parts, namely, how to solve the problem of "betrayal" and "Nike".

The first part: 1962-1975. Long distance runner knight with his crazy idea - selling shoes - Ghost tomb tiger's shoes, began to travel around the world. Then there was the exploration from 0 to 1, from selling the first pair of shoes, from the western part of the United States to the East, having the first partner and staff, expanding the office space, to the cash flow crisis, and to splitting with the "ghost mound tiger" family. Finally, Nike was "forced" to be born.

The second part: 1975-1980. Nike was launched as a brand, and then Nike Co., Ltd. was officially established. After launching the landmark product of "air cushion shoes", it became the first American shoe manufacturer in mainland China. In 1980, it was successfully listed at $22 per share.

1962-1975

From nothing to nothing

A crazy idea

In 1962, after graduating from University at the age of 24, Phil Knight did not find a stable job. Instead, he embarked on a "purposeful" round the world trip. In the process of traveling, he firmly believed that he would go to Japan, do business with them, and do shoes business.

After that, he set up a marketing agency in the west of the U.S. for 2 hours, and took the right to work for the company. During this period, Knight went through a long wait for nearly a year, in which he had to work as an accountant to make a living.

Finally, in 1964, his first batch of ghost grave tigers arrived. He gave his shoes to his college track and Field Coach Bill Bowman, who also became Knight's partner after seeing the shoes. In the development since then, Bowman has also been a product consultant to knight a lot of advice on shoe improvement, and has become a very important person in his whole career.

Blue belt company on the east coast of the United States

Don't tell people how to do something, tell them what they need to do, and let them create surprises. This is knight's management attitude towards his first real full-time employee, who will also become an indispensable part of Nike in the future: Jeff Johnson.

In 1966, Knight's blue belt company sold 3250 pairs of shoes and opened its first retail store. At the same time, it also ushered in the first severe test - competition and threat from the east coast of the United States.

In 1967, Knight finally convinced guizuka tiger that it was capable of distributing business across the United States, and finally opened blue belt company to Boston, the east coast of the United States. Johnson is in charge of the blue bank business.

Throughout the history of the cooperation between Johnson and knight, it has experienced the determination and all-out efforts of the core figures for the company. Of course, there is no lack of "mutiny" and "reconciliation", but none of this has affected Johnson to regard the blue ribbon as his must do.

No bankruptcy, just no money

The development of blue belt company is a leap forward, and the sales volume is also growing exponentially. From 1969 to 1969, they need more than $150000 in turnover. At the same time, knight is about to have his first child this year, and he needs a bigger house. So, put all this together, knight has to face the "cash" problem.

He said to himself: life is growth, not growing is death.

But at this time, the blue belt was not only "abandoned" by his guarantee bank, but also failed in an initial public offering to raise funds for a month without response. The agent is looking for a new agent to break the agreement.

As a result, the blue belt sports company, which went from penniless to $1.3 million in sales in 1971, is on the verge of extinction.

Instead of ghost grave tiger, Nike is born

The untrustworthy ghost mound tiger, let Knight know that the blue belt will one day break up with it. Rather than this, it is better to take a step first and look for a source of goods that can replace the ghost tomb tiger without violating the agreement.

"It's like a whoosh in the air."

In 1971, Knight made it clear that this unique and novel logo was his company's logo. After that, after discussion, argument, discussion and dispute, n-i-k-e was born. Ironically, the name was born in Johnson's dream.

'I like the name of Nike and the goddess of victory. What's more important than victory? As Churchill said, "you ask, what's our purpose? I can answer' victory 'in one word.'

In 1972, Nike made its first appearance in the "American sporting goods joint exhibition", a well-known exhibition in the American sporting goods industry, and won a series of orders in one fell swoop. This is also the first time that blue belt sports placed an order with "Nike" instead of "ghost grave tiger"; it made its first appearance in the Olympic Games; and it was the first time it had a star endorsement.

Finally, with the ghost grave tiger completely tear face, is about to go to court.

Run or die

By the end of 1972, Knight's sales had been reversed to $480, 000 by the end of 1972.

Along the way, Knight created the so-called "plan for the future" cooperation mode, launched one after another best-selling shoes, and finally ushered in a lawsuit with ghost mound tiger.

After repeated court sessions, recess and evidence collection, the blue belt won the lawsuit. It was July 4, 1974, when guizuka tiger signed a losing lawsuit, and the story between blue belt sports company and ghost tomb tiger came to an end.

But Knight didn't immerse himself in this victory for a long time. The change of economic situation and the continuous development of the market made him nervous.

So, about two weeks later, Knight started planning a secret factory

1975-1980

Never stop

Again rejected by the bank

In 1975, Knight still faced a huge cash problem. At the same time, their bank accounts were not only empty, but also in danger of overdraft. At this time, they were once again "kicked out" by the bank, which decided to freeze their accounts and no longer cooperate with the blue belt.

What's more, it will be investigated by the FBI for cash problems. In the meantime, Knight kept asking himself, "will I go to jail?"?

Of course not!

Iwai, a Japanese businessman, saved them. From "knowing" the blue belt, it gave them enough financial support. The first contact between Iwai and knight was in 1970, when the blue belt needed cash for the first time. In 1971, the blue belt became its second loan provider when it was rejected by the first national bank because it broke up with guizuka tiger.

Blue belt "disappeared" and "Nike" established

1976 was a very rich year.

We don't think it's appropriate for knight to think about this after going public for the first time. In fact, we knew it was in 1980.

That year, there was another disruptive company, apple.

This year, the soul of knight, also his coach Bowman decided to quit, he took the initiative to sell two-thirds of his blue belt shares to Knight at a low price, and decided to go.

This year, Nike is not only a brand, but also a household word. Naturally, blue belt was merged into Nike Inc.

This year, Nike's sales have reached $14 million. At the end of the year, they still thought they would not go public.

Never ending, listing

"It's relatively easy to win the game, but it takes more to win."

In order to defeat itself, Nike's landmark product "air cushion shoes" was put on the agenda in 1977. At the same time, they launched a new round of advertising campaign - "there is no finish line."

However, problems arise with their expectation of "air cushion shoes". At the end of 1978, the highly acclaimed tailwind running shoes (the name for air cushioned shoes) were found to have fatal defects, resulting in more than half of the shoes being thrown into the dustbin.

In the same year, Nike received a $25 million malicious tax bill from its competitors. After nearly two years of negotiations, the "cold war" ended with $9 million.

During the cold war, Nike figured out one thing: go public.

After becoming the first American shoe maker to do business in mainland China, Knight launched his grand roadshow in the United States.

On December 2, 1980, Nike was officially listed at $22 per share. Knight, a 46% shareholder, was worth $178 million.

Forty years later, Knight stepped down as chief executive of Nike. At that time, Nike's sales were $16 billion, while ADI was $10 billion; it had 5000 stores and 10000 employees worldwide.

"Those who break the stereotype will always be respected." this is the motto that knight believed in all his life.