Knight started his own athletic shoe distribution company in 1964. Using his Plymouth Reliant as a warehouse, he began importing and distributing track shoes from Onitsuka Company, ltd, a Japanese manufacturer.
Knight sent several pairs as a sample to Bowerman. Bowerman was pleased with samples and made Knight a proposal he could not refuse.
In 1964, the men formed Blue Ribbon Sports, the precursor to Nike, by shaking hands and each committing to proffer $500 in start-up capitals. Blue Ribbon Sports was founded in Eugene, Oregon USA, as a distributor for running shoes produced by Japan.
However, Onitsuka saw the huge potential of the American shoe market and dropped Knight’s relatively small company in favor of larger, more experienced distributors.
In around 1970-71 Bowerman developed a lightweight, gridlike sole after testing out liquid polyurethane in his wife’s waffle iron and this eventually led to the launch of the Waffle trainer in 1974, the company’s first national best seller.
They went on together to start the Nike Corporation in 1972. Nike became Nike legally in 1978. By 1980 Nike had reached a 50 percent market share in the United States athletic shoe market.
By the end of 1980, Nike completed its IPO and became a publicly traded company.
Nike does not own a single shoe or apparel factory. Instead, the firm contracts the production of its products to independently owned manufactures.
Today, practically all Nike subcontracted factories are in countries such as Indonesia, Vietnam, China, and Thailand.
History of Nike Inc.
