The Global Strategy Behind Nike's $21.6 Billion US Market and Asian Manufacturing Network

Key Insights About Nike's US Sales and Global Manufacturing

Nike generated approximately $21.6 billion in revenue from the United States market in fiscal year 2024, representing about 42% of its global revenue of $51.36 billion.
Over 94% of Nike shoes are manufactured in just three Asian countries - Vietnam (36%), China (36%), and Indonesia (22%), with minimal production in the United States.
Nike operates through over 530 contract factories across 40+ countries, employing more than 1 million workers worldwide while maintaining design and innovation operations in the US.

Nike's Financial Performance in the United States

As the world's largest supplier of athletic shoes and apparel, Nike maintains a dominant position in the American market. For the fiscal year ending May 31, 2024, Nike's revenue in the United States totaled approximately $21.6 billion. This represents a significant portion (about 42%) of the company's global revenue, which reached around $51.36 billion during the same period.

US Market Retail Strategy

Nike's strong performance in the US market is supported by a robust retail strategy that includes:

369 retail locations across the United States
Significant e-commerce presence, with American visitors accounting for nearly 37% of traffic to Nike's official website
Strategic partnerships with major retailers and department stores
Direct-to-consumer focus through Nike stores, factory outlets, and digital platforms

Recent Sales Trends in North America

It's worth noting that Nike has recently experienced some challenges in the North American market. In the third quarter of fiscal 2025, sales in North America fell by 4% to $4.86 billion compared to the same period the previous year. This decline is part of a broader trend that has seen Nike's global revenue decrease by 9% during this period.

Product Category Breakdown

Nike's US sales are predominantly driven by its footwear segment, which consistently generates the largest portion of revenue. Apparel and equipment make up the remainder of sales, with accessories and Nike-owned brands like Converse contributing additional revenue streams.

Global Manufacturing Network: Where Nike Products Are Made

While Nike is headquartered in Beaverton, Oregon, and design and innovation take place primarily in the United States, the vast majority of Nike products are manufactured overseas through a global network of contract factories.

Primary Manufacturing Countries

Nike's production is predominantly concentrated in three Asian countries:

Country	Percentage of Nike Production	Primary Product Types	Manufacturing Advantages
Vietnam	36%	Footwear, Apparel	Lower labor costs, established manufacturing infrastructure
China	36%	Footwear, Apparel, Equipment	Advanced manufacturing capabilities, supply chain efficiency
Indonesia	22%	Footwear, Apparel	Cost-effective production, skilled labor force
Thailand	6%	Specialized Footwear, Equipment	Specialized manufacturing capabilities

Together, these four countries account for approximately 100% of Nike's footwear production, with Vietnam and China being the largest producers at 36% each.

Nike's Global Manufacturing Ecosystem

Nike's manufacturing strategy is built on a complex global supply chain:

Over 530 contract factories across more than 40 countries
More than 1 million workers employed in manufacturing Nike products worldwide
Materials sourced globally, with specific components coming from specialized suppliers
Limited US-based production, primarily for specialized products or rapid prototyping

Strategic Rationale for Overseas Manufacturing

Nike utilizes this global manufacturing network for several strategic reasons:

Cost Efficiency: Lower labor and production costs in Southeast Asian countries
Manufacturing Expertise: Established footwear and apparel production capabilities in these regions
Scalability: Ability to rapidly scale production to meet global demand
Supply Chain Optimization: Strategic positioning near material suppliers and shipping routes
Risk Diversification: Spreading production across multiple countries mitigates regional disruptions

Visualizing Nike's Global Manufacturing Strategy

mindmap root["Nike's Global Manufacturing Network"] id1["Design & Innovation (USA)"] id1-1["Product Development"] id1-2["Research & Testing"] id1-3["Technology Integration"] id2["Primary Manufacturing (Asia)"] id2-1["Vietnam (36%)"] id2-1-1["Footwear Focus"] id2-1-2["Athletic Apparel"] id2-2["China (36%)"] id2-2-1["Technical Products"] id2-2-2["Advanced Manufacturing"] id2-3["Indonesia (22%)"] id2-3-1["Mass Production"] id2-3-2["Cost Efficiency"] id3["Material Sourcing (Global)"] id3-1["Synthetic Materials"] id3-2["Natural Materials"] id3-3["Sustainable Sourcing"] id4["Distribution Centers"] id4-1["Regional Hubs"] id4-2["Market-Specific"]

Inside Nike's Manufacturing Process

Understanding how Nike products are made provides insight into the company's global supply chain strategy and production methods.

This video explores how Vietnam became Nike's top footwear supplier over the past 25 years, transforming the local economy, creating hundreds of thousands of jobs, and helping redefine global footwear manufacturing. Vietnam's emergence as Nike's manufacturing hub demonstrates the company's strategic approach to establishing production centers in regions that offer cost efficiency, skilled labor, and favorable manufacturing conditions.

From Design to Production: The Nike Manufacturing Journey

While Nike products are designed and developed in the United States, particularly at the company's headquarters near Beaverton, Oregon, the actual production follows a complex global journey:

Design and Innovation: Occurs primarily in the USA at Nike's headquarters
Material Development: Specialized materials are sourced globally
Prototyping: Initial samples created, often in specialized facilities
Mass Production: Contract factories in Vietnam, China, Indonesia, and other countries
Quality Control: Rigorous testing throughout the manufacturing process
Distribution: Products shipped to regional distribution centers
Retail: Products reach consumers through various channels including Nike stores, retail partners, and e-commerce

Nike's Manufacturing Imagery

A glimpse inside a Nike manufacturing facility showing production processes

Nike's global manufacturing footprint showing factory locations worldwide

Workers in a Nike contract factory producing athletic footwear

Sustainability and Ethical Manufacturing Initiatives

Beyond its manufacturing network and sales performance, Nike has increasingly focused on sustainability and ethical manufacturing practices:

Sustainability Programs

Reuse-A-Shoe Program: Established in 1993, this initiative collects old athletic shoes of any type for recycling
Materials Recycling: Recycled materials are used to create sports surfaces like basketball courts and running tracks
Sustainable Sourcing: Increasing use of environmentally friendly materials in production

Labor Practices and Corporate Responsibility

Nike's history with labor practices has evolved significantly over the decades:

Past criticism of working conditions in contract factories led to comprehensive reforms
Implementation of supplier code of conduct and regular factory inspections
Increased transparency through publishing factory locations and audit results
Ongoing initiatives to improve worker conditions throughout the supply chain