Nike Stock: Analyzing 5 Key Suppliers (NKE)

Nike (NKE) is the largest seller of athletic footwear and apparel in the world. Its business is focused on product design and development, marketing and sales. Key product categories are running, basketball, the Jordan Brand, soccer, training and sportswear. Nike has 1,100 retail stores in the United States and internationally, and employs approximately 75,400 workers worldwide. For the 2020 fiscal year, it reported $37.4 billion in revenue.

Nike is supplied by 122 footwear factories located in 12 countries. For fiscal 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 largest source of apparel at 28%, followed by Vietnam with 23% and Thailand at 12%.

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

Pou Chen Corporation

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

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

PT Pan Brothers

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

The company manufactures fall and winter jackets, pants, shorts, casual pants, dress shirts, snowboarding and ski outerwear, polo shirts, golf shirts, track suits, sweat suits and other active wear at its factories throughout Indonesia. The company sells to Nike through its subsidiary PT Prima Sejati Sejahtera.

Fulgent Sun Group

Fulgent Sun Group is a sports and outdoor footwear manufacturer based in Taiwan. The company makes 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 Armour (UA). Fulgent Sun has supplied Nike since 2009.

Delta Galil Industries

Delta Galil Industries (DELTY) is and Israeli-based maker of private label apparel with factories throughout southeast Asia. The company produces intimate apparel, socks and active wear for global brands such as Nike, Victoria’s Secret, Calvin Klein, Maidenform, Tommy Hilfiger, Lulu Lemon and Under Armour. Delta Galil also makes private-label products for Walmart (WMT), Target (TGT), Marks & Spencer and Amazon (AMZN). Delta Galil manufactures a variety of clothing products for Nike. It operates with Nike a strategic development center for socks in the U.S.

Eagle Nice International Holdings

Eagle Nice International Holdings is a maker of down jackets, sweaters, sports pants and other sportswear. The company is based in Hong Kong and manufactures apparel primarily in China and also Vietnam and Indonesia. In addition to Nike, Eagle Nice manufactures product for brand names such as Puma and North Face for the Asia-Pacific market. The company reported HK$2.7 billion in sales in 2019, or US$348 million. It does not provide figures detailing its business with Nike.