Few US brands are more associated with China in the minds of Americans than Nike. Thinking of sweat shop labor and prison labor in China, Nike immediately comes to mind. Even if Nike really is the worst violator, someone has done a bad job on PR if the perception I have is widely held. Of course the lost fingers, poor ventilation, and 16 hour work days are the fault of the contractors and not Nike itself and, to give credit where it is due, the efforts of Nike’s Corporate Social Responsibility (CSR) officers toward creating better working conditions have won much praise for the company.
Regardless of any negative associations, Nike nearly always sees rising profits, of which China is now a major source. Nike is one of the most well-recognized foreign brands in China. Over the seven months leading up to the Olympics, Nike will be releasing new products that cement the stature of the brand here. One of the first examples is the new Air Max 90 that celebrates Team China’s success in the 1984 Olympics in Los Angeles where it won 15 Gold medals. See the pics here.
Interestingly, even as Nike’s business improves in this market, much of its production is shifting out of China due to rising labor costs. The Chinese company that is one of Nike’s biggest suppliers, Yue Yuen Industrial, has shifted much of its production to Vietnam and Indonesia to cut costs. The new Chinese labor law, approved at the end of 2007, is expected to push even more producers out of the country.
