NIKE is one of the innovators of the industry- defining manufacturing subcontracting approach. It is among those products that explore innovative ways of manufacturing so it can modify products on a unique scale. The main manufacturing drives that NIKE portray include manufacturing modernization and innovation, material consolidation and lean manufacturing. The manufacturing process of NIKE’s footwear is carried out outside the United States by autonomous contract manufacturers that frequently run several plants. NIKE is supplied by approximately 430 clothing factories which operate in 41 countries. Most of the apparel production is accounted for by countries such as Indonesia, China, Malaysia, Thailand, Vietnam, Pakistan, and Sri Lanka.

NIKE has five main distribution centers in the United States situated in Tennessee, Memphis and the rest three function on a leased basis. The company has had 16 supply centers outside the US at the end of financial year 2014. Foothill ranch in California is the distribution centre from which NIKE equipment products and brand apparel are shipped. Hurley and Converse products are primarilyshipped from Ontario in California.

NIKE has three main channels through which its products are distributed. They include selling direct-to-consumer sales as well as factory and in line retail outlets, selling products to traders in international markets and United States, and selling to worldwide brand divisions. NIKE has also tried to generate class-specific retail destinations by joiningfootwear retailers like JD Sports, Foot Locker, Intersport and Inc. (FL). NIKE can also be deemed as having a selective supply because they are found in places that are similar to their target markets and locating retail stores that supply athletic wear including shoes and clothing. The retail supplies are found in shopping malls and self-supporting stores where clients in this market can acquire them when they want to buy NIKE shoes.

According to NIKE’s sales retyail and mix slant, wholesalers sales are the major revenue group. Nevertgheless, this group’s contribution in the sales mix done from 84% in financial year 2012 to 80% of revenues in financial year 2014. Direct to consumer scales ( DTC)  on the other hand, improved from 17% to 21% over the same time. This is pointedly lower than the percentage of DTC incomes for NIKE’s competitors in the world. The most recent times have shown that the respective ratios of DTC income to total income for Adidas AG, VF Corporation and Under Armour Inc. are 26%, 24% and 26.5%.  NIKE is focused on having direct sales to the clients with its DTC enterprise. In comparison of NIKE’s distributon channels, direct sales to clients offer increased boundaries than doing sales to wholesalers. DTC incomes in the financial year 2014 brought 22% of total NIKE Brand incomes in comparison to 19% in the financial year 2013. Dtc incomes increased to 23% in financial year 2014 and 32% over recent years.

The NIKE brand practice stores offer consumers with elements of retail scheme. Quality stores offering the best brand practice include NIKETOWNS which are the biggest stores. On the other hand, factory stores provide a quality product to customers who shop for value. Online sales through NIKE’s website have also increased over the years. Onlines sales made 16% of total NIKE brand in the financial year 2014 compared to 11% in the finanacial year 2013. Online selling has become one of the main future development drivers of NIKE’s retail policies.