Nike Demand Creation Rose 10% in FY14 Driven by World Cup Costs
The Eager Beavertons spent $3,031 million on demand creation, which includes all advertising and promotional expenses and cost of endorsement contracts, in the recently completed FY ended May 31 versus $2,745 million last year when demand creation costs were up 5% on the Fuelband and NFL launches. On the sourcing front last FY, NKE utilized 150 factories in 14 countries with Vietnam (43% vs. 42% in FY13) continuing to lead the way in footwear volume followed by China (28% vs. 30%) and Indonesia (25% vs. 26%). Five footwear contract manufacturers each accounted for greater than 10% of Nike’s FY14 footwear ... Log in to view full article.