DISCUSSION

Nike Won't Green It

Written by Tom Ryan
By Tom Ryan

Nike Inc. is one of the most eco-conscious companies in the world but you wouldn't know it from its marketing efforts. While the brand is about being fast, excelling and persevering as well as being the coolest kid on the block, it's not about being green.

"Nike has always been about winning," Dean Crutchfield, an independent branding consultant in New York, told BusinessWeek. "How is sustainability relevant to its brand?"

Since its Reuse-A-Shoe footwear recycling program was launched in 1993, sustainability has been a key focus and the company is regularly praised by eco-groups for those efforts.

In October 2008, Nike again raised its eco-goals in with the debut of the latest products under Nike Considered Design. The program sets strict standards for using eco-conscious materials, reducing waste in factories and cutting toxins. In Spring 2009, 15 percent of Nike footwear met "Considered" standards.

Nike also set ambitious goals to have 100 percent of Nike footwear meet baseline Considered standards by 2011, all apparel by 2015, and all equipment by 2020. Once these benchmarks are reached, waste in Nike's supply chain will have been reduced by 17 percent and environmentally preferred materials increased by 20 percent.

But Nike remains mum to the public about its environmental efforts and its reluctance to spread its green message comes despite eco-efforts being regularly touted in advertising by the likes of General Electric and Wal-Mart. Eco-messages also drive many campaigns for competitors, such as Patagonia, Timberland, and Columbia. Many of these campaigns are designed to inspire consumers to be more eco-conscious and to make a difference in the world.

Nike executives told BusinessWeek that eco-conscious and "do-good, feel-good" marketing doesn’t fit the ethos of the brand. They said they learned this lesson themselves when the company launched a line of eco-friendly walking boots, likewise called "Considered," in 2005. Made with brown hemp fibers and an earthy look, critics called the $110 shoes "Air Hobbits" and said the shoe design detracted from its high-tech image. The line was soon removed from the market after poor sales.

Lorrie Vogel, who oversees Nike's green business practices, said the lesson for Nike was that its green efforts should continue, but its customers shouldn't be able to tell.

"We want to do more and say less," said Ms. Vogel.

Discussion Questions: Do you think green marketing would be detrimental to a brand like Nike? Is Nike missing an opportunity by not promoting its green efforts?

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