Nike's Unconventional Marketing History

Nike has a storied past filled with eccentric and at times contentious marketing decisions. For instance, there was the controversy surrounding the Betsy Ross flag, linked to slavery, which was quickly retracted. Additionally, the brand faced backlash when it sponsored Bam Margera, a star from "Jackass" and a professional skateboarder, despite not having a line of shoes tailored for skateboarding. Unsurprisingly, Margera disliked the shoes so much that he removed the logos and attached them to different skate shoes to keep his sponsorship intact.

Furthermore, there were troubling reports suggesting that Nike was terminating sponsorships for female athletes who became pregnant and needed time to recuperate. Thankfully, the company has since revised its policies to be more supportive of mothers, albeit after facing significant criticism.

The Arrival of Zach Galifianakis

Zach Galifianakis, a remarkably talented underground comedian, gained fame for his role in "The Hangover." His rise to stardom coincided with Nike's efforts to connect with younger audiences, who were becoming increasingly elusive amid rising competition. Seeking to explore a new promotional strategy, Nike approached Zach to don their shoes at red carpet events and appear in commercials as a personal trainer.

However, it became evident that Nike's team had not fully grasped Zach's unique comedic style or his body of work. Known for his absurd humor and deadpan delivery, Zach often challenges norms with hilariously bizarre questions. For instance, he once posed a question to the Grand Wizard of the KKK about whether he had ever seen "Big Momma's House 3," to which the answer was predictably negative.

Zach's Nike Sponsorship

During a scheduled call with Nike, excitement filled the air as everyone dialed in to discuss this promising opportunity. Within minutes, however, Zach casually asked, "So, are you still having children make all your stuff?" The response was deafening silence.

He had unintentionally broached a sensitive topic. Following a few more awkward moments, Zach and his agent never heard from Nike again, leaving the question unanswered. His inquiry was not unfounded; Nike commands a staggering 62% of the athletic footwear market, with a significant portion of its production occurring overseas.

The Background of Controversies

In the 1990s and 2000s, Nike faced severe criticism for its labor practices, including allegations of utilizing sweatshops in Malaysia and other South Asian nations. Reports indicated that many of the workers were minors earning as little as 14 cents an hour and subjected to unsafe working conditions, with some employees even required to run laps for errors made during production.

This scandal sparked widespread protests across the nation and nearly cost Nike its reputation as a market leader. Many athletes severed ties with the brand, prompting turmoil within the company. In response, then-CEO Phil Knight took decisive action, stating, "The Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse. I truly believe the American consumer doesn't want to buy products made under abusive conditions."

While Nike has made strides in improving working conditions, its products are still manufactured cheaply overseas and sold at a significant markup.

Lessons from a Comedian

Perhaps Nike could learn a thing or two from Zach's approach to humor. He has built a successful career on being candid, honest, and self-deprecating. Despite the fallout from his joke, Zach continued to thrive, raking in millions from "The Hangover" sequels and gaining further notoriety with his "Between Two Ferns" series, where he interviewed high-profile figures, including President Barack Obama.

There are moments for humor and moments for discretion, and sometimes those moments overlap. Should you find yourself in a similar situation with a major sponsor, it might be wise to tread carefully. But if you have the boldness of Zach, feel free to share the story of what transpired.

Ultimately, it was Nike, not Zach, that had employed underage workers.

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