Showing posts with label Nike. Show all posts
Showing posts with label Nike. Show all posts

Tuesday, April 2, 2024

Action Replay: Kitted Out (2024)

The Action Replay column from the April 2024 issue of the Socialist Standard

Who will today’s game be between? Nike vs Adidas? Puma vs Umbro? Or maybe Castore will be potential giantkillers? All professional football teams have shirts and so on belonging to a particular brand, with the logo (the Nike swoosh, the three Adidas stripes, whatever) prominently displayed. Even official referees’ outfits in England are from Nike (farefereestore.thefa.com), but in Scotland they’re from Adidas.

And it’s all big business. Nike is the biggest sports company, with revenue of over $50m last year and over eighty thousand employees. It has been criticised for using sweatshops and child labour to make its products, and similar complaints have been made about Adidas, which has a minority share in Bayern Munich football club, and has revenue less than half that of Nike. Nike can count more Premier League teams as wearing their gear than Adidas, but in fact they have the same number as Umbro.

Both Nike and Adidas are long-established, but Castore, a British company, was only founded in 2015, and has just 500 workers. Yet it has been making progress, with three Premier League teams wearing its kit, together with Rangers in Glasgow, the England cricket team and the US national rugby team. They were involved in controversy towards the end of last year, with some of their shirts clinging to the wearers’ bodies when they became sweaty, which was particularly embarrassing for women players.

The kit manufacturers have contracts with the teams so as to ensure sales to supporters. Puma supply just one club, but that’s the champions, Manchester City, so their sales are pretty high. And, of course, it costs more to have a shirt with a particular player’s name and number on the back. Clubs also have at least one alternative kit in case of clashes, and change the details of their shirts every two or three years.

Nike and so on don’t just make sports gear, but also trainers, jackets, backpacks, etc. More specialist equipment, such as tennis and badminton rackets, is made by companies like Yonex, rather than Adidas et al: maybe there’s not enough profit in them, or perhaps it’s just that there’s free publicity for the company if you appear in public wearing and so advertising a flashy pair of trainers or a football shirt, but you won’t usually be carrying a badminton racket around with you.
Paul Bennett

Sunday, October 29, 2023

The Truth about Globalisation? (2003)

Book Review from the October 2003 issue of the Socialist Standard

Open World: the Truth about Globalisation. By Philippe Legrain. (Abacus £7.99.)

This book has been touted as the definitive response to the ‘anti-globalisation’ movement and writers such as George Monbiot and Naomi Klein (author of No Logo). Essentially, Legrain argues that globalisation is A Good Thing, delivering jobs and a better standard of living to poor countries and cheaper goods to the developed world. Coupled with free trade, and appropriate government action to prevent any unwanted side effects, it can benefit everyone.

Legrain begins by arguing that globalisation has not proceeded as far as many people may feel. For instance, three-quarters of the goods in British shops are made in the UK, and most people work for British companies; in the US, the corresponding figures are around 90 percent in both cases. He also has a genuinely useful chapter on the history of globalisation, suggesting that it was already well under way when the Industrial Revolution started.

But he then goes on to claim that workers in poor countries benefit from globalisation. In Vietnam, for instance, foreign-run factories pay around double the average local wage, and technology and management skills are transferred inwards. Yet sometimes he is astonishingly naive: he visits a Nike contract factory there, and describes it as “bright, airy, clean and safe”, but says nothing about the many other reports of low wages and appalling working conditions in sweatshops. He justifies the vast difference between what the workers earn per shoe ($2) and what the shoes sell for ($72) by noting all the other costs and the need for Nike to make a profit. In fact, this is his general argument: though he hardly uses the word “capitalism”, he is really defending globalisation as part of capitalism, and on the same grounds that capitalist supporters defend the profit system.

Nor, he claims, do brands really rule the world, as Naomi Klein implies. Rather, consumers hold the whip hand, as the brands have to cater to their whims. We still have a choice: if we don’t like Nike, we can buy Adidas (some choice!). Klein is described as virtually fascist for suggesting that ordinary people are manipulated into buying things they don’t really want, while she of course is intelligent enough to see through it all. It is true that people cannot be manipulated in any simplistic way, but they can certainly be influenced, which is why the global brands spend millions on advertising. Legrain also blithely ignores advertising to children, who are clearly far more manipulable than adults.

Equally, companies are supposedly not all-powerful, being at the beck and call of those who buy their products and call the shots. Some of Legrain’s arguments here are just plain silly. For instance, he states that Margaret Thatcher’s privatisation programme was introduced because she thought it made economic sense, “not because she was taking handouts from big business”. But capitalist politicians do what seems to be good for capitalism, and to suggest that such actions would only be taken if they were corrupt is missing the point completely.

Basically, Legrain’s book is a hymn to capitalism and to profit-making. If you think that capitalism is basically a nice, friendly system—though it may need a bit of adjustment from time to time—then it may well be logical to support its globalising aspect. After all, it means more customers, more profits. But the anti-capitalist or anti-globalisation movement, for all its confusions, is a sign that increasing numbers of people are rejecting the idea that profit is good for everyone and that a small number of parasites should control the Earth’s resources. Open World may make the capitalists and their supporters happy about what their system is doing to the world, but in truth it is no more convincing than any other attempt to defend the profit system.
Paul Bennett

Saturday, August 19, 2023

Anti-capitalism or just anti-capitalists? (2001)

Book Review from the August 2001 issue of the Socialist Standard

Naomi Klein’s book No Logo has been widely proclaimed as a manifesto for the anti-capitalist movement. Klein herself disclaims any notion that she has written a manifesto, but the book is still well worth examining. It deals with the development of enormous global corporations and some of the resistance to this; the title reflects a general anti-corporate attitude.

It is common to observe that all high streets look very much the same nowadays, with Next, Virgin, Pizza Hut and McDonalds being found more or less everywhere, and not just in the UK. This illustrates the rise of the brand or superbrand, which is constituted by an image or a logo much more than just a range of products. Marketing gurus see the brand as crucial – companies should create a brand, not just sell a product. For instance, John Grant’s The New Marketing Manifesto argues that a brand is “a popular idea or set of ideas that people live by”. Brands “add value to people’s lives”, and are the new traditions (now that older traditions such as a sense of community have decayed). This kind of celebration of brands shows an uncritical acceptance of capitalism’s values.

In contrast, Klein looks behind the logo and the label to expose the darker side of branding. The logo has expanded in size and importance with items of clothing just being empty carriers for the brand. She quotes the boss of Nike:
“For years we thought of ourselves as a production-oriented company, meaning we put all our emphasis on designing and manufacturing the product. But now we understand that the most important thing we do is market the product. We’ve come around to saying that Nike is a marketing-oriented company, and the product is our most important marketing tool.”
Companies such as Nike, Gap, McDonalds, Disney and Starbucks are not simply multinational corporations (which would mean they have different brands and products in different countries), but are truly global corporations (with the same brands and marketing wherever they operate). Nike in particular has emerged as a real superbrand: its swoosh logo is an immensely popular tattoo in the US, among both customers and workers. Imagine flaunting your status as a wage slave by having your employer’s logo tattooed on your leg. Some American teenagers are quoted as saying that Nike is more important to them than their girlfriend is.

One theme of No Logo is the way in which advertising, sponsorship and the market have expanded into areas of life which were previously free of them, thus resulting in the loss of what Klein calls “unmarketed space”. A blatant instance of this is in schools, where companies sponsor lessons and TV programmes and all manner of equipment. Sponsorship of sporting and cultural events is now far wider than it has ever been.

But perhaps the biggest effect of the growth of the top brands is on employment. Increasingly, such companies are moving production to developing countries, especially in East and South-East Asia, in pursuit of cheap labour. Countries such as Indonesia, Vietnam, China and the Phillipines have been happy to provide so-called free-trade zones or export-processing zones, with tax breaks for companies and no right to union organization for workers, as a means ot attracting the global corporations. Sub-contractors are used, so that, when questioned about wages and working conditions, Nike, Reebok and so on can reply that they do not actually employ anyone in Indonesia or wherever. Their production becomes far more flexible, as they don’t need to own land or factories, and can respond more easily to fluctuations in demand. They will also happily move prodution ftom one developing country to another in pursuit of a cheaper and more docile workforce. Young workers are often drawn into these zones with promises of good pay, only to find appalling wages, long hours, dangerous conditions, and tyrannical bosses, who may lock workers up if they refuse to do overtime. Some of the descriptions are reminiscent of nothing so much as Engels’ accounts in Condition o/ the Working Class in England in 1844—sweatshop conditions have just been exported to the “Third World”.

Companies such as British Airways and Debenhams have relocated much of their call centre work to India, where wages are a fifth of the UK level. The workers are given crash courses in British culture, everything from soaps to football, so they can chat knowledgeably with the callers, who don’t suspect that they are speaking to someone in Delhi or Bombay

However, while workers in Indonesia or Vietnam can make clothes, shoes or whatever, they cannot sell them in North America or Western Europe. Here, the global corporations have led the way in the notorious Mcjobs – part-time or temporary work often on near-minimum wages. In coffee bars such as Starbucks, workers may have to work two or three shifts a day, to coincide with the busy periods. This gives the company the flexibility to cope with fluctuations in business without having to pay people to just stand around, but for staff it is, to say the least, extremely disruptive. In other companies, Microsoft for instance, jobs are contracted out to agencies who (surprise!) pay far lower wages. Again, this boosts flexibility and the ability to respond to booms and slumps in demand, avoiding such problems as redundancy pay. Many “permatemps” have been employed in this way for years, without gaining proper employee rights.

This, then, is the picture that Klein presents, of a world increasingly dominated by global corporations and their cultural and economic impact, where wotkers slave away in sweat shops for a pittance with little ability to fight back, and where temporary jobs hold sway. Profits soar, while the workers suffer.

The final section of No Logo deals with various kinds of opposition and resistance to the superbrands and the kind of society they represent. This can range from the fun but ineffectual – such as parodying advertisements or throwing custard pies at Bill Gates – to to the more substantive responses of Reclaim The Streets and the wider ‘anti-capitalist’ movement. Such activity Klein describes as “laying the foundations for the first truly international people’s movement”. Here are some examples:
  • Exposing sweatshop and child labour, including school pupils discovering who made their uniforms
  • Local councils entering into selective purchasing agreements, and refusing to buy from companies that (for instance) trade with Burma
  • Secondary boycotts against cornpanics that supply other companies rather than the public directly
  • Campaigns such as that against Shell in Nigeria
  • Klein is well aware of the limitations of brand-based politics, e.g. that boycotts can be counter-productive and that such campaigns tend to miss the broader economic context. Her argument, though, is that “you’ve got to start somewhere”, so you might as well start with aiming your attacks at one big corporation, normally Nike.
However, the idea of “starting somewhere” naturally implies going on to address other issues in the fullness of time, and it’s here that Klein’s ideas become mundane and just plain disappointing For instance, she advocates enforcement of existing ILO treaties, and that employment codes of practice be drafted by the workers themselves rather than by the corporations. All this of course assumes the continued existence of employers and employed, and offers no vision of the ending of class division.

Global capitalism is not a new creature, it is just capitalism writ large and even nastier. A return to pre-global capitalism would be no altetnative, even if it were practical. But it should now be clear beyond dispute that national-based solutions to humanity’s problems are pointless, and that a world movement, leading to world socialism is urgently needed.
Paul Bennett

Blogger's Notes:
Though not listed in the contents of the August 2001 Socialist Standard as a book review let's be honest, to all intents and purposes, this is a book review. No Logo was also reviewed in the December 2000 issue of the Socialist Standard by Cyril Evans.

Wednesday, December 12, 2018

Marketing crap (2012)

Book Review from the January 2012 issue of the Socialist Standard

Born to Run. By Christopher McDougall. Profile Books.

Hundreds of scientists recently convened in London to untangle half a century of sports and leisure propaganda that more supportive shoes are better. Running is one of the most natural things human beings can do; it is as good for you as long periods of sitting are bad for you. It is as vital to our sustainability as a species as is breathing, eating and reproduction. Christopher McDougall was puzzled, then, to learn from podiatrists that recreational running is blighted by injury. His research led him to write this best-seller which spawned the movement that is challenging the supportive shoe orthodoxy. The journalist for Men’s Health tells the tale of his time with the Tarahumara tribe from Mexico.

“In Tarahumara land, there was no crime, war or theft … Fifty-year-olds could outrun teenagers, and eighty-year-old great-granddads could hike marathon distances up mountainsides. Their cancer rates were barely detectable.” They did no stretching or warming up, partied all night and got drunk on beer the night before a race. The races could last two days.  Some runners could do 300 miles or 12 full marathons back to back. When the Tarahumara were introduced to Leadville 100 mile Ultramarathon in Colorado in 1993, they revolutionised ultra-running and broke records, a 52 year-old Tarahumara runner finished first, a 46 year-old Tarahumara runner finished second.

The barefoot movement that the book has spawned simply contends that supportive shoes encourage unhealthy habits. These include heel strikes rather than toe strikes, and pronation which causes knee injury.  The book stops short of asking why the lucrative trainer industry has ignored or suppressed this evidence and sells bad running shoes. The answer is that some scientific studies and research is in the interests of capital to sponsor, and other studies are not. As cultural theorists such as the Frankfurt School have observed, the culture industry does not just fail to meet needs, it actually creates false needs and artificial desires too.

Since the co-founder of Nike (and champion sports coach) Bill Bowerman liked to claim responsibility for the popularity of recreational running with the publication of Jogging in 1962 then the industry ought to be responsible even on its own terms. Eventually even Bowerman concluded Nike were “distributing a lot of crap” in order to “make money”.

Although the scientific consensus now is inconclusive, trainer companies have already started selling shoes with minimal support to simulate the effect of going barefoot. So in the trainer industry, just as in capitalism generally, no crises are permanent, just unnecessarily wasteful and extremely destructive.
DJW