And they'll always find a new way, I suppose, whatever you find out about their business they'll just be one step ahead of you all the time.
That's right. And that's why I think consumers - obviously your readers are the hardest-core of the footwear consumer community - need to understand our business profile and other brands' profiles as well. There are a couple of fundamentals with Nike that will save them a few dollars. We have very particular contracts with our factories. We've got more than 750 factories in 55 countries - every single one of them has the same contract which says that they are commissioned to manufacture for Nike and they are strictly prohibited from trading in that commodity under any circumstances. So, every offer out there of excess inventory, factory over-runs, seconds quality and last-season direct from the manufacturer is all crap. We do not sell a single pair of shoes in that environment. They just read the consumers like a book. The consumer says, ‘Do you have letters of authority?' Hmmm, let's think for two seconds, this consumer wants a letter of authority - ding, ding, ding - ‘Yes, we do!' You know? ‘Do they come in boxes?' Hm, this consumer wants a box, ‘Yes, we do!' And they get Cousin Freddy on the line and they bang out another ten of the Nike letters.
But some manufacturing is rocket science. I've noticed 360s hadn't been out long and the fakes were already there. Some of those things are harder to manufacture, obviously, but they're onto it straightaway.
The 360 was available as a counterfeit BEFORE the genuine shoe was on the market. The difference was that in the early stages of 360 development, the first upper to be released was different from the one that was eventually released. Somehow the counterfeiters got access to what they considered at the time to be the end-product of the 360. Whilst they were doing that our design people actually changed their mind and went in a different direction. Once you have the equipment, changing the subtleties of the way these shoes look is the least of your problems. It's the same with a Mercedes Benz. People are counterfeiting Mercedes Benz motor vehicles. And they can make them look exactly the same. But a person buys a Benz not just for the badge, they buy it for the safety, the quality and the performance.
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