By: ARTHUR BRIDGEFORTH JR. CRAIN'S DETROIT BUSINESS
Livonia company is teaming up with Nike Inc. to help the athletic shoe manufacturer better understand and do business in the Arab-American and Muslim communities.
IAATrade-USA Corp. signed the partnership deal with Nike for an undisclosed amount last week. The exact length of the contract also was not disclosed, although it was described as ``multiyear.''
IAATrade, which stands for Islamic Arab-American Trade, employs eight people. The 2-year-old company had revenue of $68,000 in 1997, said Abed Baidas, president and part owner. It is projecting more than $500,000 in revenue for 1998.
Nike (NYSE: NKE) is trying to clear up misunderstandings resulting from a shoe logo it used last year that offended some Arab-American Muslims. The script ``Air'' logo on a line of shoes last summer resembled the word ``Allah,'' which means God in Arabic.
The Beaverton, Ore.-based company recalled about 38,000 shoes, discontinued the line and issued an apology at the time.
Roy Agostino, Nike's director of international corporate communications, said the company hopes the partnership deal will help heal wounds created by the logo controversy.
``The controversy is definitely on people's minds,'' he said after a four-day trip to metro Detroit last week. ``There's definitely a rift that needs to be healed.''
Nike is IAATrade's only client. Baidas said he hopes to have more partnership agreements with other companies in the next 60 to 90 days.
He said his company will consult with Nike on social and business opportunities within the Arab-American and Muslim communities in a multiphase program.
For the first phase, IAATrade will identify Arab-American and Muslim community centers in seven cities, including Detroit, where Nike can support athletic programs or donate equipment, Baidas said.
The other cities are Atlanta, Chicago, Houston, Los Angeles, New York and Washington. IAATrade also will help Nike identify business opportunities in the seven cities.
Agostino said Nike's immediate focus is establishing a positive relationship with the Arab-American and Muslim communities. After that, it will explore business opportunities.
Allie Bazzy, vice president of Energy International, a heating, ventilation and air conditioning equipment exporter in Dearborn, said he thought this was a great opportunity for Nike and the Arab-American community.
He said he was impressed with Agostino's visit and the partnership deal.
``The trip that (Agostino) made from Nike really opened his eyes to the community,'' Bazzy said.
IAATrade and Nike worked together on an Arab-American trade show held at Cobo Center last year. IAATrade will put on the show again in November and Nike again will be among the corporate sponsors.
The American Arab Chamber of Commerce-Michigan in Dearborn has not been involved with the show.
``We as an Arab Chamber of Commerce did not endorse the action nor were we against it,'' said Tarik Daoud, who was president of the Arab Chamber last year.
Daoud, who is president of Al Long Ford Inc. in Warren, said the organization wasn't familiar enough with Baidas to make such an endorsement.