Nike, Inc. is an American multinational business that designs, develops, manufactures, markets, and sells footwear, apparel, equipment, accessories, and services on a global scale.
Nike is a major player in the athletic world. The company pulled in revenue of over US$51.6 billion in its 2023 fiscal year and employs 83,700 people across the world. Just the Nike brand itself is valued at $30 billion as of 2024 – making it the most valuable brand in the sports industry. In 2018, Nike Corporation ranked 89th on the Fortune 500 list of the largest US corporations by total revenue. Nike has a 38.23 percent market share. The Nike marketing plan focuses on innovation, strong brand positioning, digital campaigns, and athlete endorsements to connect with its global audience.
Nike’s target audience ranges in age from 15 to 40 years old. The brand primarily targets teens who look up to famous and successful athletes. However, Nike also targets the middle-aged group to extend its popularity to the younger generation. For example, 40-year-old parents who are into football can influence their children to maintain an active lifestyle.
Nike understands that people who are constantly on the move and leading an active lifestyle are more likely to be interested in their products. This is why they focus on this psychographic segment when advertising and marketing their latest releases.
Nike specifically reminds users that its products are not about making you look good as an athlete, but about making you feel good. This is how it segments behavioral aspects.
Nike’s marketing plan focuses heavily on geographical location because sports vary so much from one place to another. For example, Nike wouldn’t be able to market to football players in India, Finland, or the Philippines because this sport isn’t nearly as popular there as it is in Mexico, England, or Australia.
Nike Marketing Mix
Nike’s marketing team is very strategic in their planning and execution – they understand how to make the most of the four Ps of marketing (product, price, promotion, place). By using a good mix of these elements, Nike can attract more potential customers, which leads to more sales for the company.
Nike Marketing Mix | Nike Marketing Techniques
Nike Pricing Strategy
Nike’s products tend to come with a higher price tag, but this doesn’t bother customers because Nike knows how to emphasize the benefits of their products in their marketing and advertising. This is essential to consumers because it helps them understand what they’re paying for.
Nike Place Strategy
The brand also sells its products through third-party resellers and retailers, which has helped to increase sales. However, the brand has diversified its selling channels by also selling through online stores and physical locations.
Nike Product Strategy
Nike has a long-standing reputation for delivering high-quality, fashion-forward products – something that other brands can’t always say. And Nike takes pride in maintaining this hard-earned reputation.
Nike Product Range
Nike Promotion Strategy
Nike’s marketing efforts are no accident – each campaign is carefully created to target a specific group of people, even those with different demographics and psychographics.
Nike is a household name in the sports world, and its success is due in large part to its marketing strategy. By targeting people’s aspirations, comfort levels, and ethnic values, Nike has positioned itself as a positive and aspirational brand. This has helped it achieve tremendous success worldwide.
With a swoosh logo and “Just do it” tagline it has touched millions of people.
A genius collection of marketing strategies is what makes Nike a successful brand.
Nike’s success didn’t happen by accident – they worked hard to create a loyal customer base by implementing specific strategies. Let’s take a look at how they did it.
Personalization
Customers choose high-quality goods with significant advantages. Things that help them individually are simple justifications in their eyes.
Personalization is NIKE’s key competitive advantage. It positions itself as a premium fitness brand by fusing cutting-edge technology with human psychology to increase client acquisition.
Almost every component of its marketing mix uses its two-ingredient customization approach.
People may change the color of their shoes using the “Nike By You” product collection. With the addition of the most recent technology in 2018, customers could now use their smartphones to point at their feet and receive the ideal shoe size. Customers can enjoy remarkable shopping experiences at its concept stores, which elevate the retail environment.
If you provide your clients with a customized shopping experience, 77% of them will pay a premium and promote you to others.
Nike Customization
Value Propositions
A factor driving 40% of consumers to choose NIKE items over rivals is the company’s distinctive value offer. It markets its products using a healthy lifestyle as a differentiator.
It exhorts individuals to pursue an active lifestyle and promotes its shoes as the ideal solution.
Nike swiftly followed up their Running Free campaign with a Running Free collection to inspire people to act. The marketing strategy generated a lot of interest and raised brand awareness for the product.
If you go back to NIKE’s earlier campaigns, you can see that Nike has been utilizing this strategy for decades.
To increase sales, it promoted jogging as a trend, developed a fitness routine to market its gear, and elevated its shoes to the status of a fashion statement.
Steps, Nike
To draw clients, it essentially promotes lifestyle improvements as its special selling point.
Don’t sell products, sell ideas!
Brand Equity
Because of its strong brand equity, Nike is one of the few businesses that has successfully maintained its top position for years. By developing a strong brand, distinguishable personality, and reliable image, it has solidified a position in the sports market.
Nike has sought to be connected to inspiration, success, and innovation ever since its founding in 1964. It began with a distinctive brand identity to achieve it, selecting the name of the Greek Goddess who stands for victory and the swoosh logo to symbolize speed.
It worked with well-known sportsmen to increase the value of its products, and it ran motivational ads to reinforce its brand. Its iconic logo is a status symbol for millions of customers.
Your product’s perceived worth is raised by your brand equity. It enables you to elevate your brand’s reputation and command higher pricing for your goods.
Storytelling
The cornerstone of Nike’s marketing strategy is narrative and emotionally engaging advertising. It’s how it originally attracted attention, built its reputation, and today conveys its brand values.
When it first introduced the “Just Do It” campaign in 1988, it used a straightforward setting to tell the life story of 80-year-old marathon runner Walt Scott. It still employs the Ad, which was one of its most effective marketing initiatives, to draw in consumers.
Nike – Just Do It (1988) – Very first commercial | Marketing Strategies of Nike
Its uplifting theme helped its “What are girls made of” campaign, which promoted women’s sports, garnering three million views. The “find greatness” campaigns it ran helped it grow its membership by 55% and improve revenues to $506 million.
The two instances mentioned above are just a few. NIKE uses social and occasionally contentious issues to spark interest and touch a nerve to elicit a response.
Relevance is important in advertising, and Nike incorporates this component into their marketing initiatives. The message will remain with the viewers if they can relate to the main idea and moral lesson of the advertisements.
It is one of its most successful strategies and has markedly increased its brand image. It is now considered its go-to marketing tactic.
Seamless Online Shopping Experience
Nike’s website offers a smooth and engaging online shopping experience with a bold, vibrant, and youthful theme that matches its brand image. The site uses fearless and athletic visuals, like women exercising in Nike sportswear, to connect with its audience. Customers can easily find what they want through detailed filters such as type, gender, price, color, sport, or even athlete collaborations. The site also suggests related products to make shopping quick and effortless. Plus, Nike membership gives exclusive access to special products, customization options, and personalized offers, making the overall experience more rewarding.
Endorsements
NIKE typically uses sponsorships and endorsements to sell its athletic apparel. To promote itself, it spends billions on sponsorship deals with well-known athletes and sports organizations.
Celebrities and influencers play a key role in Nike’s marketing plan. By collaborating with those who have traveled the same path as the brand, brand communication will be strengthened. The brand sponsors individual athletes. This is because people admire those who have overcome hardships in their own life.
Tiger Woods, a golfing superstar, and the company inked an agreement in 1996 that saw a $22 million rise in the value of the brand from just one game. Because of its agreement with Tiger Woods, it has attracted 4.5 million subscribers and generated considerable earnings on its own.
Another excellent example of its successful endorsement strategy, which has earned it an average of $4 billion annually to date, is its well-known association with Michael Jordan.
Michael Jordan Endorsing Nike | Marketing Strategy of Nike
Endorsements also aid Nike in boosting the value of its brand. Due to its association with NFL star Colin Kaepernick, its “True to 7” shoe goods were completely sold out within hours of being on sale.
Large-scale sponsorships of events or recreational activities provide media exposure and face-to-face interaction that online marketing cannot replicate.
Product Innovation
The success of NIKE’s product strategy is frequently attributed to its emphasis on providing a better solution and enhancing performance.
The company considers the preferences of its customers and adjusts its features to fit the prevailing trends. As a consequence, its customers almost always have positive feedback to share about its products.
Bill Bowerman, the company’s creator, was a field coach who intended to create soles that might increase running speed. His research led to the “Moon Shoe,” which established the demand for lightweight shoes.
To stay ahead of the competition, NIKE also incorporates variety into its product range. It provides both casual streetwear and sportswear. Its market size has grown thanks to this strategy, which has also drawn in new market categories.
By developing innovative designs every year, NIKE increases the value of its products. Because of this, its goods are of great quality and are revolutionary.
As a well-known worldwide retailer, NIKE relies heavily on wholesale sales. However, if you look closely, you will see that it has heavily invested in its direct-to-consumer selling platforms. Because they not only provide a better profit margin in comparison but also make it possible to develop connections with customers.
For many years, NIKE has consistently sold its goods through respectable retailers like Urban Outfitters and Macy’s. However, when online shopping became more popular, it discovered the possibilities of direct-to-consumer marketing and changed its emphasis to eCommerce sales. Its D2C sales have increased from 15% to 38% since then.
In 2017, it formally revamped its whole distribution strategy and began severing relationships with several significant partners in favor of its physical stores and online shops.
Through its shopping online app and eCommerce businesses, it acquired millions of consumers as a result of the decision.
Nike guarantees a simple, fun, and hassle-free online shopping experience. The eCommerce platform for Nike has some incredible features:
Bold branding on websites
Smart product suggestions
Detail-oriented product filtering
Loyalty Programs
Currently, Nike anticipates that 50% of its sales will come from digital channels.
Social Media Marketing
The most popular brand globally, Nike, has by far the most social media following. Most of its postings receive frequent good feedback from its followers, and half of its tweets are shared several times.
Take a peek at Nike’s social media pages to discover how popular the company has grown. 10.1 million people follow it on X (formerly Twitter) and 305 million people follow it on Instagram (as of July 2024). Nike often asks its followers to share their own stories and experiences using hashtags. This is part of their digital marketing strategy to start conversations and build a sense of community.
Nike Instagram | Nike Marketing Strategies
Over 300 accounts are maintained across all social media platforms. Many major corporations do have control over many sites, but Nike goes a step further by creating different pages for its goods, consumer demographics, and geolocation. This makes it possible for it to quickly develop targeted ads and drive relevant traffic to its product websites.
With interactive challenges, it keeps its fans thoroughly delighted. By establishing programs like The Chance and Fuel Your Team, NIKE engages its fans directly, garners a ton of attention, and expands its reach.
Nike’s social media marketing strategy uses the following tactics:
Collaborate with eminent personalities
Participate in consumer dialogues
Using user-generated content
Spread out your stories throughout social media platforms
The majority of NIKE’s social media tactics aren’t all that distinctive from those of other powerful businesses. It has only been able to establish a more substantial online presence as a result of utilizing social media interaction tools.
Therefore, if you want to use Nike’s marketing tactics, you must identify your target demographic, determine how to reach them, and provide content that speaks to their needs. Also, keep in mind: Sell ideas, not products!
Nike is best known for its footwear, apparel, and equipment.
What are the marketing strategies that helped Nike build a loyal customer base?
Here is a list of marketing strategies that helped Nike build a loyal customer base and build a globally popular brand:
Personalization
Value proposition
Brand Equity
Storytelling
Endorsements
Product innovation
E-retailing
Social media strategy
What is Nike’s targeting strategy?
Nike’s target audience ranges in age from 15 to 40 years old. The brand primarily targets teens who look up to famous and successful athletes. However, Nike also targets the middle-aged group to extend its popularity to the younger generation.
What is Nike product development strategy?
Nike’s product development strategy focuses on innovation, technology, and style, creating high-performance sportswear that blends function with fashion while collaborating with athletes and designers to stay ahead of trends.
What is Nike advertising strategy?
Nike’s advertising strategy uses emotional storytelling, athlete endorsements, and bold campaigns to inspire and connect with audiences worldwide.
Shubman Gill has rapidly emerged as one of India’s most promising cricketers. With his stylish batting, impeccable technique, and impressive performances on the international stage, he has not only won millions of hearts but also caught the attention of leading brands. Gill’s youth appeal, clean image, and growing influence in the cricketing world make him a sought-after name in brand endorsements.
From sports equipment to luxury watches, fitness brands to tech gadgets, Gill’s endorsements reflect his versatility and growing stature. His association with multiple industries also showcases his adaptability and marketability. In this blog, we will take a look at Shubman Gill’s brand endorsement portfolio and explore why companies are keen to associate with this cricketing sensation.
Shubman Gill, an iconic Indian cricketer, has been appointed as the brand ambassador for MuscleBlaze’s MB Fuel One Sports range. This collaboration is highlighted by the campaign “Rehydrate. Reload. Recover like a PRO,” emphasizing the importance of proper nutrition and hydration for peak athletic performance.
Gill’s commitment to fitness aligns perfectly with MuscleBlaze’s mission to promote a healthy and active lifestyle among the youth. The MB Fuel One Sports range, curated for athletes, includes products like Sports Protein and the rehydration supplement Hydr8 Pro, all designed to support uncompromised performance and set athletes up for ultimate success.
Casio India
Casio India – Shubman Gill Brand Endorsements
G-SHOCK, renowned for its unbreakable watches, has launched the ‘Rise Above the Shocks’ campaign featuring their brand ambassador, cricketer Shubman Gill. This collaboration aligns with G-SHOCK’s 40-year legacy of crafting tough, trend-setting timepieces and Gill’s embodiment of resilience on and off the cricket field.
The campaign showcases Gill wearing the GA-2100-1A1 model, a standout in the 2100 series known for its contemporary design, octagonal bezel, slimmer construction, and use of lighter materials like a carbon core guard. These features enhance both the watch’s aesthetics and durability, appealing to a younger, fashion-conscious audience.
TVS
TVS – Shubman Gill Brand Endorsements
TVS Motor Company launched the #MoveLikeARonin campaign for their modern-retro motorcycle, the TVS Ronin, featuring Indian cricketer Shubman Gill. The campaign encourages individuals to live unscripted lives, charting their paths and rejecting predefined norms. In the campaign film, Gill is portrayed executing unconventional cricket shots, symbolizing the campaign’s message of forging one’s path.
CEAT Tyres
CEAT Tyres – Shubman Gill Brand Endorsements
Shubman Gill signed a deal with CEAT Tyres, making him one of the few cricketers to use and endorse their bats. CEAT, a well-known tyre and sports equipment brand, has been associated with cricketing legends like Rohit Sharma. Gill’s association with CEAT further cements his status as a future cricketing superstar.
The partnership highlights his aggressive yet technically sound batting, which is a perfect match for CEAT’s robust and high-quality cricketing gear. As he continues to shine in international cricket, his association with CEAT strengthens, reinforcing the brand’s trust in young talent.
Nike
Nike – Shubman Gill Brand Endorsements
Nike, a global sportswear giant, signed Shubman Gill as one of its brand ambassadors. As a young and dynamic athlete, Gill perfectly aligns with Nike’s brand ethos of motivation and excellence. He has been spotted wearing Nike apparel and promoting their sports gear in various campaigns.
The brand, known for collaborating with elite athletes worldwide, saw potential in Gill’s skill, determination, and fan appeal. This collaboration helps strengthen Nike’s connection with India’s young sports enthusiasts.
Recently, this partnership made headlines. During the Edgbaston Test in July 2025, Gill was seen wearing a black Nike vest. This drew attention because the Indian team has an exclusive kit deal with Adidas until 2028.
The moment went viral and sparked online debate. Many questioned if Gill broke any rules. Reports suggest the Adidas deal may not cover innerwear like vests. As of now, BCCI and Adidas have not made any official statement.
Still, the incident gave Nike massive visibility. It also shows Gill’s rising influence as a brand ambassador.
Beats
Beats – Shubman Gill Brand Endorsements
Gill became the face of Beats, one of India’s leading audio brands, known for its stylish and high-performance headphones and speakers. His association with Beats highlights his appeal among the younger generation, who admire him not only for his cricketing skills but also for his trendy lifestyle.
With Beats’ focus on innovation and fashion-forward designs, Gill’s presence as a brand ambassador helps create an aspirational image for consumers. His ability to stay composed under pressure aligns with the brand’s message of delivering immersive and distraction-free audio experiences.
JBL
JBL – Shubman Gill Brand Endorsements
JBL, another prominent audio brand, partnered with Gill to strengthen its presence in the youth market. His collaboration with JBL aligns with his stylish and energetic persona, appealing to cricket fans and music lovers alike.
Gill’s involvement in JBL campaigns showcases his dynamic lifestyle, emphasizing the brand’s premium sound quality. Whether he’s training, traveling, or relaxing, JBL’s products enhance his experience, making the brand a go-to choice for music enthusiasts.
My11Circle
My11Circle – Shubman Gill Brand Endorsements
Shubman Gill is also an ambassador for My11Circle, a popular fantasy cricket platform. His presence in their campaigns adds credibility to the brand and attracts cricket fans to participate in fantasy leagues.
His cricketing expertise and in-game intelligence make him a perfect fit for My11Circle, which thrives on cricket enthusiasts making strategic fantasy team selections. His involvement enhances brand engagement and user participation.
Fiama Men
Shubman Gill has also collaborated with Fiama Men, a popular grooming brand offering premium skincare and shower gel products. As an athlete constantly exposed to sweat and sun, Gill’s endorsement emphasizes the importance of self-care and maintaining fresh, healthy skin. His association with Fiama Men aligns with the brand’s focus on modern, energetic, and confident individuals.
ITC Engage
ITC Engage – Shubman Gill Brand Endorsements
Shubman Gill has partnered with ITC Engage, a popular fragrance and deodorant brand. His collaboration with Engage highlights his charismatic personality and youthful charm, making him the perfect face for a brand that celebrates confidence and attraction. His association with ITC Engage is aimed at connecting with the younger generation who admire his cricketing prowess and stylish appeal.
beatXP
beatXP – Shubman Gill Brand Endorsements
Gill partnered with beatXP, a startup focusing on innovative fitness solutions and smartwatches. As a fitness-conscious athlete, his association with beatXP helps promote smart fitness tracking and innovative wellness products, making fitness accessible and effective for everyone.
Gillette
Gillette – Shubman Gill Brand Endorsements
Gillette launched the “Play With The Stars” campaign, featuring Indian cricketers Shubman Gill and Shreyas Iyer. This initiative offered fans a chance to meet and play cricket with their idols by purchasing Gillette’s special Cricket Edition packs.
The campaign’s promotional film depicts a man shaving while watching Gill ads on his phone. He offers unsolicited batting advice, only for Gill to appear and challenge him to a game, inviting viewers to participate by purchasing the promotional packs.
Capri Loans
Capri Loans – Shubman Gill Brand Endorsements
Capri Loans, a prominent non-banking financial company (NBFC) in India, has partnered with Indian cricketer Shubman Gill to enhance its brand presence. This collaboration aims to leverage Gill’s rising popularity and youthful image to connect with a broader audience, particularly the younger demographic.
By associating with Gill, Capri Loans seeks to reinforce its commitment to empowering individuals with accessible financial solutions, aligning with the cricketer’s dynamic and aspirational persona.
Bajaj Allianz
Bajaj Allianz – Shubman Gill Brand Endorsements
Shubman Gill is associated with Bajaj Allianz, one of India’s leading insurance companies. His collaboration with the brand aims to promote financial security and smart investment choices, resonating with young professionals and cricket enthusiasts.
Through this partnership, Bajaj Allianz utilises Gill’s credibility and popularity to highlight its range of insurance solutions, reinforcing the importance of financial planning in today’s dynamic world.
Shubman Gill’s endorsement portfolio includes a partnership with Coca-Cola, one of the world’s most iconic beverage brands. His collaboration aligns with Coca-Cola’s energetic and youthful brand image, making him a perfect fit to connect with the younger generation. Through this association, Gill helps promote the brand’s refreshing appeal, reinforcing its presence in India’s vibrant sports and lifestyle culture.
MRF
MRF – Shubman Gill Brand Endorsements
Shubman Gill has signed a bat sponsorship deal with MRF, joining the league of cricketing legends like Sachin Tendulkar and Virat Kohli. This partnership highlights Gill’s growing stature in the cricketing world, as MRF is known for endorsing top-tier batsmen. With the MRF logo on his bat, Gill reinforces his association with excellence, power, and performance on the field.
Tata Capital
Tata Capital – Shubman Gill Brand Endorsements
Shubman Gill is the brand ambassador for Tata Capital, a leading financial services company in India. His association with the brand aligns with Tata Capital’s promise of “Count on Us,” emphasizing trust, reliability, and financial empowerment. Through this partnership, Gill helps promote the company’s wide range of financial products, resonating with young investors and professionals looking for secure and smart financial solutions.
Shubman Gill is associated with Wings, a brand known for its high-quality audio and wearable tech products. As the brand ambassador, Gill represents Wings’ commitment to innovation, style, and performance—qualities that align with his persona on and off the field. His collaboration with Wings helps the brand connect with young, tech-savvy consumers who seek premium audio experiences and cutting-edge gadgets.
The Sleep Company
The Sleep Company – Shubman Gill Brand Endorsements
Shubman Gill is the brand ambassador for The Sleep Company, known for its innovative and comfortable sleep solutions. His association with the brand highlights the importance of quality rest and recovery, especially for athletes and active individuals.
Through this partnership, The Sleep Company reinforces its commitment to providing scientifically designed mattresses and ergonomic products that enhance sleep quality and overall well-being.
Conclusion
Shubman Gill’s journey in Indian cricket has been amazing. He is known for his stylish batting, consistent performances, and charming personality, which have made him not only a cricket star but also a favorite for brand endorsements. From fitness and technology to luxury and finance, Gill works with top brands, showing his wide appeal and growing influence.
He charges around ₹4 crore for each endorsement deal, making him a highly marketable athlete. Big brands like Nike, Coca-Cola, MRF, JBL, and MuscleBlaze have partnered with him, proving his popularity across different industries. As he keeps performing well in cricket, his brand value is expected to grow even more.
Shubman Gill is more than just a cricketer; he is a youth icon, a role model for young athletes, and a powerful brand ambassador.
Shubman Gill is a talented and rising star batsman in the Indian national cricket team.
Shubman Gill is the brand ambassador of which companies?
Shubman Gill endorses several major brands, including Nike, Tata Capital, My11Circle, TVS, Coca-Cola, MuscleBlaze, Fiama Men, ITC Engage, beatXP, Gillette, Capri Loans, and more.
What makes Shubman Gill a rising star?
His consistent performances, elegant batting style, and potential for long-term success mark him as a rising star.
Why is Shubman Gill attractive to brands?
His youth appeal, talent, clean image, and growing popularity make him a desirable brand ambassador.
Is Shubman Gill the brand ambassador of Nike?
Yes, Shubman Gill is a Nike-sponsored athlete. He has been seen wearing Nike apparel during training sessions and public appearances. While the Indian cricket team has an official kit deal with Adidas, Gill’s association with Nike is a personal endorsement. This means he promotes Nike independently, not as part of the team sponsorship.
According to reports, Nike, the biggest footwear manufacturer in America, is cutting employees in its technology branch. The corporation has acknowledged the layoffs, according to Reuters, but it has not yet revealed how many staff would be affected.
The corporation disclosed that the layoffs are a component of a larger restructuring initiative. According to the article, the business has announced that it will contract with other contractors to handle some of the tech-related tasks.
The layoffs coincide with Nike CEO Elliott Hill’s ongoing efforts to restructure the organisation’s operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike’s product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.
Reasons for the Layoff
According to a media source, Nike is laying off some of its technology division employees, according to an email from a Nike spokesperson. The number of workers impacted by the layoffs is not disclosed by the spokesperson.
He added that Nike intends to use a few outside vendors to handle the tech-related tasks. Nike has had to contend with dwindling revenue forecasts; the company’s fourth-quarter estimate indicates a more severe decline than anticipated.
With competitors gaining ground in the sports apparel sector, the corporation is trying to re-engage with changing consumer demands and streamline processes.
The layoffs coincide with Nike CEO Elliott Hill’s ongoing efforts to restructure the organisation’s operational and leadership strategies since taking over in October 2024. In an effort to promote innovation in Nike’s product selection and rekindle consumer enthusiasm, Hill recently announced a number of top management moves.
Layoffs have Become a New Normal for Bigger Players
This layoff announcement coincides with employment cuts by a number of multinational corporations, such as Amazon, Intel, and Goldman Sachs. Such developments are happening mainly owing to the growing impact of artificial intelligence (AI) and uncertainties in the global economy. Intel is getting ready for a massive restructure following a large financial loss in 2024.
Similarly, Amazon also plans to eliminate about 14,000 administrative roles in order to save $3 billion yearly.
Companies are increasingly focusing on cost optimisation and automation as a result of the rapid growth in AI adoption. This adoption is resulting in job losses across a number of industries.
Goldman Sachs is also getting ready to lay off employees, with intentions to trim staff by 3–5% after an annual performance review. About 150 junior banker positions were recently cut by Bank of America; nevertheless, the majority of impacted workers were offered opportunities outside of investment banking.
Given the unpredictability of the world economy, more businesses might do the same in the months to come.
If you are an adventurer, a good pair of sneakers is a must for you in your life. The best part is that it can be worn with any kind of clothes that you decide to deck up with. You can never go wrong with sneakers as they are comfortable and stylish enough to lift your style quotient. Sneakers can be worn with almost anything; they are extremely versatile, and the comfort that they provide is unmatched.
When we talk about sneakers, sports shoes, apparel, or sportswear, two prominent brand names ring almost together. They are none other than Nike and Adidas. These two renowned multinational corporations from two different continents – the USA and Europe- have been hot favorites in the category of sneakers and sportswear forever. Almost everyone has an idea or has at least heard of these two brands. Furthermore, growing in the same niche, Nike and Adidas have always been obvious competitors/rivals in their space. Both of them focus on sportswear, and the shoes are what they specialize in. However, over the years, both the US and German sports labels have maintained two recognizable brands around the world. Yes, financially, Nike is known to be much larger than Adidas, but the latter’s performance has been better over recent years.
Both companies have a long history of producing high-quality athletic gear, footwear, and accessories, and have gained a loyal following of customers who appreciate their commitment to innovation, performance, and style. But when it comes to choosing between these two powerhouses, which one comes out on top?
In this blog, we will explore the differences between Adidas and Nike, taking into account factors such as history and growth, technology, business model, plans, and more. Whether you’re a seasoned athlete or just looking for stylish casual wear, this comparison will help you determine which brand (Nike or Adidas) is the better fit for you.
Adidas vs Nike
Comparison Between Nike and Adidas:
Category
Nike
Adidas
Founders
Phil Knight (track athlete) and Bill Bowerman (track coach) in 1964
Adolf Dassler and Rudolf Dassler in 1924 (split in 1949; Adidas by Adolf)
Origin Name
Originally “Blue Ribbon Sports”; renamed to Nike in 1971 (named after the Greek goddess of victory)
Originally “Dassler Brothers Shoe Factory”; renamed to Adidas in 1949
Trademark Tagline
“Just Do It” (introduced in 1988)
“Impossible is Nothing” (launched in 2004)
Brand Image
Youthful, innovative, performance-driven, with a strong celebrity-athlete focus
Classic, sustainability-oriented, comfort and heritage-driven
Product Quality
Known for cutting-edge technology, performance features, and durability
Known for comfort, style, classic appeal, and performance for athletes
Founded in 1964 as Blue Ribbon Sports, officially changed to Nike in 1971.
Founded in 1949 in Germany, became a global brand in the 1970s and 1980s.
Growth
Rapid growth in the 1970s and 1980s with the introduction of innovative technologies such as Air cushioning and the “Just Do It” advertising campaign.
Strong growth in the 1970s and 1980s with the introduction of classic designs and innovative technologies.
Market Expansion
Strong presence in North America and Europe, as well as growing markets in Asia, Africa, and South America.
Strong presence in Europe and North America, as well as growing markets in Asia and South America.
Adidas History and Growth
Adidas is the largest sportswear manufacturer in Europe and the second-largest in the world after Nike. Formerly known as “The Dassler Brothers Shoe Factory”, the company was founded by Adolf Dassler and Rudolf Dassler in 1924. The founders, being sports enthusiasts, began to make sport-oriented shoes that could improve the performance of athletes in any sport.
Later in 1949, the two brothers broke their relationship, which led to the creation of Adidas by Adolf Dassler and Puma by Rudolf, making them the biggest business rivals at that time. Adidas was named after the initials of Adolf Dassler’s while the logo of three stripes was taken on as a shoe design on the company’s shoes for better comfort.
In the 1970s and 1980s, the company continued to grow with the introduction of innovative technologies and a strong commitment to sustainability. In the 1990s and 2000s, Adidas expanded into international markets and made several acquisitions to further strengthen its position in the sportswear industry.
In 2017, Adidas made an annual revenue of 21 billion euros and had a brand value of 16 billion U.S. dollars in 2024. In the same year, Adidas employed 5,888 people worldwide and generated 50% of its sales in the footwear category. Adidas is much smaller than Nike in terms of what its customers are looking for and trying to find a bigger audience in North America. With their motto “Impossible is nothing,” Adidas’ net revenue as of 2024 is €23.7 billion.
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Adidas was started by two brothers – Adolf (“Adi”) Dassler and Rudolf Dassler began the company together before splitting; Rudolf went on to create Puma.
Nike History and Growth
Nike is an American multinational company that is the world’s largest athletic shoe and apparel manufacturer and supplier. Originally known as “Blue Ribbon Sports,” it was founded by Bill Bowerman and Phil Knight, who was a track athlete in 1964 before becoming Nike in 1971. The name was taken from Nike, the Greek goddess of victory. The company was first established as a distributor for the Japanese shoemaker Onitsuka Tiger. Bowerman then made his first shoe for Otis Davis, who later went on to win two Olympic gold medals in 1960.
Blue Ribbons Sports sold 1300 pairs of Japanese running shoes with a gross of $8000. Its first advertisement gave its tag name as “There is no finish line,” which was changed to “Just do it” in 1988. As per the statistical records of 2024, Nike’s revenue is $51.362 billion and leads the world as the number one brand in the sports business.
Nike experienced rapid growth in the 1970s and 1980s with the introduction of innovative technologies such as Air cushioning, as well as the “Just Do It” advertising campaign. In the 1990s and 2000s, the company continued to grow through international expansion and acquisitions of other brands.
When it comes to Nike, it is the most valuable sports brand in the world, especially in North America. Unlike Adidas, Nike’s first target audience is the people of North America, and they also have strong marketing and sponsorship agreements to back it. Making it the reason behind Nike getting 30.57 billion euros in revenue in 2017. In 2006, however, Nike was still the leader with 13.44 billion euros while Adidas made 10.08 billion euros. In 2015, Nike also won the bet against Adidas and became the next exclusive provider of uniforms to the NBA. Nike’s total global revenues were reported to be $51.36 billion as of 2024.
ZoomX is a cushioning foam developed by Nike that is used to provide lightweight, responsive, and durable cushioning in running shoes.
Boost technology is a cushioning system used in Adidas sneakers to provide energy return and comfort.
Material
ZoomX is a foam material made of a proprietary blend of foam materials.
Boost is made of thermoplastic polyurethane (TPU) pellets that are fused to form a foam.
Nike Technology
Nike uses lighter materials to make its shoes lightweight, and they are made of polyester, rubber, and cotton. With that, it uses ZoomX technology, so that consumers can experience good speed while running. Nike shoes have holes in their toe cap, which makes them breathable and hygienic for feet as well. Nike shoes provide amazing designs. Nike does make more business than Adidas, but the customer reviews have deteriorated, and there has been no innovation that has been as big as Yeezy’,s which is under Adidas.
Adidas Vs Nike – Comparison between Adidas Ultra Boost and Nike Air VaporMax
Adidas Technology
Adidas always believes in putting quality over quantity and gives more importance to customer satisfaction. Adidas talks to many athletes about their preferences and comfort to implement them into their design. This was the reason for them to innovate Boost technology, which is an innovative cushion technology that includes a TPU (Thermoplastic Polyurethane) that compresses under pressure.
Adidas shoes weighed a little more than Nike shoes. The shoes consist of a full-length midsole and make it feel like a cushion-type material is present while wearing them. It focuses more on comfort and gives out more energy on every single stride. It also provides run-toe padding for its shoe models for comfort. This instantly bounces back to its original form, and in shock prevention, which helps the athlete in a more consistent run. Some of the famous shoes made by Adidas are the Y-3 collection, Ultra Boost, Gazelle, Supernova, etc.
Nike operates on a wholesale model, where it sells its products to retailers, who then sell them to consumers. Nike also sells directly to consumers through its own retail stores and e-commerce platform.
Adidas operates on a mix of wholesale and direct-to-consumer models, where it sells its products through retailers, its retail stores, and its eCommerce platform.
Nike Business Model
Nike is a leading sports apparel manufacturer that has ruled the industry for some decades now. The main focus of Nike has been an aggressive approach toward building strong and promising networks and partnerships with celebrity athletes. To quote an example, the exclusive contract that the company bagged with Michael Jordanwhen the latter signed it in 1984. This grew to be one of the most iconic partnerships in the sportswear industry and has benefited both of them. On one hand, Michael Jordan witnessed tremendous growth in his net worth, and on the other hand, it gave Nike a lead and a total monopoly in the basketball sneaker business. Besides, it also helped increase the overall demand for common stock ownership.
The American sportswear brand has already shifted from traditional media advertising and is hugely focused on social media advertisements and campaigns. Nike concentrates on the athletes who display a high ROI based on their social media profiles. Furthermore, the company chooses the teams that are the most talked about and displays the most engagement based on the core fans on their social media accounts.
Nike has largely focused on digitalization ever since it saw all the growth opportunities it could enjoy there. It has revamped its marketing and products to embrace the age’s demands. For example, it rolled out the FuelBand, a $150 electronic bracelet, designed to measure a person’s movements throughout the day, whether he/she is engaged in sports, swimming, jogging, or walking. This is a clear nod towards developing a digital force that Nike is aiming for now. One other thing that the company is eyeing is to reduce production costs and make its products environmentally friendly. Flyknit Racer is an exemplary product from Nike in this line.
Nike and Adidas Business Model Comparison
Adidas Business Model
Adidas’s business is inclined towards creating innovative products that are crafted to suit the needs and increasing demands of the consumers. Adidas doesn’t believe in forming partnerships and invests less in its product endorsements. Instead, the company is more focused on creating value by building products that are high in performance and are created with an eye on the specific needs of commoners and athletes. Furthermore, it also concentrates on its production rate, the available infrastructures, and the latest technologies that it can adapt, which Adidas constantly re-evaluates and expands. Moreover, the brand also puts efforts intoreducing the complexity on a group level by streamlining the global product range. Consolidating the base of the warehouse and harmonizing above-market service are some other things that Adidas is often involved in.
Adidas aims to deliver the best-branded shopping experiences at all consumer touchpoints. The company has also brought in innovative speed models in the supply chain, which help it respond quickly to consumer needs. These are some of the Adidas strategies that have motivated investors from all around the world to purchase Adidas common stock. Besides, the company has also shown promising growth here for many years now.
Is Nike more successful than Adidas
Marketing/Branding Strategies of Nike and Adidas
Category
Nike
Adidas
Marketing Focus
Nike has a strong focus on sports and fitness and targets athletes and fitness enthusiasts through its marketing campaigns.
Adidas has a similar focus on sports and fitness and targets athletes and fitness enthusiasts. However, it also targets fashion-conscious consumers through collaborations with fashion brands and designers.
Advertising
Nike’s advertising campaigns often feature high-energy, motivational content that focuses on the connection between sports and personal empowerment.
Adidas also uses high-energy, motivational content in its advertising campaigns, but it also highlights the fashion-forward aspect of its products through collaborations with fashion brands and designers.
Marketing/Branding Strategies of Nike
On diving into the marketing strategies of Nike, the first thing that will pop up in your mind is the dominant hold of the market that Nike exercises. The brand believes in maintaining a strong brand image, where it is prominently remembered as a sportswear brand. Nike is capable of pulling it off with the help of numerous smart marketing strategies that the brand implements. Here’s a quick look at all the key marketing strategies of the brand:
Positioning of Products: Throughout history, Nike has positioned its products with utmost care. For example, it sells “athletic shoes” for the sportsperson, which helps it capture the niche market easily. Going by the market segmentation of Nike, the company targets athletes, sportspersons, and others who are eager to lead a sporty or healthy lifestyle.
Creative Ability of Storytelling: Nike has heavily relied on its storytelling abilities. The brand, as it was founded by athletes, also has an authentic background or a credible story that backs it up. Yes, Nike founder Bill Bowerman is the person who first implemented this incredible idea of telling real stories. Back then, he was a track and field coach during Nike’s initial days when Bill wrote stories for his products that helped the company connect with its audiences.
A Focus on Social Media Marketing: As soon as Nike discovered that most of its audience was there on social media platforms, the brand decided to target various social media platforms. This helped Nike witness rapid growth in social media platforms and revenues. Here are some key highlights of the social media strategies: It focuses on user-generated content, Nike works out collaborations with celebrities, the company often engages with the users on social media, Nike attracts influencers and allows them to promote the brand.
Makes for Easy and Hassle-free Purchasing via its Website: Nike has decided to build an easy and effective website that categorizes all the products neatly in an easy-to-use interface. The website of Nike brings out the bold and fearless attitude of Nike users, which Nike boasts of. Nike also has smart product recommendations on its website, which makes it easy for purchasers to make their own decisions.
Loyalty Program: Nike has a loyal group of over 100 million members who have been recorded to have spent 3X more time on their website than the guest buyers. Nike used this data to stress their loyalty programs and has magnified their loyalty programs.
Adidas has rapidly progressed in the past few years by utilizing smart marketing strategies. The brand has notably grown at a rate of 17.6%, thereby adding nearly $5.8 bn since 2015, when compared to Nike’s addition of $4.3 billion at an average rate of 6.8%. Here’s a list of all that Adidas leverages, which helps keep the brand ahead of its peers:
Digital Marketing Strategy and Technical Advancements: Adidas’ straightforward digital marketing strategy and its laudable implementation are the power behind its success. A fast-growing eCommerce channel, digital production processes, and the quick adoption of technological advancements help the company gain a considerable amount of revenue, along with helping it engage with its consumers.
The pace of Production: Adidas boasts of its speed of production, which is completely digitalized and empowered with the latest technology of 3d printing and robotics at Speedfactory in Ansbach.
Relationship with the Customers: Adidas’ customer relationship is unparalleled. The company is there on the leading social media channels and keeps a constant engagement alive with its customers.
Commendable Collaborations and Partnerships: Adidas calls in creativity. The company opens its doors and lets out an open call for all the sportsmen and other consumers from all around the world who have a creative bent to collaborate with the brand. The “Calling All Creators” campaign is one illustrious example of such initiatives of the brand. Furthermore, Adidas also collaborates with renowned football players, singers, and athletes to inspire its consumers and target customers.
Strategic Cities of Operation: The cities that Adidas has decided to run its operations in include London, Los Angeles, New York, Paris, Shanghai, and Tokyo, which have been strategically important for its growth.
Adidas Ad
Revenue of Nike and Adidas
Category
Nike
Adidas
Revenue (2024)
$51.36 Billion
$25.53 Billion
Revenue Growth
0.28% YoY
11% YoY
Major Markets
North America, Europe, and Asia Pacific
Europe, North America, and Asia Pacific
Brand Value Comparison of Nike and Adidas Worldwide From 2020 to 2023
Nike Revenue
Nike has bagged in revenues close to $51.36 billion in FY23- 24. Nike has recruited and has over 79,000 employees working for them as of 2024. It is clear that Nike is the biggest sportswear brand and is a market leader to whom most of the other brands operating in the segment look up. Nike has recruited and has over 79,000 employees working for them as of 2024. It is clear that Nike is quite big and is a really strong competitor of brands that deal with sportswear.
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Fun Fact – Nike’s headquarters has a running track inside it – True to its roots, Nike’s Oregon campus includes top sports facilities.
Adidas Revenue
Adidas’ revenues have been reported at $25.53 billion in FY23- 24. Adidas has an employee strength of over 62,000, which was last reported in 2024. Adidas is one of the largest players operating in the sportswear segment, giving strong competition to Nike.
Nike operates a mix of in-house and outsourced production, with a majority of its products being manufactured by contract factories in Asia.
Adidas also operates a mix of in-house and outsourced production, with a majority of its products being manufactured by contract factories in Asia.
Suppliers
Nike sources raw materials and components from a network of suppliers worldwide.
Adidas also sources raw materials and components from a network of suppliers worldwide.
Nike Production and Suppliers
Although Nike is an American company, just like its competitor, the shoes are not made in its own country. It has over 523 factories spread in over 41 countries, and shoes and made mostly in China and Vietnam. Chinese manufacturers supply 23% of all Nike production, while Vietnam contributes 16% of Nike’s total production, which mostly consists of creating apparel and footwear.
Adidas Production and Suppliers
All the shoes from the brand Adidas are specially made in China, India, Atlanta, Indonesia, Thailand, Vietnam, Turkey, Germany, and Atlanta States. Adidas has over 500 factories in over 55 countries. The majority of shoes are made in countries situated in Asia, like Vietnam, Indonesia, and China. Vietnam produces 44% of all Adidas footwear, followed by Indonesia at 25% and China at 19%.
Cool Factor of Nike and Adidas
Category
Nike
Adidas
Collaborations with Musicians
Nike has collaborated with musicians, including Kendrick Lamar and Drake, on exclusive product collections and marketing campaigns.
Adidas has also collaborated with musicians, including Kanye West and Pharrell Williams, on exclusive product collections and marketing campaigns.
Collaborations with Celebrities
Nike has collaborated with high-profile celebrities, including LeBron James and Serena Williams
Adidas has also collaborated with high-profile celebrities, including James Harden and Kylie Jenner
The cool factor here refers to the collaboration with music and celebrities or other influencers. Adidas seems to be winning in this category as its athleisure collaborations with Kanye West and Beyoncé as compared to Nike’s more sports-focused approach with sponsoring some of the biggest names in the sports category like Serena Williams, Roger Federer, Tiger Woods, Kobe Bryant, and Lebron James, have created some noise.
With athleisure becoming a new trend, Adidas is trying to win the market by this approach. Kanye West is the best example of this because, with the help of Adidas, he has now built a billion-dollar Fashion Empire through his sneaker brand Yeezy.
Michael Jordan with Nike Jordan Sneakers
Nike’s main collaboration till now has been with the basketball veteran Michael Jordan, whose Air Jordan line of trainers holds the top spot for celebrity sneaker brand, generating more than $3 billion in sales every year. But the first Jordans were launched in 1985, which is why it has lost their cool factor. The Celebrities that support Adidas are David Beckham, Pharrell, and Novak Djokovic, while Nike’s supporters are Drake, Roger Federer, Cristiano Ronaldo, etc.
Nike vs Adidas: Sports Sponsorship
Feature
Nike
Adidas
Sports Sponsorships
Nike has a strong presence in the world of sports through sponsorships of high-profile events and teams, including the NFL, NBA, and FIFA World Cup.
Adidas also has a strong presence in the world of sports through sponsorships of high-profile events and teams, including the UEFA Champions League, MLS, and the Olympics.
Athlete Endorsements
Nike has a long history of partnering with high-profile athletes and sports teams to promote its products.
Adidas also has partnerships with high-profile athletes and sports teams to promote its products.
Sports sponsorship has been the main activity of both companies and has a history of being a part of numerous famous sports events. Nike is known to be the main provider of apparel, footwear, and uniforms of the NBA league most of the time.
In 2018, however, Adidas sponsored way more than Nike in the Football World Cup. Where 12 teams wore the brand Adidas, 10 teams signed up for Nike. Adidas boasts the current World Cup holders, Germany, along with Argentina, Spain, Belgium, Colombia, Egypt, Iran, Japan, Mexico, Morocco, Russia, and Sweden.
Both companies have always competed on who will get to sponsor more teams, especially in events like the FIFA World Cup, the Olympics, and NBA basketball games.
Nike has announced plans to become more environmentally sustainable and expand its digital presence, including the use of augmented reality and personalization technology.
Adidas has announced plans to increase its focus on sustainability and to invest in technology and innovation to enhance the consumer experience.
As with previous years, Nike is pivoting on its digital and DTC segments. The company is currently hoping to make 50% of its operations digital by 2025. On the other hand, climate neutrality is one of the primary things that Adidas is currently aiming at. The brand is presently looking to achieve climate neutrality in its operations by 2025 and bring in climate neutrality on a global scale by 2050.
Nike Vs Adidas: The Real Battle
To be specific, there is this timeless battle going on between the best sneaker brands in the world. The battle started in 1976 when Nike hired John Brown and Partners as their advertising agency. Nike emerged with aggressive marketing and took 60% of the athletic shoe market in its grasp. When 1988 Nike started the ‘Just do it‘ campaign, it became one of the best ad slogans of the 20th century.
In recent times, more specifically in 2014, Adidas partnered with Ye, formerly known as Kanye West, who claimed that his Yeezy Boost shoes are way better than Jordan Sneakers. This thing escalated the rivalry as people started leaning towards Yeezy’s.
Adidas Yeezy
The sponsorship battle between the two is another issue. With Nike sponsoring some of the biggest names in the sports category, like Serena Williams, Roger Federer, Tiger Woods, Kobe Bryant, and Lebron James, it has created some noise.
On the other hand, Adidas also showed that it is not less than anyone by sponsoring some of the biggest names from the sports and music industry. David Beckham, Novak Djokovic, Lionel Messi, Beyoncé and Ye. Reports claimed that Nike pays more to their sponsors than Adidas, though.
The fight between the two sneaker giants didn’t stop even during COVID-19 when Nike started creating face masks while Adidas created face shields.
Which Is Better Adidas or Nike?
Nike and Adidas are the two heavyweights when it comes to footwear and sports accessories. Regardless of where we come from, most of us are attracted to these brands when it comes to sports accessories, including footwear and more.
Nike certainly has an edge over its archrival Adidas. The former has owned 38.23% of the market share when it comes to sportswear. The advertisements and powerful celebrity endorsements including that of Michael Jordan, help Nike steer past its German counterpart, Adidas, in terms of market share, revenues, and profits. The latter, though owning a lot less of the market share than Nike, is well-revered among the world of its users for its quality and longevity. Founded in 1949, the German brand is one of the oldest operating players in the sportswear industry. However, it is the split between the brothers, Rudolf and Adolf Dassler, of the Dassler Brothers Shoe Factory that resulted in the making of two different brands – Adidas and Puma. This not only divided the brothers and their business for the rest of their lives but also divided the revenues they collected. However, it is also this split of the brothers that gave the world two of the leading brands in the footwear and sportswear industry for the users.
In short, it is subjective to choose between Adidas vs Nike as it depends on personal preference, which brand is better between Nike and Adidas. Both companies have a strong reputation and offer high-quality products. Ultimately, it is up to the individual to determine which brand aligns with their style, comfort, and performance needs.
Adidas has always managed to keep its audience in consideration to design its products undoubtedly, but Nike has always had an upper hand in innovation and design when it comes to the sports market.
What are the differences between Nike and Adidas?
Both Nike and Adidas are major players in the sportswear industry, but they have some distinct differences in terms of design, technology, and brand image. Nike has a reputation for being innovative and heavily focused on performance and technology, while Adidas is known for its classic and iconic designs and a strong focus on sustainability.
Adidas or Nike, which brand offers better quality products?
It is subjective as both Adidas and Nike offer high-quality products. It ultimately depends on personal preference, individual needs, and product type.
Who makes more money Nike or Adidas?
Nike typically generates higher revenue than Adidas. In 2024, Nike’s revenue is approximately US $51.36 billion, while Adidas’s revenue is approximately US $25.53 billion.
What is the Nike brand value?
In 2023, the Nike brand’s worth was $71.6 billion.
Is Nike an American company?
Yes, Nike is an American multinational conglomerate that was founded in Eugene, Oregon, US, on January 25, 1964.
What does Adidas stand for?
The name “Adidas” stands for the abbreviation of the name of Adolf Dassler, the founder of Adidas.
What is the Nike market share?
Speaking of Nike’s market share, the US sports apparel and shoe manufacturing company presently dominates the sportswear with approximately around 38.23% of the market share.
Which brand is more popular, Nike or Adidas?
Nike is typically considered more popular than Adidas. Nike has established itself as a global brand and household name, with a strong presence in sportswear and a reputation for quality products. However, Adidas has also gained significant popularity and recognition, particularly in recent years, and has a loyal customer base. The popularity of these brands can also vary regionally and culturally.
Nike or Adidas which is better?
Choosing between Nike and Adidas depends on what you’re looking for. Nike is known for its innovation, cutting-edge performance gear, and powerful athlete endorsements, making it a favorite among serious athletes and trendsetters. Adidas, on the other hand, stands out for its comfort, sustainability efforts, and timeless style, appealing to both athletes and everyday users. If you prioritize high-tech performance and bold branding, Nike might be better; if you value comfort, eco-friendliness, and classic design, Adidas could be your top pick.
Nike is one of the most well-known names in athletic footwear, apparel, and accessories. Among the many things that have contributed to Nike’s success, the company’s well-thought-out business model stands out as the main cause for its continued success in the marketplace.
This article will explore the business model and revenue model of Nike in detail, helping readers understand how it has been important in the company’s rapid rise to the top.
About Nike
Founded in 1964 under the name Blue Ribbon Sports, the company was later renamed after the Greek goddess of success. It was founded by former University of Oregon track and field athlete Phil Knight and his coach Bill Bowerman.
Back then, all they did was distribute the shoes of the well-known Japanese company Onitsuka Tiger. Nike made around $8,000 in their first year of operation. With stores in 170 countries, the brand’s net worth is $191.79 billion now. There is little question that the net worth of the corporation will keep increasing in the future, based on trends from the past few years. Currently, the company’s main office is situated in Beaverton, Oregon, USA.
Athletes and customers throughout the world have been attracted by Nike’s innovative products and designs, marketing and branding strategy, and retail and distribution methods. Another essential component of Nike’s business model is the company’s approach to marketing and branding. The corporation has long been an investor in celebrity endorsements, teaming up with A-list athletes and actors.
Nike has a long history of partnering with legendary players, such as Serena Williams of tennis and Michael Jordan of basketball, solidifying its position as a symbol of excellence in sports. The retail and distribution channels are also crucial to Nike’s business model. To meet every requirement of its customers all around the world, the company runs both physical stores and an effective online marketplace.
Nike makes sure its products are available to people all over the globe with its strong retail presence. To further broaden its reach, Nike collaborates with a network of authorized retailers and distributors, in addition to its locations.
By controlling several revenue streams and continuously pushing the limits of innovation and design, the worldwide sportswear giant Nike has become an industry powerhouse. The foundation of Nike’s revenue streams is, without question, footwear sales. Nike has won over millions of customers all over the globe with their extensive assortment of fashionable lifestyle shoes and performance-driven sneakers.
The brand has become a preferred choice for footwear across every group due to its capacity to accommodate the diverse requirements of athletes and trendy individuals. Although shoes are Nike’s main product, the company has also found success in the apparel and equipment markets. Athletic performance and comfort are two primary goals of Nike’s extensive line of athletic apparel, which includes outerwear, accessories, and sportswear.
Additionally, Nike manufactures a wide variety of sports goods, such as soccer balls, basketballs, and training apparel. Nike has strengthened its position in the athletic goods industry and accessed new sources of income by expanding its product range. In addition to selling shoes, clothes, and equipment, Nike also makes money by sponsoring sporting events and teams and entering into licensing deals with other businesses. Through these licensing arrangements, Nike can expand its reach even further by allowing other companies to utilize its distinctive logo and brand image on their products.
Another important revenue generator for Nike has been its relationships with world-class athletes, teams, and leagues. Nike not only increases its visibility but also solidifies its reputation as a symbol of genius and achievement by linking its name with the most renowned athletes in the world. Because of this, customer confidence and loyalty are boosted, leading to more sales.
Nike’s Revenue Worldwide From the Fiscal Years of 2013 to 2023
USP of Nike
“Just Do It” is Nike’s tagline and also its unique selling proposition. The brand has been using a powerful yet simple slogan, which conveys a message of empowerment, since 1988. Regardless of the obstacles people encounter, this USP encourages them to pursue their dreams and ambitions.
Nike SWOT Analysis
Nike SWOT Analysis
Nike Strengths
With a presence in almost every country on Earth, including the United States, the United Kingdom, Asia, and many more, Nike is unmatched as a global leader in athletic footwear and gear.
Nike has been named one of the world’s 50 most innovative corporations.
One way Nike stands out is through its unique products, which are recognized all over the world.
The firm has built its brand equity through its effective global business relationship-building.
Nike Weaknesses
The expansion of the company’s market share is hampered by the constant risk of competition.
Nike is more known as a sportswear and footwear label than a major player in the fashion industry.
Nike Opportunities
The development of new, highly profitable products, such as a sharper focus on eyewear, athletic apparel, etc.
Even in developing economies, Nike can open stores in tier 2 cities.
Open sports academies all around the globe to encourage talent and raise brand awareness.
Like its sporting division, Nike has room to grow in the fashion industry.
Nike Threats
Many different brands compete for consumers’ attention in the footwear industry.
Since it is an international brand, Nike is impacted by the ups and downs of national currencies.
A company like Nike regularly has to deal with the issue of counterfeit goods.
Other brands incorporate new approaches and innovations to directly compete with Nike.
Conclusion
If you want to see how to maximize money while still providing excellent customer service, look no further than Nike’s business strategy. Nike has been the world’s most popular sportswear brand for a long time because the company’s founders emphasized marketing and innovation from the start.
FAQs
Who are the founders of Nike?
Nike was founded by Phil Knight and Bill Bowerman in the year 1964.
What is the tagline of Nike?
The tagline of Nike is Just Do It which is also its USP.
What are the main components of the Nike Business Model?
Nike’s business model revolves around product innovation, strong brand presence, global supply chain management, direct-to-consumer sales, celebrity endorsements, and strategic marketing partnerships.
Apparels appeal to everyone. Be it clothes from Zara, jeans by Wrangler, or shoes from Converse, you have got a huge range to select from. But the youths from the early 80’s will never forget how crazy they were after Jordans. Yes, the same basketball shoe line that was produced by Nike.
As intriguing the story behind Air Jordan is, so is the tale of a co-founder of Nike, Phil Knight. The legend goes back decades and the honor still lives on. Phil Knight, the name that shines in the sports industry, along with his brand has covered several segments in the aforementioned market.
Besides being the co-founder of Nike, the largest athletic brand, Knight has several more qualities that would grab ears. Knight is a published author and also a philanthropist, who co-founded his company with Bill Bowerman, his former track coach from the University of Oregon.
Don’t just get all hyped up now, this article has a lot to talk about. Here’s all you need to know about the emeritus of Nike, Philip Hampson Knight.
How Phil Knight Grew Nike Into A Multibillion-Dollar Company And Became A Billionaire In The Process
Phil Knight – Biography
Name
Phil Knight
Birthplace
Portland, Oregon
Born
February 24, 1938
Nationality
American
Education
BBA (University of Oregon), MBA (Stanford University)
Born in Portland, Oregon on February 24, 1938, Phil is the son of Bill and Lota Clloy Knight. His father Bill, was an American lawyer who later switched to being a newspaper publisher.
His early childhood was spent in the neighborhood of Eastmoreland, Portland, while Knight attended Cleveland High School for his early studies. For further studies, Phil Knight went to the University of Oregon in Eugene and completed his BBA in 1959.
Entering the university, pushed him into preparing for a greater future. Knight participated in the well-known Oregon track and field program and became a sports journalist for the company called Oregon Daily Emerald, all while also being a member of the Phi Gamma Delta fraternity.
Phil Knight – Career
During the early days, upon entering his career life, Phil Knight worked as a public accountant with Coopers & Lybrand. He later switched his company and started working with Price Waterhouse in the same designation. Soon, Phil became an accounting professor at the Portland State University.
Phil Knight has even served a year in the Army on active duty, and seven years in the Army Reserve.
After completing his MBA from Stanford Graduate School of Business, he took a trip to Japan and secured distribution rights to Tiger brand running shoes for the western United States. For a year, until the first shoe samples arrived in the USA, Knight again worked as an accountant in Portland.
Upon receiving the shoes, Knight shipped two samples to his coach Bill Bowerman, with the hope of endorsement. In 1964, Bowerman who was impressed by the quality of these Japanese shoes, offered Knight to become a partner for Blue Ribbon Sports, now known as Nike.
Phil Knight – Personal Life
It was in the September of 1968 when Phil Knight married his wife Penelope Parks. The couple had met during the days when Phil was working at Portland State University. Together the couple have two children, Matthew and Travis.
Phil owns a home in La Quinta, California. He calls the Nike headquarters in Beaverton, Oregon, as his home address on the government records, though he stays in the house just outside Hillsboro.
Phil Knight also owns two private jets and a personal flight hangar at the Hillsboro Airport.
A serious tragedy hit the Knights in 2004 when beloved Matthew died during a scuba diving accident in El Salvador. Matthew was the eldest son of Phil and Penelope.
Brand Value of the Sports Company Nike Worldwide From 2016 to 2024
Phil Knight – Nike
Nike has gained a revenue of nearly USD 45 billion, today. But even the legendary sports brand had to start from dog days.
Originally named Blue Ribbon Sports, (BRS) Nike was founded on January 25, 1964. BRS at that time worked as the distributor of Japanese Tiger brand shoes and was operated from Eugene, Oregon. Phil Knight made his first sales from his car at track meets across the Pacific Northwest.
In the year 1971, on May 30, Blue Ribbon Sports was officially renamed Nike. The name was suggested by Jeff Johnson, who was the first employee of Nike. Johnson came up with this name as it depicts the name of a Greek goddess of victory.
The same year, Nike also had its swoosh logo ready by its side. The logo was designed by Carolyn Davidson, a graphic design student. Davidson had charged USD 35 for his efforts and the logo.
Although Nike markets products under its name, it even has covered the sports market with the brand names of Nike Golf, Nike Pro, Air Force 1, Nike Dunk, Air Max, Nike CR7, and more. It has subsidiaries that include Air Jordan and has also introduced widely appreciated designs, such as Jordan itself and Converse.
Throughout the years, Nike has owned many brands including Umbro, Cole Haan, Bauer Hockey, and Hurley International.
In 2016, Phil Knight stepped down from being Nike’s chairman and was succeeded by then-president and CEO Mark Parker.
Besides Nike, Knight owns Will Vinton Studios, currently known as Laika. Laika Studio released its first feature film, in 2009 which was a stop-motion movie, Coraline.
Phil Knight – Philanthropy
Phil Knight has donated over USD 1 billion to charity. Speaking of it, Knight has donated USD 500 million to the University of Oregon Health & Science Cancer Center. Similarly, he donated USD 400 million to Stanford University for the Knight-Hennessy Scholars graduate-level education program.
Phil Knight also donated USD 105 million to the Stanford Graduate School of Business.
Phil Knight – Awards and Recognition
In 1989 he received the Golden Plate Award of the American Academy of Achievement.
Phil Knight was inducted into the Oregon Sports Hall of Fame in 2000, for his Special Contribution to Sports in Oregon.
On September 7, 2012, Phil was inducted into the Naismith Memorial Basketball Hall of Fame, as a contributor. The Hall even recognized him as the driving force behind Nike’s financial support towards US basketball and its players.
2015 was the year when Phil was elected to the 2015 American Academy of Arts and Sciences membership class for his contributions to business, corporate, and philanthropic leadership.
Knight was then amongst the four UO alumni chosen to be on a notional Mount Rushmore for the university in 2020.
Phil Knight – Unknown Facts / Interesting Facts
Phil Knight has published his memoir Shoe Dog in 2016. This book spoke about the struggles and story of Nike while growing to become a multinational sportswear and sports equipment company. In his memoir, Knight even wrote his views on life and how it was changed following his entrepreneurial years.
Phil Knight was a middle-distance runner at Oregon and had his personal best of 1 mile (1.6 km) in 4 minutes, 13 seconds. The philanthropist has even won varsity letters for his track performances in 1957, 1958, and 1959.
When you really understand who you are, it enables you to fight and believe. -Phil Knight
FAQs
Who is Phil Knight?
Phil Knight is the co-founder of Nike Inc.
Who is the current CEO of Nike?
John Donahoe has been the CEO of Nike since 2020.
What does Nike mean?
The name was suggested by Jeff Johnson, who was the first employee of Nike. Johnson came up with this name as it depicts the name of a Greek goddess of victory.
Advertisements that persuade consumers to buy their products solely depend on touching their viewer’s emotional psyche and this does not come as a surprise. People make brand judgments based on emotions rather than information, according to studies, and emotional responses to advertising have a greater impact on a person’s desire to buy than the content of an ad.
According to Douglas Van, author of Unconscious Branding: How Neuroscience Can Empower (and Inspire) Marketing wrote, “The most startling truth is we don’t even think our way to logical solutions. We feel our way to reason. Emotions are the substrate, the base layer of neural circuitry underpinning even rational deliberation. Emotions don’t hinder decisions. They constitute the foundation on which they’re made!”
Such emotional sensitivity from brands, on the other hand, hasn’t always been the case. Advertisers were more interested in persuading their consumers through the use of comedy and sarcasm throughout the 1990s and early 2000s. In response to this, ‘Pereira & O’Dell’s‘ chief creative officer PJ Pereira said, “I think what’s happened is that the ad industry has spent the last decade celebrating bitterness and cynicism and being mean to people.
For a while, it was great because it was different from everyone else, and then it became a trend and people got sick of it. It wasn’t funny or interesting anymore. So when things started to pop with an opposite voice, the customers totally reacted.” Here’s a look at the best emotional advertising campaigns that will surely evoke emotion in you.
Advertisement Appeals means the ways of communication strategies used in the advertisement to attract the attention of the customers and affect their feelings so that they can take an interest in the product or service that they offer. Some of the most popular advertising appeals that work properly are:
Emotional Appeal- Sometimes consumers’ purchase decisions are based on emotional appeals. These emotional appeals mainly focus on trust, loyalty, kindness, love, and happiness. These kinds of ads make quite an impact on people when they use some powerful but peaceful music in the advertisement.
Musical Appeal- Music is a universal language. Advertisements take the help of music appeals to make the ad interesting so that it can stick to customers’ minds. Various ad jingles and catchy tunes have led to an increase in the consumption of products and services. It creates a positive impact on the mind of people.
Fear Appeal- Fear can make you do things that you don’t want to do. Advertisers take advantage of this thing for their products and services. They show what can happen if the customer doesn’t possess the product and people often falls for this appeal, thus increasing their consumption.
Favourable Price Appeals- Discounts or lower prices can easily attract the attention of people. There is hardly anyone who doesn’t like lower prices, so favourable price appeals are a good way to increase the consumption of their products.
Let’s take a look at some of the most famous emotional advertisements ever made by Top Brands.
Budweiser – “Stand By You”
Year-2018
Budweiser created this ad by distributing over 79 million cans of drinking water to US cities hit by natural catastrophes. We watch Budweiser employees hard at work getting the job done while listening to Skylar Grey’s moving cover of “Stand By Me”. It ends with one employee’s delight at watching their contribution on the evening news.
This emotional advertisement creates a poignant feeling within the audience, paving a way for them to really connect with the workers and in hand with the company. They have used the emotional appeal to make the ad heart-touching and showed that everyone is working hard to help the cities that are hit by natural catastrophes.
Coca Cola – “The Wonder of Us”
Year-2018
In this inspirational ad, an appreciation for the uniqueness of people is displayed throughout. We watch Cokes being consumed by a diverse group of dedicated consumers, each with their own appearance, activities, background, and tales of their own.
Similarly, the voice-over is done by a wide range of artists, emphasizing the value of variety. Coca-cola becomes a source of intimacy and connection, bringing in people from varied backgrounds and making an amalgamation of a single unit, Unity in Diversity.
The advertisement has used emotional appeal, where it showed that it doesn’t matter who you are, your skin colour, your gender identity, or the person you love, you are unique and that is beautiful.
Nike – “What will they say about you?”
Year-2017
This is one of Nike’s most motivational advertisements in recent times. It starts by introducing a young Arab woman who goes for a morning run. Her voice-over (in Arabic) mulls over what her judgmental neighbours have to say about her as she walks by them.
The voice-over encourages the listener to reach for more as comparable women’s stories (boxing, soccer, parkour) play out. The advertisement’s editing establishes a tempo that escalates to a climactic point that is intended to be the most stimulating.
POV shots are also used in the commercial, bringing us closer to the action and deeper into the commercial. Nike is very well known for its long history of producing effective and inspiring advertisements. An emotional appeal has been used in this advertisement to showcase the strength of people in a world that often judges.
Tanishq – Ekvatam
Year-2020
Although this advertisement by Tanishq made the headlines for all the wrong reasons, we definitely cannot overlook the beautiful message that the ad brings in. The commercial starts with a Muslim family throwing a baby shower for their Hindu daughter-in-law.
As the creative comes to a close, the expecting mother informs her mother-in-law that baby showers are not a tradition in their household. “But isn’t it a tradition for every household to keep their daughters happy?” her mother-in-law counter questions with a smile?
A magnificent convergence of two different religions, traditions, and civilizations, stated the ad’s description, but social media disagreed. After all of the uproar, the video’s creators decided to take it down.
Interfaith ads can be very tricky in these sensitive times, however, such bold and beautiful ads are very essential to constantly remind us of where we stand as a progressive society and how far we still have to go. The emotional appeal has been used in this ad and has shown two different religions beautifully union.
These were some of the examples of emotional advertising. Emotions like Compassion and love are powerful sources that have an impact on us in ways we don’t and cannot simply comprehend. They play with our psyche and cause us to experience a number of feelings at the same time. And this is exactly what commercial designers look for, to grasp that emotional point and make us go through a cognitive process. Although it plays with our minds and persuades us to connect with the band, it also enriches us and maybe even cathartic for some.
FAQs
What is an emotional advertisement?
Emotional advertising is an advertising technique used by brands to evoke an emotional appeal in consumers so that remember and share.
What is an example of emotional advertising?
Coca-Cola’s “Choose Happiness” campaign is a great example of emotional advertising.
How effective are emotional ads?
Many brands witnessed an increase in sales after their emotional advertising campaign.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byNike.
Sports is indeed a global medium of communication. It penetrates through cultures, nations, and divisions. It’s a long-standing consumer desire as well as a stimulus of human aspirations and development.
Individual effort, collaboration, respect, how to win, how to lose, and how to compete strongly and fairly are all valuable lessons learned via sports. In both good and terrible times, sports inspire, fascinate, and reward us. Sports is a fantastic industry to work in, and an even better one to run.
Nike has risen from a quiet small town, in Oregon to become the world’s leading sports footwear and clothing corporation. It all began with a shoe and a t-shirt. It is now a diverse and sophisticated multinational corporation. Nike is well recognised for its footwear, clothes, and accessories. It offers products under the Nike and Jordan brands, and also via its Jordan Brand and Converse divisions.
Nike – Company Highlights
Startup Name
Nike
Formerly Called
Blue Ribbon Sports, Inc.(1964–1971)
Industry
Apparel, Accessories, Sports equipment
Headquarter
Beaverton, Oregon, U.S.
Founders
Bill Bowerman and Phil Knight
Founded
January 25, 1964
Key People
Phil Knight (Chairman Emeritus), Mark Parker (Executive Chairman), and John Donahoe (President and CEO)
Nike is an American multinational athletic brand that designs, manufactures, promotes, and distributes footwear, clothing, training accessories, and service. Many of its merchandise are used for leisure or casual activities while being built for sports purposes.
The bulk of Nike’s products are made by independent contractors and sold directly to customers through Nike retail shops and online mediums, as well as through independent retailers, franchisees, and sales agents.
The company’s global headquarters are in the Portland metropolitan region, in Beaverton, Oregon, the United States. It employs about 44,000 people globally, and the company’s brand was valued at $19 billion in 2014, making it the leading name in the sporting world.
Nike sells its products under Nike Pro, Nike Golf, Nike+, Air Jordan, Nike Blazers, Air Max, and other brands, as well as subsidiaries including Hurley, Jordan, and Converse. Nike supports many popular professional athletes and sports clubs and teams throughout the globe, and its trademarks “Just Do It” and the Swoosh emblem is very well known.
Nike – Industry
The sports sector is becoming the world’s largest as more individuals participate in sports and leisure activities to improve and balance their stress, health and work regulation. It has become popular as an active and passive piece of recreation.
Customers are actively investing more in sportswear, with sportswear and accessories accounting for a substantial portion of the cost. Sport in the twenty-first century is an industry characterised by extremism. Market research is currently at the forefront of marketing sports products and accessories, as marketplaces throughout the world become highly competitive.
The worldwide sports equipment and accessories industry is booming, with the rapid acceptance of innovative technology and a willingness to adapt to demographic shifts. The sector is booming because of e-commerce, which is a prominent retail medium these days that allows users to experience all of the available sports equipment manufacturers. It is a one-stop store for all athletics equipment and products, increasing the marketability of worldwide athletic apparel.
Numerous established market participants in retail, e-commerce, sports shops, and wholesale, as well as many new startups, make the sports equipment and accessories industry extremely competitive. Growing consumer health consciousness is predicted to propel the growth of sports equipment throughout the forthcoming years. In addition, the emerging trend of following famous athletes will fuel the accessories industry.
The market for sports equipment and apparel was estimated to be $480 billion in 2021, with a CAGR of 7.2 per cent expected to reach $817 billion by 2026.
The word “Nike” was extracted from Greek mythology where Nike is the Winged Goddess of Victory. The ‘swoosh’ logo is derived from the goddess’s wing, and it represents the sound of movement, speed, drive and, strength.
Nike Logo
Nike’s very popular slogan says, “Just Do It.”
Nike – Founders
Bill Bowerman and Phil Knight founded Nike on January 25, 1964, which was then named “Blue Ribbon Sports”, and then it became “Nike”, Inc. on May 30, 1971.
Founders of Nike – Bowerman and Knight
Phil Knight
Philip Hampson Knight is a multimillionaire American entrepreneur. He, along with being the co-founder, is the former chairman and Chief executive officer of Nike. Forbes ranked Knight as the world’s 24th richest person on July 23, 2020, with his net worth being $54.5 billion.
In addition, he is the co-founder and CEO of Laika, a time-lapse film production company. Knight completed his education at the Stanford Graduate School of Business and the University of Oregon. He competed in track at the University of Oregon under Bill Bowerman, his coach and with him, he eventually co-founded Nike.
Bill Bowerman
William Jay Bowerman was a field and track coach in the United States and a co-founder of Nike, Inc. He coached 51 All-Americans, 31 Olympic competitors, 12 American record-holders, 22 NCAA winners, and 16 sub-4 minute milers in his time.
He despised the title of coach, yet during his 24 years at the University of Oregon, the Duck’s track and field team won every season except one, won four NCAA championships, and placed in the top ten in the country 16 times.
He helped Nike transition from being a supplier of other shoe brands to designing their shoes as a co-founder. He designed several of the company’s popular products, including the Cortez and Waffle Racer.
Nike – Startup Story
Nike’s roots may be traced all the way back to the year 1964 when Blue Ribbon Sports (Nike’s former name) was created. Phil Knight had recently finished his bachelor’s education at the University of Oregon, followed by a Master’s degree at Stanford University, giving him two life-changing encounters.
He ran for the University of Oregon track team, where he met Bill Bowerman, his team’s coach. Aside from his extreme rivalry, Bowerman was preoccupied with upgrading his running shoes and exploring various models on a constant schedule after learning from a local shoemaker.
Knight became the first runner to put Bowerman’s footwear to the check. Bowerman offered to bring one of his shoes and customise it with his own design, perceiving Phil as a comfortable and modest runner with someone to explore.
Knight accepted the invitation, and the shoes reputedly functioned so well that his colleague Davis grabbed them and won gold in the 400-meters track race in the year 1960 Olympics. According to him, Bowerman made the shoes for Otis Davis. Knight attended Stanford’s MBA school after graduating from the University of Oregon, where he wrote a thesis recommending that the manufacturing of running shoes be shifted from Germany to Japan, where labour costs were lower.
Knight put this theory to the test when he went on a trip to Japan shortly after graduation in 1962. He agreed to market the country’s famous Tiger shoes in the United States with a group of Japanese entrepreneurs.
Coach Bowerman endorsed Knight’s initiative, agreeing to an equal partnership with him for the ownership of their new firm, Blue Ribbon Sports, which was formed on January 25, 1964, in Eugene, Oregon.
After starting Blue Ribbon Sports, Knight evaluated the market for his foreign shoes by distributing them out of his car when he returned to America. Early on, it was clear that there was a demand for these less priced but still high-quality alternatives to Adidas and Puma, the industry’s heavyweights.
Nike – Vision, and Mission
Nike’s vision statement says, “To bring inspiration and innovation to every athlete in the world.”
Nike’s mission statement says, “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”
Nike’s business model revolves around creating and distributing athletic and sporting goods, such as footwear, apparel, and equipment – as well as certain services. Everything is under one of the world’s most well-known brands.
Customer Segment
Nike sells sports or athletic wear, footwear, and types of equipment. Nike’s market is divided into four primary sections, also in order of revenue, geographically:
China
North America
the Asia Pacific and Latin America
Europe, Middle East, and Africa
Customer-Seller Relationship of Nike
Customers’ interactions are almost entirely limited to self-service. The consumer will examine the brand or product online or offline at the store, purchase it, and put it to use. When necessary, there will be some engagement with a salesman. A FAQs section is also available on the official website, as well as customer service through phone, email, or live chat. Nike also offers Nike ID, a customisation service that tailors Nike items to the preferences of clients.
Value Proposition
Nike makes merchandise that encourages people to participate in sports. Their goods are significantly reliant on the brand’s quality, inventiveness, and prominence. This is the brand’s core, and it’s exactly what buyers want when they buy a pair of Nikes.
Nike has a wide range of products for several sports and hobbies. What counts to the audience, though, is getting a product that has been thoroughly researched and developed using the greatest raw materials and technology available. They also want to maintain the brand’s excellent reputation, which includes superstars like Michael Jordan, Tiger Woods, and Cristiano Ronaldo.
Cost Structure
Sales costs (mainly inventories and warehouses) account for more than $21 billion in annual expenditures for Nike. A further $3 billion is allocated to marketing, which includes spending for promotion and marketing, sponsor, marketing, brand events, and brand personality display. Over $500 million is spent each year on other general and administrative expenditures.
Nike is the world’s largest footwear and clothing retailer, with these sales accounting for the majority of their income. Although its sports footwear is developed with a large investment in technology and high products, the majority of its products are utilized regularly for recreation purposes.
Nike also provides balls, sunglasses, backpacks, gloves, digital gadgets, and other sports equipment and accessories, as well as recreational items for a variety of physical and outdoor activities.
In order of sales, the corporation targets women, men, young athletes, and children. Nike’s goods are divided into six groups: running, basketball, Jordan Brand, soccer, training, and sportswear (lifestyle products). Running, Jordan Brand and Sportswear are Nike’s most profitable segments.
Nike – Investments
Date
Organization Name
Round
Amount
Dec 2, 2021
AllStar Code
Grant
$500K
Oct 14, 2021
SpringHill Entertainment
Venture Round
–
Oct 14, 2021
The SpringHill Company
Private Equity Round
–
Nov 20, 2019
HandsFree Labs
Corporate Round
–
Mar 4, 2014
Reflektion
Series A
$8M
Oct 7, 2013
Grabit Inc.
Series A
$6M
Jan 4, 2011
Rock Health
Grant
$500K
Nike – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
RTFKT
RTFKT is a developer of custom sneakers designed for video game enthusiasts.
Dec 13, 2021
–
Datalogue
Datalogue uses artificial intelligence to automate data preparation.
Feb 8, 2021
–
TraceMe
TraceMe is a technology company connecting athletes, influencers, celebrities through new social media platforms.
Oct 11, 2019
–
Celect
Celect is a cloud-based, predictive analytics SaaS platform that helps retailers optimize their overall inventory portfolios.
Aug 6, 2019
–
Invertex
Invertex leverages 3D scanning to allow a customer specific e-commerce experience and create mass customization product lines.
Apr 9, 2018
–
Zodiac
Zodiac is a predictive customer analytics platform that helps marketers predict consumer behavior.
Mar 22, 2018
–
Virgin Mega USA
Virgin Mega USA is a virtual community that enables users to purchase and experience music products.
Aug 2, 2016
–
Umbro
Umbro is an English sportswear and football equipment supplier.
Oct 23, 2007
–
Converse
We make rad sneakers and apparel.
Jul 9, 2003
$309M
Hurley
Hurley is a big brand providing a large chain of Apparel
Feb 22, 2002
–
Nike – Competitors
Adidas, Skechers USA, Puma, New Balance, Steve Madden, and ASICS America are Nike’s competitors.
Child Labour Allegations – Nike was chastised in the 1990s for using child labour in factories it hired to make footballs in Pakistan and Cambodia. Despite taking steps to stop or at least limit the practice, Nike continues to outsource production to firms that operate in locations where child labour is difficult to avoid due to a lack of regulation and oversight. An investigation from 2001 revealed instances of child labour and bad working conditions in a Nike facility in Cambodia. The documentary followed six young women who worked 7 days a week, frequently for 16 hours.
Paradise Papers – Nike was one of the firms that utilised offshore entities to evade taxes, according to the Paradise Papers, a series of private electronic papers linked to offshore investment, released on November 5, 2017.
Strikes in China Factory – One of the largest strikes in mainland China occurred in April 2014 at the Yue Yuen Industrial Holdings Dongguan shoe factory, which produces shoes for Nike and other brands. Yue Yuen underpaid a monthly employee by 250 yuan. Yue Yuen’s average monthly wage is 3000 yuan. 70,000 people work at the plant. This practice had been in place for almost two decades.
Nike – Future Plans
Nike has not been spared from the covid outbreak. Revenue decreased by 1% in 2020 after falling by 38% the previous quarter. The company’s ability to enhance profit and generate substantial growth in its digital platform, however, has delighted the market.
Nike’s success has persuaded investors that the company is gaining market share throughout the pandemic and would come back stronger than its rivals. Those aspects, particularly the company’s digital capabilities, reflect well for the firm’s competition in the next 5 years.
Nike originally set a goal of $50 billion in annual revenue by the year 2020 in 2015. Due to previous setbacks when it lost momentum to Adidas, it was obligated to postpone that until 2022, but despite the pandemic’s setbacks, the business is on the path to meeting that goal. To do so, it would have to increase sales at a compound annual rate of approximately 9% from $39.1 billion in fiscal 2019.
When the pandemic was already over, the company, like the rest of the apparel industry, seemed to be well-positioned to capitalise on demand. Stores were reopened, and there was undoubtedly a surge in spending on streetwear such as Nike’s classic sneakers. Nike could be able to reach more than $60 billion in revenue by 2025, three years after surpassing its $50 billion objectives in 2022, thanks to its digital momentum and recovery from the pandemic.
However, the firm’s profit ought to increase as more of its sales shift to online and direct, where it has complete leverage over the selling process and isn’t required to share income with its partner companies. Nike’s Consumer Direct Offense has helped the company gain ground on competitors like Under Armour and Adidas, and this growth is projected to continue in the future years.
Nike seems to have a bright future ahead of them. The stock should continue to be a winner over the next five years, with profit margins improving, a headwind from the end of the covid-19 virus outbreak, and a strong leader in its sector.
Nike – FAQs
What does Nike do?
Nike is an American multinational athletic brand that designs, manufactures, promotes, and distributes footwear, clothing, training accessories, and service.
Who founded Nike?
Bill Bowerman and Phil Knight founded Nike in the year 1964.
What was the former name of Nike?
The company was founded with the name, “Blue Ribbon Sports”.
How does Nike make money?
Nike’s business model is totally based on manufacturing and selling athletic and sporting goods, such as footwear, apparel, and equipment – as well as certain services.
Which companies do Nike compete with?
Adidas, Skechers USA, New Balance, Steve Madden, and ASICS America are among Nike’s competitors.
It is super easy to recognise brands. In fact, it is the sole reason why some companies are known as brands. The fact that they are easily recognisable, makes them a big brand. Companies try hard with all sorts to establish themselves as a brand but I kid you not, few of them are actually able to build an empire. Thousands of companies, all around the world survive and die every day, it is just a certain mix of vision and action which makes some of them the success that they seem from a distance.
The cream of the cream is the one that tends to become a super identifiable brand. One of the most identified companies in the world is Nike. The swoosh logo is something that you just cannot ignore, you know it instantly when you see it.
There is a lot of work that has gone behind this brand building. All that work is worth it when we see the current valuation of the company. But here is a trend that we can see in the company. The famous shoe brand is trying to get more surface area in the life of a customer. There are speculations about Nike going to enter the luxury home segment. This article talks about the same. We will check if the news is true and if it is true, then to what extent. Let us get right into this,
We will start off with the topic of branding. Every company in some sense or the other tries to create a persona of a brand. A brand is the perceived perception of a company in people’s minds which helps boost loyalty. Let us define branding in a more formal way and see where the shoe mogul Nike stands in the definition.
Branding refers to the process and all the actions taken thereof in order to create a familiar and trustworthy image of a company. It is creating a strong, valuable and positive perception of a company in the mind of a consumer.
Apart from all the actions and services that the company tries to give to its consumers, There are many more elements that constitute the brand building. Those elements include Logo, statement, design throughout the customer journey, and a reliable omnipresent theme.
People might ask about the function of good branding, which is a legit question. Branding works in creating a persona of the company that stands apart from the rest. This creates an identifiable difference in the market which leads to more people recognising the company. The end goal of which is obviously to increase sales. Thus, branding is a silent salesman.
A Brief About Nike
The company behind the world-famous swoosh logo probably needs no introduction but we will do it for the uninformed. Nike is a sports brand, which specialises in all sorts of sports equipment. The most famous product among all the products is the shoes. They are probably the most famous and most sold shoes ever. The branding of this company is robust and is probably not going to go anywhere in the future.
This sportswear brand takes the branding of its products very seriously. One of the most iconic moments that is often lauded in this company was the partnership with Michael Jordan. The Basketball federation, or the NBA, cancelled the use of Nike shoes (Air Jordans) in the game and imposed a fine of some thousand dollars on it. Guess what Nike did afterwards, they paid the fine imposed on the shoes. This incident advertised the shoes even more and today Air Jordans are the most sold shoes ever. This is one of the many stories which prove the efforts that Nike did for establishing itself as a brand.
They also manage the demand and supply of their goods in such a manner that if you get a pair of shoes, it will feel like a victory for you. They have the hottest sneakers and the company makes it hard to get hands-on with the product from time to time, to induce further demand for the product.
People like to buy things that are not available, this is a good mantra that the brand follows. Making their top products move through shelves is a great demand puller. It pulls the demand by making products harder to find, which in turn makes people want them more. Following this strategy of infusing demand, the sportswear brand has been able to set aspirations of surpassing even the top brands like Louis Vuitton and Gucci.
There is more than just that, Nike is now setting the bar of aspirations higher than ever. They are trying to get out of the line from their product and want to experiment with new forms of market. Keeping in mind the huge demand with which the company operates, increasing market breadth seems to be a good option.
“It’s not like people aren’t spending money on high-priced items,” Business Insider retail analyst Cooper Smith told Complex in a conversation. “It’s just that their preferences for lifestyle and their preferences for fashion are changing.”
In simpler terms, people are willing to pay a premium for things that they really want. If a company can fit into this sweet little spot, where people want their product to great extent, it can earn greater revenue. Apple does it, Nike is the most recurring example in this space. With this advantage, they can also try to be more than just a sportswear brand, they can enter into new and new markets.
Nike can take great advantage of its already built market. It can cross-sell more than just shoes and sports equipment. According to some reports, it is planning to do that sometime. Nike is probably planning to be a fashion house. Let us see what it means to be a fashion house first.
What is a Fashion House?
Fashion is probably the most misunderstood term all over the world. Some people call it art, or a personality statement. Some just dismiss it saying it is a waste of time and money. This problem has always persisted up until now, some call it art and others just dismiss it as something temporary. Whatever may be the verdict of the customers all over the world, it is quite true that companies earn a lot of money from the fashion world. So what does it mean when someone identifies a company as a fashion house?
A fashion house is a one-stop destination for all things fashion. As the name suggests, it is a house of fashion. You can find whatever you need to, in a store of a brand which is identified as a fashion house. It has shoes, apparel and accessories of all sorts. It is a dream for many companies to include a lot of products in their product list. Not everyone can pull this off.
Nike is taking the benefit of its huge fan base. The perception of Nike is no doubt the quality and the pricing that they offer. It already has a lot of shoes and sports materials. They range from being inexpensive to some of the most expensive shoes of all time.
There is Air Monarch is a common Nike that can be seen everywhere and the range goes to HyperAdapt 1.0, which are probably the most expensive shoes from this sports brand. Standing at this intersection of works, Nike can really take advantage of their pedestal. They can go on and then maybe become a fashion house for sure.
Nike’s Plan to Become a Fashion House
Nike has, over the years, managed to create a brand of its name. The famous swoosh logo is now easily recognisable all over the world and this makes this company stand really unique in position.
As of now, there were some speculations about Nike moving to become a more full-fledged fashion house. The company as of now is focusing mainly on shoes and all sorts of sportswear, equipment etc. but watching its current valuation and the amount of influence it has on all over the market can be a big reason for the company moving to become a fashion house. Here we will see how the shoe business has been working over something and what Nike’s relations have been like with the market in which it operates. Starting off with Foot Locker, a marketplace for fashion products.
Nike is Foot Locker’s biggest brand partner. Also, Foot Locker is also one of Nike’s biggest wholesalers. They both have been surviving and thriving on each other’s shoulders. Now the situation has changed and we will be seeing something over here in their relationship.
Foot Locker Store
As we all know that Nike is known to create a vacuum of demand. It simply means that Nike stops the supply of its most demanded shoes to increase and induce more demand, which has not been good for Foot Locker. Foot Locker has recently mentioned that they have lost about a quarter of its market value since the shoewear brand has cut supplies of its most demanded footwear.
Foot Locker said that no single vendor — Nike is its largest supplier — would account for more than 60% of the chain’s total purchases this year, down from 70% in fiscal 2021 and 75% in the year earlier.
The move of Nike to shorten its supplies is not a new thing, it has always existed and retailers are always worried about the demand that the company pulls toward itself. This method or strategy of Nike helps it to control more of its pricing and to become more profitable. This is good for the brand image on a larger level and it makes the company a price maker.
Another reason for Nike to follow the same strategy is that it enables it to sell more via its designed applications and websites. Selling through its own built ways, helps the company to increase sales and thus forge better relations with the customers. This is one reason why Nike tries to sell most shoes on its own and well-built network of distribution channels.
Nike Retail Store
Luxury adviser Mario Ortelli estimates that for multi-billion-dollar luxury brands, direct-to-consumer channels account for more than 90% of sales, on average. For Nike, the share is nearing 40% and could reach 60% by 2025.
It is for sure that Nike will continue to focus on the shoes, which are the star product for the sportswear company. On the other hand, the company is eyeing other opportunities to grow its product line. They want to be more than just a sportswear brand, it is speculated that they want to become a full-fledged fashion house.
In the shoe department, they will always be a fashion retailer as their mainstream work. There will be plenty of limited edition pieces in the future also that will increase the brand value for the company. An increased brand value will foster more partnerships and collaborations with established fashion and luxury houses. Nike has upscaled itself by partnering with luxury fashion brands like Louis Vuitton, Dior, Supreme and Off White.
Nike Collaboration with Supreme and Louis Vuitton
In a recent report, some have also speculated that Nike is also looking forward to buying some established names in other industries as well. For example, it is reported that Nike is eyeing a brand named ‘Peloton’, which is a brand operating in the luxury home fitness space.
Peloton
Foot Locker, which we mentioned earlier has to look out for something to fill the gap that has been created as the Nike inventory has shrunk. This track will take some hard work off Foot Locker as they are the biggest wholesaler for Nike. The other aspect of the problem can be that Foot Locker has an opportunity to shift to another domain. The retailer is getting exclusive access to Reebok’s basketball footwear.
From controlling the demand for their most selling shoes to eyeing companies that are into other luxury products segments, Nike can be seen planning to go more into the luxury segment.
Getting on the ride to maintain its brand value and spreading its wings in all directions of products, it will be good if this fashion retail goes full throttle in the fashion line. Nike has already made one smart move. The current challenge for the company now is to make a more theatrical shift towards becoming a fashion and/or luxury house.
A fashion house is a company that operates its products in a fashion line. A luxury fashion house is a fashion company that operates in the somewhat same segment of fashion products like shoes, bags and accessories etc. However, a luxury fashion house’s products are expensive and are designed for people who want to make a fashion statement and do not mind paying extra for that. There are many benefits of becoming a luxury fashion house, here we list some of them,
More products
A brand that offers the functions of a luxury fashion house, has a lot more products than a brand that is focused on one product line. This helps customers to get more products under one roof, it helps ease the weight of shopping for the customers. As customers go through each aisle of products, the chances of buying more products increase and thus, the profitability.
Previous Goodwill
Brands that are already established have some goodwill attached to themselves. For example, if Apple associates itself with a sound company like ‘Beats by Dre’, then their goodwill will be transferred to the company too. This is one example of how previous goodwill can be transferred to other participating companies and their products. As the goodwill is transferred, revenue is multiplied. In the luxury segment, if someone can transfer their old value to a new venture, it can be a great deal maker for the company.
Trust
This is an extension of the above point. Goodwill when transferred, also transfers the trust that the brand has built in the past. When this happens, when new products work with the same old trusting partnership, it increases customer loyalty. The more a consumer is loyal, the more the business he/she will create for the business.
Conclusion
Nike has always maintained its image as a sportswear brand in the eyes of the public. The swoosh logo is a super identifiable image from the brand, making it different and distinguishable from other brands. The “Just Do It” tagline fits the goal with which the company operates.
Every branding activity just falls in place as the company manages its stock and creates trends. It is very apt to say that Nike is the torchbearer for the sneakerhead culture in and around the world. With this much power to hone, and a future full of opportunities, Nike can be more than just a sportswear brand.
Nike can be a luxury fashion house if it capitalises on the right resources. As per the reports and watchers, the brand has been controlling the supply of its most rated shoes and thus increasing revenue. The company is also said to be eyeing other brands that deal in luxury home items. For example, Peloton, which is a luxury home fitness company, deals in fitness equipment. Nike can take advantage of its current position and leverage from the place where it now stands. The benefits of becoming a fashion house are immense.
An already established brand can benefit from becoming a luxury fashion house, as it will generate more revenue, and there will be benefits and multiplication of goodwill and trust. Nike sits at a leveraged position and can take advantage of that, if done correctly, it will surpass many famous luxury houses.
FAQs
Who is the fashion designer for Nike?
Tinker Hatfield is one of the most popular designers for Nike.
Is Nike turning into a luxury brand?
Yes, with the recent collaborations of the sneaker brand with Louis Vuitton and controlling the supply and demand of its popular sneakers it seems like Nike is becoming the next luxury fashion house.
Also known by his initials MJ, Michael Jordan’s biography on the official National Basketball Association (NBA) website states: “By acclamation, Michael Jordan is the greatest basketball player of all time.” The American former professional basketball player and businessman were vital in popularizing the NBA around the world during the 1980s and 1990s. Michael Jordan has played 15 NBA seasons and won 6 championships with the Chicago Bulls.
Eventually, he became a Cultural Icon. It wouldn’t be wrong to assume that the name Michael Jordan is a brand in itself. For such a popular personality and a great basketball player, brands couldn’t turn a blind eye to partner with Michael Jordan for marketing and endorsements.
Michael Jordan became one of the most marketed sports figures in history for endorsing brands which made the brands themselves big and Jordan himself popular and wealthy:
In 1984, Nike was a struggling company when they signed a deal with a 21-year-old NBA rookie. Michael Jordan signed a US$500,000 five-year contract with the company with an upfront commitment of US$250,000 and gave him his own signature brand – Air Jordan, which was more than any other NBA deal at that time.
Michael Jordan with Nike Air Jordan I
Nike Air Jordan I, the popular Black and Red shoe, was the one that started a revolution. After Air Jordan was released at a retail of US$60, it made US$126 Million in the first year alone, shattering the prediction of US$3 Million in four years. According to Forbes, it was estimated that the Nike Air Jordan brand was worth US$3 Billion and MJ’s current lifetime deal with Nike was US$1.3 Billion at the end of 2019.
Gatorade
Michael Jordan repped with Coca-Cola through several commercials in the 1980s. After the deal was up, Coca-Cola refused to give Jordan the deal he was seeking: a 10-year, seven-figure deal. Gatorade, owned by Quaker Oats at the time, pounced on the opportunity and gave Jordan the same deal which paid him US$13.5 Million over a 10-year deal to be Gatorade’s only endorser in 1991.
Michael Jordan has had a good relationship with the company. Since 1991, he has appeared in over 20 commercials for Gatorade, including the famous “Be Like Mike” commercials in which children sing a song wishing to be like Jordan. Almost over three decades later, those commercials still remain popular.
Chevrolet
Soon after he received a signing bonus of US$10 Million from the Chicago Bulls, Michael Jordan reportedly bought seven cars for his family and himself, at once! He was a big enthusiast of cars.
Chevrolet was Jordan’s first-ever endorsement deal for a sum of US$200,000 during his rookie year in 1984, well before he became an international phenomenon.
McDonald’s
The McJordan Burger was a limited edition McDonald’s Burger which was released in 1992 and Michael Jordan himself appeared in the commercials too. MJ became the first celebrity in history to have a meal named after him.
One of the most famous McDonald’s commercials was, featuring Michael Jordan and Larry Bird where they competed in a game of HORSE for the prize of Big MAC and some fries, in 1993.
Ball Park Franks
Michael Jordan’s endorsement endeavours stamped into the food industry with Ball Park Franks signing Jordan for a US$2 Million deal in 1990. Jordan appeared on the posters wearing a red basketball jersey and holding a hotdog in his hand. The famous poster at that time was Jordan in a slam dunk jump position with the hot dog in his hand, instead of the basketball.
Rayovac, a privately held battery manufacturer which was the third-largest US battery company at that time, signed Michael Jordan for a long term endorsement contract, in 1995. Although the terms were not disclosed, the deal was estimated at US$10 Million over 10 years.
According to the deal, Michael Jordan was a spokesman for Rayovac Power Station chargers and Renewal Reusable Alkaline Batteries.
Wheaties
Michael Jordan became the 7th celebrity athlete to grace the cover of one of the famous boxes when he signed up with the Breakfast Cereal brand for US$2 Million in 1988. Wheaties was a popular brand and as an athlete, you know you have made it when you have appeared on the cover of a Wheaties box.
On Wheaties’ website, they say no other athlete has appeared more on the cover of their boxes than Michael Jordan – a whopping 18 times which is a record standing till today. On eBay, some of MJ’s vintage Sports Cereal Boxes are still up for sale.
Hanes
Michael Jordan signed with Hanes way back in 1989 and continues to be the underwear company’s brand endorser to this day. In 2019, the relationship marked 30 years and it was celebrated with MJ handing out 30th Anniversary Michael Jordan trading cards featuring his ads in packages of underwear. Over 800,000 bonus packs of promotional trading cards of Hanes men’s underwear were included.
Michael Jordan Hanes Trading Cards
According to Hanes, There were 170 different Fleer trading cards produced by the Upper Deck Company for the promotion. Each pack contained five cards. Ten of the packs contained a card autographed by Jordan.
Upper Deck
Trading Card and Collectibles company, Upper Deck, signed Jordan for endorsement in 1992. Micheal Jordan’s rise was always greatly beneficial for Upper Deck, and they have pretty much been with MJ at the beginning of his career.
Upon Jordan’s two retirements, Upper Deck continued to create unique and amazing autographed cards and memorabilia in his honour, which often went for a ridiculous amount of money online.
Signed Jerseys (US$2,500), Basketballs (US$2,000) and Photographs (US$850 and up) – these were included in The Michael Jordan Collection for Upper Deck. Many unsigned photographs and prints for US$250 were the cheapest items whereas the costliest item was an autographed Fleer Rookie Car for US$30,000.
David Falk – The Super Agent Behind Michael Jordan’s Staggering Endorsement Deals
Falk’s ability to generate lucrative endorsement deals was pivotal in generating wealth and popularity for Michael Jordan, which in turn landed Falk with numerous other clients throughout the years. According to Forbes, the net worth of ‘His Airness’ as of 2021 is a massive US$2.62 Billion in inflation-adjusted earnings, making him the highest-paid athlete in the world.
There are no two opinions about Michael Jordan being the greatest basketball player of all time and the history of his endorsement deals due to his rise in sports made the name Michael Jordan, a brand in itself.
FAQs
What is the net worth of Michael Jordan?
The net worth of Michael Jordan is $1.6 billion as of 2022.
Who is the wife of Michael Jordan?
Yvette Prieto, an American model is the wife of Michael Jordan.
How old is Michael Jordan?
Michael Jordan was born on 17 February 1963 and is 59 years old.
Why Michael Jordan is famous?
Michael Jordan is known as one of the best basketball players in the world. He is known for winning six National Basketball Association (NBA) championships for the Chicago bulls and has also won NBA’s Most Valuable Player (MVP) five times
Pratyusha Srivastava
PV Vyshnavi
