To say Nike dominates
the sportswear market would be an understatement. And if we talk about market
position of this product is very high and financially very beneficial. So let’s
go to numbers:
48%
The percentage of the
American athletic footwear market owned by NIKE Inc. – so that includes Nike,
Jordan Brand and Converse. Adidas’s 9% share has been declining every year
since 2011. Nike’s dominance of the basketball sector is particularly mind
blowing – 96% of the market for b-ball footwear is adorned with the Swoosh or
the Jump man.
$100
The amount of money
Nike spent per second on so-called “Demand Creation” in Fiscal 2014. “Demand
Creation” is essentially Nike’s buzzword for marketing, and could be anything
from athlete endorsements and collaborations to ad spends.
$50 billion
The 2020 annual revenue
target recently announced by Nike CEO and President Mark Parker. It’s a lofty
target to say the least – even if the Swoosh’s revenue was up 5% to $27.8
billion in fiscal ’14.
Nike’s current $27.8
billion annual revenue is bigger than the entire nation of Uganda’s GDP, and
the $50 billion target would place Nike above Slovenia, Costa Rica and Tunisia
– all of whom have GDPs below $50 billion currently.
$2.25 billion
The amount of revenue
generated annually by the Air Jordan line. The utterly vast hype surrounding
Jordan’s Retro releases means Nike can routinely shift hundreds of thousands of
sneakers in a matter of minutes, without the need for any advertising or
marketing whatsoever.
57,000
The amount of people
Nike employs worldwide (excluding production, which is handled by external
contractors).
That’s almost double
the population of Monaco. 650 of those are designers, who the brand gives a
famously long leash to push radical new ideas, and who regularly turn far-out
concepts into commercial smash hits.
In the early 80’s its first national television advertisement was shown during the New York Marathon. Moreover, the patented invention of NIKE's air technology lead to the creation of the Air Force 1 basketball shoe which made use of the new technology for the first time.
Again, NIKE bet its former success on the sales force-tactic when Michael Jordan, the most famous basketball player at the time, was signed to an endorsement contract, too. Sure enough, it worked out:
Jordan presented his own shoe the Air Jordan, which was banned by the NBA because of too much publicity. This shoe caused so much reaction on the market and of course in the media that it changed into a public relations tool by itself – a key moment for NIKE. No surprise that the corporate turnover broke through the financial border of $1 billion.5
The following years NIKE developed its tactic focussing on sales representatives into a successful strategy by signing popular sportsmen and women at the beginning of their career like the famous baseball and football player Bo Jackson, the Brazilian national soccer team, Tiger Woods and many others. Next to that, NIKE drew public attention with the help of terse slogans like “Just do it” from 1988 and controversial campaigns like "You Don't Win Silver — You Lose Gold.", which was criticised and discussed during the Summer Olympics in Atlanta in 1996.5
Today NIKE can call itself undoubtedly the biggest sportswear manufacturer of the world. As a role model for efficient brand-marketing, the company still focuses on the consumer desires and never stops improving “the process of planning and executing […] to create exchanges that satisfy individual and organizational goals
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