Distribute storytelling across social media channels. Kylie Jenner is the highest-paid celebrity of 2021 who earned around $590 million. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to. Nike is one of the most recognized brands around the globe. For eCommerce, a big part of the marketing strategy is the buying experience. I was viewing a pair of running shoes for women, so the recommended products also have the same style and similar colors to the one I clicked on. Nike has the most dominant market share in North Americas athletic apparel industry (around 27.4% and, recently, own a whopping 96% of the market for basketball shoe industry), and continues to outpace the competitors when it comes to sales: Nikes basketball sneakers Air Jordans brand generated over $3.14 billion in the 2019 fiscal year, up 10% from the previous year. It is a hallmark of quality and status, and it has also benefited from powerful celebrity endorsements that let any buyer take part in something they may see as bigger than themselves. Female athletes say it has not always been that way. Nike is reliant on third-party retailers to get its products into the hands of consumers. Lets analyze Nike athletic shoes go-to-market strategy and see what we can learn from. each of them is a notable individual and embraces distinct qualities. Reputed as the most consistent player in the NBA, the late legendary basketball player Kobe Bryant was the greatest Lakers player the world had witnessed. In this article, Ill share with you everything you need to know about Nikes marketing strategy and what you can learn from them. You can apply this feature to your eCommerce website as well with an app and keep visitors on your site for longer. Nikes SEO strategy is also top-notch. Rovell noted Nike added a clause that said Jordan must either win Rookie of the Year, become an All-Star, average 20 points per game or sell $4 million worth of shoes in his third year to keep the . Hailing from Ireland, McIlory has become the face of professional golf in recent years. 1 Michael Jordan & Nike - $145 Million (This Year) And topping the list go highest-paid celebrity endorsement deals of all time is, of course, Michael Jordan and Nike. Cristiano Ronaldo is the most sought-after celebrity in the world with several endorsements under his belt. Nike's fiscal year runs from June 1 to May 31 of the following year. Nike's marketing strategy. Sell touching stories instead of amazing products. Here are the steps: Your audience is on the Internet for a reason: theyre searching for answers to questions. Nearly 65% of Nike products are sold at third-party retailers. Please do not hesitate to contact me. If youre unsure about your customers real needs, consider research methods from simple keyword research to surveys and get a better idea of what kind of content you should create so theyll find your brand valuable. He had a close relationship with Nike and encouraged Jordan to hear the companys pitch. Nike eventually offered a five-year deal with base pay of $500,000 per year, triple any other NBA sneaker deal. In the other hand, . As with any company, corporate missteps or issues with employee treatment have led to lawsuits. The only woman on the list, Maria Sharapova, was a tennis phenomenon during her active years. (July 20, 2021). Then, you can be the hero to answer and give solutions when the audiences need. The brand is easily worth north of $10 billion, in addition to the billions of dollars in profits it has generated over 35 years and its halo impact on sales of other Nike-branded products. When talking about marketing strategy, the ecommerce shopping experience is a must. Currently, you are using a shared account. Then you can access your favorite statistics via the star in the header. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Nike operated over a thousand stores worldwide. Michael Jordan, Lebron James, and Tiger Woods are just a few of the names that helped catapult Nike to buyers' collective consciousness. (Statista) 2021's Nike brand value was one of the lowest recorded in years. It maintains other valuable brands. Use Ask Statista Research Service. ", Nike, Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) Statista, https://www.statista.com/statistics/961728/nike-endorsement-contracts-value/ (last visited May 01, 2023), Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) [Graph], Nike, July 20, 2021. Kevin Durant inked a seven-year, $60 million deal with Nike that included a $10 million signing bonus. To use individual functions (e.g., mark statistics as favourites, set Customers flock to stores in droves to purchase Nike products. If you are an admin, please authenticate by logging in again. The celebrity athlete is well-known and uses his or her fame to help a company sell or enhance the image of a company, products, or brands (Brooks & Harris, . References Aaker, D . He was one of the first athletes to create his shoe line in partnership with the Jordan brand. Brand recognition does not happen overnight. Statista. This dependence on other corporations means that it may end up sacrificing some of its profits or drive costs up and pass those along to buyers. Is there anything more particular about their marketing strategies and tactics? Nike operated 338 retail locations in the United States. NKE With a combined 25.3 million followers on the major social media platforms, Westbrook is one of the most influential Nike-sponsored athletes. Adidas was 50% larger by revenue. Nikes worldwide employment grew 119% from 2009 to 2020. Nike has acquired and divested a number of companies over time, including Cole Haan and Hurley International. (Reuters). Then you can access your favorite statistics via the star in the header. Nike is one of the businesses that put customers first - a phrase that you might hear several times. July 20, 2021. This allows it to more tightly control distribution and pricing and also creates an air of exclusivity and scarcity that could continue to contribute to its valuable brand perception. 1. As a global powerhouse in athletic footwear and apparel, Nike knows their consumers are picky about what their products can do. #1 Nike's social media content type: User-generated content. Nikes annual revenue still grows steadily year after year. The Nike loyalty program is a club where Nike customers or fans can receive exclusive benefits. Followed by Federer, Nadal is the only player to win 20 Grand Slam titles in his career. but likely represents a larger chunk of the market value because, Los Angeles Chargers Trigger The Club Option On Justin Herberts Deal, But Pass On Doing So With Kenneth Murray, In Draft Flier Kayshon Boutte, The New England Patriots Hope To Find All The Potential In The World, Wolfsburg Reach Womens Champions League Final In Front Of Record Attendance. Converse remains an immensely popular brand, and further opportunities for acquisition may present themselves over time. Associations with top athletes like Roger Federer, Michael Jordan, Carmello Anthony and Cristiano Ronaldo allow the company to enjoy a high level of prestige. Even if he never dabbled in the world of celebrity endorsement, . If you go to Youtube and type in nike review on the search bar, you can receive about hundreds of results. Research expert covering shopping behavior, sports and leisure retail, and the subscriptions and direct selling industry. He had endorsement deals with Coca-Cola and Nutella, which earned him $31 million per year. (Statista). His mission, as well as the brand mission in those days, might have been creating shoes for athletes. Adidas figures come from the company's annual report. As a Premium user you get access to the detailed source references and background information about this statistic. It could rely on its strong reputation for quality in other product lines moving forward, or even develop new products that create new segments. 2022's report can be found here This Sunday explores MJ as a global endorsement phenomenon, with ad slogans like Its Gotta Be The Shoes and Be Like Mike.. Reebok, which Adidas bought in 2005, posted lower revenue last year than it did in 1990. (Statista). Being a track and field coach, he easily wrote the story for his own products and connected with audiences. In 2018, Nike ended the agreement when the athlete admitted to having failed her doping test, as stated by Inside Sports. 1. The sportswear giant has paid him an estimated $1.3 billion by Forbes count since it signed its first deal with Jordan in 1984, and it has helped make him a cultural icon. Revenue of the cosmetic & beauty industry in the U.S. 2002-2022, Value of the leading global textile exporters in 2021, by country, Vegetable oils: global consumption 2013/14 to 2022/23, by oil type, Cocoa bean production worldwide 2020/2021-2022/2023, by country, World coffee per capita consumption: major consumer countries 2015, Cosmetics industry in the U.S. - statistics & facts, Research expert covering shopping behavior, sports and leisure retail, and the subscriptions and direct selling industry, Profit from additional features with an Employee Account. This market is potential and the consumers are supposed to be serious about their purchase decision. Tiger Woods has been one of the most famous athletes of the century. Competition continues to be fierce in the market. Access to this and all other statistics on 80,000 topics from, Show sources information It is the richest athlete endorsement deal ever but also arguably the biggest bargain given that Jordan helped transform Nike from a scrappy underdog into one of the largest, most valuable consumer brands in the world. Tactics that employed in Nikes social media marketing strategy are: When you can sell the stories, values and benefits, you might not need to be bothered by the thought of competing with your competitors in terms of price. The company was founded in 1964 by Bill Bowerman as Blue Ribbon Sports. A post shared by Cristiano Ronaldo (@cristiano). (Statista). You will be surprised to find out that shoes are not the only thing that has brought Nike this far. It has powerful development and marketing branches. In, Brand Finance. 5. During his 20-year career with the New York Yankees, Jeter was the King of New York. Were all familiar with Nikes classic tagline of Just do it, Over the years, the brands shoes, along with famous athlete endorsements and the swoosh logo, have become more popular among consumers than ever. Learn more about how Statista can support your business. You only have access to basic statistics. "Global Revenue of Adidas, Nike and Puma from 2006 to 2022 (in Billion Euros). The company renamed itself Nike, Inc., in 1978 and went public in 1974. The Nike-related topics are still popular searched topics on Youtube because of the creativity of new influencers as well as innovative products of Nike. You need a Statista Account for unlimited access. Some experts predict that Nikes revenue will be able to grow by almost 25% through the fiscal year 2021 and reach $45.4 billion. Michael Jordan has been one of the biggest endorser with Air Jordan's introduced back in 1984. Instead of marketing your products competitive advantages or features, think about what goal your customers are trying to achieve. In terms of your overall marketing strategy, this means** figuring out where your audience hangs out and seeing how you can best reach them. In 2016, the Daily Mail reported that then-18-year-old and very rich Kylie Jenner signed a $1 million deal to serve as a brand ambassador for Puma . Woods has been a Nike spokesperson since 1996, and in 2001, he signed a $100 million deal spanning five years -- one of the most expensive sponsorship deals in history. Business Insider: 25 Nike Ads That Shaped The Brand's History, The Richest: Top 12 Biggest Nike Endorsement Deals of All-Time, Forbes: How Michael Jordan Made $90 Million In 2013, ESPN: Steep Price Paid by Nike Likely to Pay Off. Digital is fueling how we create the future of retail - Nike CEO Jon Donahoe said. Value of Nike's endorsement contracts worldwide 2021-2026. Namely, Beckham has one of the biggest endorsement deals in the NFL right now. Sponsorships and celebrity endorsements can make or break a brand, and Nike invests . Reebok had just burst on the scene and would surpass Nike in revenue by 1987. Economic uncertainty can cause major issues. 4. The golfer earns more than $50 million a year from his endorsement deal. Particularly troublesome are some allegations of sexual harassment and unfair treatment of women in the workplace. Doing some research first definitely helps. Please create an employee account to be able to mark statistics as favorites. Scam artists create knockoff versions of an otherwise identifiable brand, hoping to fool buyers into thinking they are the genuine article when the quality is shoddy and the product is not authentic. Nike commanded nearly 27% of the global market share for athletic footwear. 3. (Statista). A post shared by Maria Sharapova (@mariasharapova). It has been engaged in patent and trademark disputes. The Beaverton, Oregon-based company has partnerships with many of the most talented and famous athletes in the world. Carving out even a small percentage of growth could mean millions or even billions in sales, so Nike cannot simply rest on its laurels. Former NBA player Michael Jordan holds the most valuable deal: $100 million. Nike benefits from a well-established brand image that is beloved by most of the market. "Brand Value of The Sports Company Nike Worldwide from 2016 to 2022 (in Million U.S. (BStrategyHub). In an inspiring blog on Forbes, Celinne Da Costa - a story architect, has emphasized three reasons to use storytelling skills in Marketing strategy: Back in Nikes early days, when Bill Bowerman started the idea of selling more shoes to the market, he knew that he had to tell a story. In addition to the cash payments, Nike is obligated to furnish their endorsers with NIKE product for their use. As Nike moves toward selling directly to consumers, it is also shifting slightly away from a heavier presence in other retailers. Retailers are a major factor. After reading about Nikes marketing strategy, the question now is that: How can you add these methods to your marketing strategy and naturally make them work? It has a number of celebrity endorsements. Figures prior to 2021 taken from previous editions of this publication. Nike sponsorships allow the company to showcase product attributes on a platform that promises to draw attention to the brand. Its clear that the crisis has pumped up the development of Nikes e-commerce strategy significantly. We are inspired by her leadership today and are behind her every step of the way.". Nikewomen is a particular channel for women on Instagram. Expensive Endorsements. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to shoe database site Baller Shoes DB. Counterfeit goods accounted for $461 billion in world trade. The Intriguing Finances Surrounding $66 Million Takefusa KuboTracked By Real Madrid, Coach Darryl Sutter Fired As Calgary Flames Continue Summer Of Change, Philadelphia 76ers Look To Win First Playoff Series Over Boston Celtics Since 1982, FC Barcelona Tell Newcastle United Their Raphinha Asking Price: Reports, biggest shoe deal among active NBA players, when announcing Nikes fiscal second-quarter results. For Nike, it is the smart product recommendations that make a consumer satisfied with their experience. Now lets see what marketing strategy Nike uses to create so much buzz around the brand and continue growing despite fierce competition from other sports industry players. Nike spent nearly $1 billion on endorsements in the 12 months that ended in May, according to filings. statistic alerts) please log in with your personal account. Register in seconds and access exclusive features. Nike generated $30.6 billion in revenue worldwide from its major product segments, including sportswear, running gear, training gear, and specialty sport and footwear lines. Published by. Converse was the brand of choice for NBA stars Magic Johnson, Larry Bird and Julius Erving. Nikes market cap of $136 billion is three times the size of Adidas. She has the Career Grand Slam: Australian Open, French Open, and US Open, along with a silver in the Olympics. Nike has mastered the art of producing quality products at a relatively low cost. For a company that targets the younger generation like Nike, it is important to use social media as a vital part of their marketing strategy. Its base product line touches most parts of the market. Lebron James & Nike. Nike was all too eager to sign a $25 million a year contract with the star golfer who then represented the brand in their golf gear, as noted by Finances Online. So, if you are selling t-shirts, immediately think about assigning them with purified traits. 2022's report can be found here. Magento Commerce or Adobe Commerce is a registered trademark by Adobe. (Statista). Many popular brands suffer from the counterfeit goods market. Reuters: Adidas calls in fitness experts to revive Reebok. 3. Marketing Science Institute: Are Celebrity Product Endorsements Worth the Investment? While many choose this brand for normal use, others select it as a fashion statement to be kept in pristine condition and promptly replaced or upgraded over time. More than that, the company keeps their fanbase engaged and eager for more news thanks to the follow-up emails. In a market with a very high proliferation of local, regional and international . Please do not hesitate to contact me. . The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Michael Jordan & Hanes And spending for the next year will probably surpass $1 billion. The firsts qualities of Nike that people can think of are being lightweight, comfortable, durable, and supportive. One way to position your brand as an authority on industry is to create compelling content that addresses their concerns. Show publisher information In fact, Nike was able to recover 57 percent of its $181 investment in Woods solely through U.S. golf ball sales. Are email newsletters suitable for your customers? These deals have earned players more money outside the sports, with the magic word being sports endorsements. 1. Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) [Graph]. This helps increase their profit margins, as well as the development of a trade and distribution empire sure to keep every retailer well-stocked to meet increasing demand. Manufacturing costs typically stay low. Chart. Quality and style are a winning combination for Nike across the board. These lucrative partnerships have enabled sports stars to earn more money outside of their game. 2. Profit from the additional features of your individual account. Profit from the additional features of your individual account. How Nike distinguishes themselves from other shoe brands depends heavily on the marketing strategy. Statista. 4. In addition to celebrity endorsements and sponsorships, Nike also backs local organizations to personalize the brand. (Statista). 2022's report can be found here. Fun fact: The brand name Nike is not a senseless sequence of letters. How has Nike been guiding its customers through the online shopping experiences smoothly? Available: https://www.statista.com/statistics/961728/nike-endorsement-contracts-value/, Nike's endorsement contracts commitments worldwide from 2021 to 2026, Available to download in PNG, PDF, XLS format, Global sports footwear market revenue 2018-2028, Revenue of the footwear market worldwide by country 2021, Share of the leading 10 global footwear consumers in 2021, by country, Sales of the leading apparel/footwear retailing companies worldwide 2021, Global net sales of Foot Locker from 2013 to 2021, Global net sales of Foot Locker from 2015 to 2021, by region, Global net sales of Foot Locker from 2015 to 2021, by business segment, Global gross margin percentage of Foot Locker from 2015 to 2021, Global net income of Foot Locker from 2013 to 2021, Global number of Foot Locker employees as of 2022, Global number of Foot Locker stores from 2017 to 2022, Global number of Foot Locker stores as of 2022, by store type, Global selling square footage of Foot Locker from 2013 to 2021, U.S. number of Foot Locker stores as of 2022, by store type, Global revenue of Nike 2022, by product segment, Nike's footwear sectors net revenue 2017-2022, by region, Adidas Group's global net sales from 2002 to 2022, by product category, Skechers net sales worldwide 2022, by region, Nike and adidas' share of the footwear market as of 2017, by region, Nike and adidas' share of the sports footwear market as of 2017, Revenue outside the United States - Nike 2013-2016, Share of the leading 10 global footwear producers in 2021, by country, Footwear and leather goods: quarterly sales volume index in Great Britain 2015-2022, Footwear and leather goods: Sales value quarterly index in Great Britain 2015-2022, Footwear stores: retail sales growth in the Netherlands 2007-2017, Global exporters of footwear, gaiters and related products 2013-2021, by country, Sales turnover of footwear in Norway 2017, by sales channel, Market shares of footwear trade in Finland 2018, by channel, Average price of men's footwear in Canada 2012-2013, Quarterly retail sales of athletic footwear in Canada 2013-2016, Nike's scope 3 GHG emissions 2015-2021, by segment, Nike's share of sustainable material used in business segments 2015-2019, Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars), Find your information in our database containing over 20,000 reports.
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