Nike sneakers are known for their uniqueness, which has led to constant changes and the development of a wider range of products. They struck gold in the 80s by pairing with NBA basketball stars such as Michael Jordan—the Air Jordan brand alone has generated billions for Nike over 35 years and has had a ripple impact on sales of other Nike-branded products.
However, Nike appears to have run out of steam in recent times. In June, Nike stocks saw their biggest drop since 2001, wiping out billions in market value as investors grew increasingly concerned that the sportswear giant was losing market share to upstart brands such as On and Hoka and had failed to capitalise on the recent running boom.
“Nike thought it owned the competitive set. However, customers’ perceptions of the competitive set changed. They left behind its heritage of being the superior, cutting-edge footwear for serious athletes. Nike cut off the development of more affordable footwear, leaving behind Nike lovers with smaller budgets.,” says Greg Paull, Co-Founder of R3. “They need to return to a more balanced approach with an investment in brand and innovation, balanced against their DTC approach.”
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