Nike now has a virtual monopoly in the once-competitive basketball sneaker business. Tiger Woods: $20 million/year. 6. Size of the global activewear market 2021 to 2028, Leading sport clothing brands in France 2021, by number of users, Global sports footwear market revenue 2018-2028. ", Statista, Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) Statista, https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/ (last visited May 01, 2023), Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) [Graph], Statista, March 9, 2023. It can expand into emerging markets. Reebok had just burst on the scene and would surpass Nike in revenue by 1987. Its customer base is very strong. 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. Make sure your M2 store is not only in good shape but also thriving with a professional team yet at an affordable price. The New York Times reported the soda giant was thinking big far beyond TV or print ads and was aiming to "get into the Beyonce business.". How Nike distinguishes themselves from other shoe brands depends heavily on the marketing strategy. Nike generated $6.7 million in Chinese revenue. Long live the King. As sports players lived their life in front of cameras, Nike took advantage and offered staggering amounts of money for endorsement deals and advertisements. 3. 2022's report can be found here North America comprises 36% of its market. Lets think about Nike for a second and tell the first word that describes shoes of this brand, you can quickly identify it, athletic shoes. The seven-time All-Star banked an additional $8.5 million (7m) thanks to money-spinning endorsement deals with the likes of Gatorade, Foot Locker, and Nike. In, Nike. Nike produced $16.2 billion in gross profit in 2020. Tiger Woods has amassed a net worth of $800 million through his endorsement deals. As one of the largest and most recognizable sports brands on the planet, it is of no surprise that Nike invests significant sums into its promotional campaigns each year. celebrity endorsements are not a new practice, the use of athletes as endorsers is still relatively . You need a Statista Account for unlimited access. Retailers are a major factor. The Swoosh was even more dominant in the lifestyle basketball category, with a 96% share. 1. However, the reasons behind this popularity that Nike gains includes a necessary element, an affiliate program. Published by. It has taken hundreds of marketing minds decades of work to craft the powerhouse image we know today. However, in 2014, Nike celebrated the retirement season of the Yankees shortstop with a tribute ad. These endorsements are a vital part of the brand's success that cannot be discounted. Cristiano Ronaldo is the most sought-after celebrity in the world with several endorsements under his belt. Only from $15/hr, With a big catalog of 234+ extensions for your online store. For example, the company currently has a five-year $1.1 billion sponsorship deal with the NFL to outfit players on all teams, helping to expand their market share and cement their position as global leader in the sports apparel market. July 20, 2021. While Nike helped make Jordan a billionairehis current net worth is $2.1 billionhe paved the way for Nike to leave Adidas and other competitors in the dust. (Statista). Who can inspire and encourage ordinary people to keep running and practicing to reach their health or sports goals? Nike has utilized affiliate marketing to gain a broad spectrum of sports, fashion, lifestyle topics solely on Youtube. The King Of Clay has certainly made a list with his $10 million a year contract with Nike, including royalties. Employ the power of social media marketing. #1 Nike's social media content type: User-generated content. In a market with a very high proliferation of local, regional and international . Currently, you are using a shared account. It could rely on its strong reputation for quality in other product lines moving forward, or even develop new products that create new segments. Register in seconds and access exclusive features. Hailing from Ireland, McIlory has become the face of professional golf in recent years. Nike had a hit on his hands. Brand Finance. Accessed May 01, 2023. https://www.statista.com/statistics/961728/nike-endorsement-contracts-value/, Nike. For eCommerce, a big part of the marketing strategy is the buying experience. Nike stores and other retailers spotlight its ability to offer something to every customer in the market for performance gear, and its lines continue to expand based on consumer demand. 1 overall draft pick straight out of high school cemented Lebron as the biggest endorsement opportunity since Tiger Woods. Nike operated 338 retail locations in the United States. If you are selling furniture, for example, let customers think of them with the feeling of elegance; minimalism; nature-friendly or industrial. Then you can access your favorite statistics via the star in the header. It could continue to develop unique products. Figures prior to 2021 taken from previous editions of this publication. The Nike loyalty program is a club where Nike customers or fans can receive exclusive benefits. How much does Nike spend a year on endorsements? Celebrity endorsements Nike has long aligned itself with star . Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. [Online]. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Dollars). Nikes market cap of $136 billion is three times the size of Adidas. Expensive Endorsements. If you are an admin, please authenticate by logging in again. 2022's report can be found here. Revenue figures for Nike were converted from USD to Euros at an exchange rate of 1 USD - 0.913 Euros (April 19, 2023). (Investopedia). That is how Nikes marketing strategy took the brand to global status, by making people talk about the company, not just for the product, but also about the spirit. (Statista). It is not possible to determine how much Nike will spend on this product on an annual basis as the contracts generally do not stipulate a specific amount of cash to be spent on the product. Its base product line touches most parts of the market. Before considering content distribution tactics, think about your audiences habits, what types of content they like, and where they would find it. 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. 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. Nike made a $100 million, 10-year deal with the hustler, which earned the sports star. She has endorsed Apple, CoverGirl, Keds, and Coca-Cola. While everyone pays handsomely to own a pair of Jordans or customized gear, Nike also increases its popularity through the swoosh on the players' jerseys. "Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. The way Nike features high- profile people on their social channel is storytelling, which is mentioned above. A shoe must be three things, It must be light, comfortable and its got to go the distance. - Bill Bowerman, co-founder of Nike. Nike currently engages in some sustainable practices, but other corporate mandates have led to inconsistencies in execution. Use Ask Statista Research Service. Nike aggressively signed NBA players throughout the 1990s and 2000s, and stars like Kobe Bryant and James helped build its business in the U.S. and China. Followed by Federer, Nadal is the only player to win 20 Grand Slam titles in his career. Are you interested in testing our business solutions? Nikes stock value grew 183% from 2017 to 2021. Nikes products help customers to trust in themselves, train both their body and mind to overcome the challenges of life. Nike has frequently fallen under fire for working conditions in its overseas factories. Marketing budgets continue to skyrocket. Being a big brand in a multitude of industries, Nike has collaborated with many celebrities and influencers. Lets see what sort of marketing strategy Nike used to achieve and maintain their status of a markets dominant player. A post shared by Maria Sharapova (@mariasharapova). Get special offers on the latest news from Mageplaza. Profit from the additional features of your individual account. Nike has recruited a new crop of burgeoning NBA talents, including Zion Williamson and Luka Doncic, to promote the Jordan Brand. Nike paid the fine and seized the moment with an iconic 1984 commercial. Tiger Woods. Bloomberg Business Week noted that as of 2012, the retailer spent 13.5 percent of total company revenue on these marketing efforts. (Vox). You are an athlete in eCommerce as well. As with any company, corporate missteps or issues with employee treatment have led to lawsuits. You need at least a Starter Account to use this feature. She has a Bachelor of Arts in communications from the University of Pittsburgh and an MBA from Robert Morris University. But don't feel too bad for the guy-his current combined Nike and Miami deals are earning him $34 million per year or about $5 million per foot of height on his six foot, eight inch frame. "Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. The company does not sponsor individual sports teams, but they donate products to nonprofit organizations and non-governmental organizations across the world. 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. 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, . From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, Shoe Dog 3 Minute Summary: 15 Lessons Learned + PDF, Target SWOT Analysis for 2021: 24 Key Strengths and, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. (Forbes). Social media platforms are one of the most low-cost but effective tools for social hearing, where the opinions are authentic and objective. Nike lost 5% of its global revenue between 2019 and 2020. One of the most iconic endorsements goes to the partnership between Michael Jordan and Nike with the release of the Air Jordan brand. She's hyped Windows 95, Diet Coke, Smartwater, and more recently, Aveeno. In the late 1980s, Jordan changed the sneaker scene when he introduced Air Jordan to the world. Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line alone. Michael Jordan, Lebron James, and Tiger Woods are just a few of the names that helped catapult Nike to buyers' collective consciousness. Position products carefully. Nike has become synonymous with celebrity endorsements and sponsorships. It has been engaged in patent and trademark disputes. Some experts predict that Nikes revenue will be able to grow by almost 25% through the fiscal year 2021 and reach $45.4 billion. It can rely less on other vendors and retailers. The Jordan Brand had revenue of $3.1 billion in the fiscal year ending May 2019only 8% of company revenuebut likely represents a larger chunk of the market value because its 10% growth rate is faster than the companys overall. If you are an admin, please authenticate by logging in again. Nearly 65% of Nike products are sold at third-party retailers. Another feature that improves the eCommerce shopping experience of the website is the product filter. Addressing the concerns and allegations about its labor force will be key to undoing some of the damage the brand has sustained over time. 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. 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. Nike has filed suit against companies citing patent infringement, including against Adidas and MSCHF for its Lil Nas X shoes. Use Ask Statista Research Service. (BStrategyHub). As soon as this statistic is updated, you will immediately be notified via e-mail. Skillful developers. Access to this and all other statistics on 80,000 topics from, Show sources information Whats most exciting is were still in the early stages of diversifying the Jordan portfolio, former CEO Mark Parker saidwhen announcing Nikes fiscal second-quarter results in December, which included the first billion-dollar quarter for the Jordan Brand. Once you get the answer to the positioning question, even not easy, all of your marketing tactics will automatically work to affirm the qualities and gain some space in customers minds. It can lean into sustainable practices. 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. From basketball legend Michael Jordan to the greatest footballer Cristiano Ronaldo, lets look at some of the most expensive Nike endorsements. Adidas figures come from the company's annual report. Because every well-known individual has their own story, the audiences can easily relate as well as reflect on themselves. That is where Nikes swoosh took inspiration - a wing. 1. 5. Please do not hesitate to contact me. It can improve working conditions. 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. Analyzing Nikes e-commerce strategy, we have found out some effectives tactics of this giant brand. 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. 2021. Female athletes say it has not always been that way. Magento Commerce or Adobe Commerce is a registered trademark by Adobe. 6. International trade could become a pitfall. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to. "Nike's Endorsement Contracts Commitments Worldwide from 2021 to 2026 (in Million U.S. In terms of your overall marketing strategy, this means** figuring out where your audience hangs out and seeing how you can best reach them. Nikes worldwide employment grew 119% from 2009 to 2020. 9 Kevin Durant: $8.5 million per year. These endorsements are a vital part of the brands success that cannot be discounted. Nike benefits from a well-established brand image that is beloved by most of the market. March 9, 2023. , Apr 4, 2022. It maintains a vast line of athletic wear for all seasons and many different sports. Before the pandemic, Nike's value was on the rise, with experts predicting an even larger growth in the future. Nikes annual revenue still grows steadily year after year. 6. Manufacturing costs typically stay low. Nike had signed a $90 million deal with James when he was out of high school; however, the basketball star now has a lifetime deal worth $1 billion. Jordans agent, David Falk, who coined the phrase Air Jordan, had other ideas. When members use the apps, their engagement score is reflected in the main Nike rewards app. Show publisher information Counterfeit goods accounted for $461 billion in world trade. You will be surprised to find out that shoes are not the only thing that has brought Nike this far. Sell touching stories instead of amazing products. When top athletes are seen wearing Nike clothing, their fans want to wear it too. As a professional golfer, Woods is regarded as one of the best, with many records under his belt as proof. Most Super Bowl wins by NFL team 1967-2023, Average ticket price in the NFL by team 2021, FIFA World Ranking: top male soccer teams 2022, Athletic footwear global market share by company 2015, Health & Fitness Clubs - Statistics & Facts, Sporting goods industry in the U.S. - statistics & facts, Research expert covering sports and video gaming, Profit from additional features with an Employee Account. Nikes $40 billion in revenue over the last 12 months was 60% more than Adidas and 43 times what it was before it added Jordan. Converse remains an immensely popular brand, and further opportunities for acquisition may present themselves over time. Particularly troublesome are some allegations of sexual harassment and unfair treatment of women in the workplace. 10 best celebrity ads of 2021 . Nike has become synonymous with celebrity endorsements and sponsorships. 2. 5. If you go to Youtube and type in nike review on the search bar, you can receive about hundreds of results. Are email newsletters suitable for your customers? Going into the 21st century, Nike has retail outlets and product distributors in more than 170 countries, while its logo - a checkmark with a curve called the swoosh - is recognized throughout the world. Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line . endorsements, such as the Nike Air Jordan deal. 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. Rory McIlory was only sixteen when he became a professional golfer and began competing on the green fields. And content is the core element of any marketing strategy as well. (New York Times). Actual payments under some contracts may also be lower as these contracts include provisions for reduced payments if athletic performance declines in future periods. Luka Doncic, to promote the Jordan Brand. Nike then smartly positioned the brand not just as a company that made shoes, but as someone that could help their customers achieve their fitness goals (and their shoes happened to support that goal). Please create an employee account to be able to mark statistics as favorites. Much of Nikes manufacturing happens outside of the United States (where the majority of its sales occur), which means it is vulnerable to international trade laws and sanctions. Nike place high value on NBA players as endorsement partners due to their significant influence on fashion and pop culture, which ties into Nike's growing emphasis on lifestyle and culture. 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. To use individual functions (e.g., mark statistics as favourites, set The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Nike introduction. Overall, though, Nike is a strong company that must work hard to remain strong in the future. The iconic swoosh and ubiquitous tagline Just do it are powerful status symbols in many social and industry circles, and the brand has come to represent the pinnacle of sportswear and footwear for decades. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Any overall decrease in consumer spending could cause Nike to lose out on significant portions of revenue, and since its products are mostly sold at premium prices already, this high-end status could become problematic if spending drops for extended periods of time. Nikes SEO strategy is also top-notch. Nike sponsorships allow the company to showcase product attributes on a platform that promises to draw attention to the brand. Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) [Graph]. A post shared by Tiger Woods (@tigerwoods). In 2017, Nikes loyalty program had 100+ million members who spent almost three times more than guest buyers on the website. No better endorsement deal in history has been as popular and lucrative as Michael Jordan and Nike. Nikes share of the performance basketball market, including the Jordan Brand, was 86% last year, according to market research firm NPD. And basing on the foundational elements of the brand, they can easily come up with ideas to write novel stories for the brand, which is relevant to targeted consumers aspiration, goals or lifestyles. Please do not hesitate to contact me. Only time will tell if continued reliance on poorly-paid employees and adverse (and potentially unsafe) working conditions will be enough to turn most consumers away, decreasing the potential revenue and growth over time. Jordan wore Converse sneakers at the University of North Carolina, and his first choice was to join Adidas after the Bulls drafted him. These deals have earned players more money outside the sports, with the magic word being sports endorsements. Are you interested in testing our business solutions? The athlete has endorsement deals with brands such as Babolat, Kia, Santander, and Emporio Armani. 7. (ABC News). Research expert covering shopping behavior, sports and leisure retail, and the subscriptions and direct selling industry. Nike held 21.1% of the market share for U.S. footwear. References Aaker, D . The ideal entry-level account for individual users. With these follow-up emails, customers can shop and check out Nikes events at ease, while being sure that they can find all the necessary information in their inboxes. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information 2021). Show publisher information Kylie Jenner: Puma, $1 Million. It has powerful development and marketing branches. The two women on the videos shared about their works and ambition to revolutionize fitness through community. What are the first things customers think of when then they hear about your brand? 3. Value of Nike's endorsement contracts worldwide 2021-2026. It maintains other valuable brands. For example, breathable; eco-friendly or outdoor-inspired t-shirts, etc. The adidas Group's net sales worldwide from 2000 to 2022, Leading 10 global footwear consumers 2021, by country, Net sales of Skechers worldwide 2011-2022. However, behind all of them, there is one element that plays a fundamental role, it is product positioning. If theres just one thing you need to remember from this post, it is the idea of creating marketing content that spreads instead of just for selling. The Marketing Science Institute published a study noting the Nike golf ball division increased profits by $103 million from 2000 to 2010, due to the companys endorsement deal with Tiger Woods. The emails serve as automated responses to many touch points during the customer journey, such as signup, reviews, successful purchases, delivery, newsletters, holiday events, and more. Business Solutions including all features. 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. The shoe industry was significantly revolutionized once Nike entered the business. 1. Nike's fiscal year runs from June 1 to May 31 of the following year. Economic uncertainty can cause major issues. Coupled with his massive contract with the Washington Wizards, Russell Westbrook is one of the highest-paid NBA players. Even though we are not in Nikes Development or Marketing team, we still can assume several resource as following: Being one of the most innovative sportswears brands in terms of marketing at the moment, product analytic can lie in responsibilities of both the Development and Marketing team of Nike, whether it is a most-liked feature or the last step where a user abandons the shopping cart. The cost of advertising and marketing only grows over time, and it must do more and more to maintain its massive brand presence in the market. With that information, Nike has constantly improved its rewards program, fine-tuning it into one of the best loyalty programs in eCommerce. Nike, a brilliant storyteller, has created the sense of belonging for any of its customers for almost 50 years. The Last Dance, ESPNs documentary tracking Michael Jordans final season with the Chicago Bulls, has captivated the American viewing public at a time when sports are on lockdown. (Fashionista). As mentioned by Forbes, Nike made him the brand's face and has offered him a $1 billion lifetime deal similar to Lebron James. Many companies are looking overseas to other markets to increase their revenues. Just focus on delivering values to your customers life by using your products. 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. 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. In the other hand, . Please create an employee account to be able to mark statistics as favorites. 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. (Statista). Nike's marketing strategy. 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. Please do not hesitate to contact me. 6. Marketing Science Institute: Are Celebrity Product Endorsements Worth the Investment? Is there anything more particular about their marketing strategies and tactics? On October 18, the NBA threw them out of the game. A No. Beyond simple marketing and advertising, Nike has also remained at the forefront of athletic wear research and development, positioning itself as a reliable brand for quality as well.
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