3. 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. These endorsements are a vital part of the brands success that cannot be discounted. Nike operated over a thousand stores worldwide. Take a look around Nikes social media profiles, you can easily see how successful the brand has become. These endorsements are a vital part of the brand's success that cannot be discounted. Make sure your M2 store is not only in good shape but also thriving with a professional team yet at an affordable price. Retailers are a major factor. . 1 overall draft pick straight out of high school cemented Lebron as the biggest endorsement opportunity since Tiger Woods. Tiger Woods has amassed a net worth of $800 million through his endorsement deals. In order to remain successful and seen as environmentally-friendly, it must take full advantage of the growing pool and research into earth-conscious practices for manufacturing and development. 2021). His net worth in 2020 is estimated at $25 million. 5. Nike is a household name in practically every major part of the world. NKE If you can name one or a few characteristics of your products that they can be used for differentiated from others on the market, you are halfway to success. It can rely less on other vendors and retailers. Nike has a clear-cut identity as a sportswear brand, which has been building for a long time with multifaceted marketing strategies. Many companies are looking overseas to other markets to increase their revenues. As a Premium user you get access to the detailed source references and background information about this statistic. Nike currently engages in some sustainable practices, but other corporate mandates have led to inconsistencies in execution. (Statista). 9 Derek Jeter. Reuters: Adidas calls in fitness experts to revive Reebok. 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. 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. Tiger Woods & Nike. Nike has always put an emphasis on the imagery of their marketing strategy. Use Ask Statista Research Service. Celebrity endorsements Nike has long aligned itself with star . During his 20-year career with the New York Yankees, Jeter was the King of New York. Jordan had a $500,000 a year, five-year deal with Nike, but now the retired player makes $100 million a year, thanks to Air Jordan. Nike's fiscal year runs from June 1 to May 31 of the following year. As a Premium user you get access to background information and details about the release of this statistic. In addition to the cash payments, Nike is obligated to furnish their endorsers with NIKE product for their use. The Beaverton, Oregon-based company has partnerships with many of the most talented and famous athletes in the world. Magento Commerce or Adobe Commerce is a registered trademark by Adobe. If you are facing some creative blocks in building a story marketing strategy, our recommendation is to search inside your brand mission and answer these kinds of questions: Bill Bowman and Phil wanted to create sportswear for athletes, helping them to reach their highest potential. dollars)." In the other hand, . Word of mouth and social media can be low-cost alternatives, but that will not be enough in emerging markets or to promote new product launches. Namely, Beckham has one of the biggest endorsement deals in the NFL right now. Being a track and field coach, he easily wrote the story for his own products and connected with audiences. The Nike Swoosh is ubiquitous today, yet that was hardly the case in the mid-1980s. Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) [Graph]. Show publisher information It currently only owns one other major brand: Converse. Accessed May 01, 2023. https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/, Statista. 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. The former Texas standout famously turned down a $70 million deal from Adidas to sign with the Swoosh. Nike has done that since the beginning. Actual payments under some contracts may also be lower as these contracts include provisions for reduced payments if athletic performance declines in future periods. 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. [Online]. In Nikes case, their target audience were looking for new ways to get in shape. Is there anything more particular about their marketing strategies and tactics? 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. She has a Bachelor of Arts in communications from the University of Pittsburgh and an MBA from Robert Morris University. Former NBA player Michael Jordan holds the most valuable deal: $100 million. Derek Jeter is one of the highest-paid baseball athletes, with a $200 million net worth. One way to position your brand as an authority on industry is to create compelling content that addresses their concerns. Nikes share of the performance basketball market, including the Jordan Brand, was 86% last year, according to market research firm NPD. Its customer base is very strong. (Statista). Even though Nike remains fairly dominant in the market, competition is stiff, and brands continue to jockey for the top spot in consumers minds and will continue to try to hold onto their loyal customer bases. News on all your favorite celebs, reality TV, and movies. Lets explore a full analysis of the strengths, weaknesses, opportunities, and threats facing this company. A post shared by Cristiano Ronaldo (@cristiano). Followed by Federer, Nadal is the only player to win 20 Grand Slam titles in his career. Dollars). Nike introduction. The company depends on the customer behavior data collected from multiple sources to optimize their products and services. As the image above suggests, consumers can sort products by many aspects, such as size, brand, type, suitable weather, icon, material, technology, height, width, and more. Another feature that improves the eCommerce shopping experience of the website is the product filter. Customer signing up for a membership is only a part of Nikes customer experience. With a robust follow up email marketing app, your business can do the same. ", Brand Finance, Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) Statista, https://www.statista.com/statistics/632210/nike-brand-value/ (last visited May 01, 2023), Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) [Graph], Brand Finance, January 31, 2022. It has been vulnerable to lawsuits. If you are an admin, please authenticate by logging in again. That's mainly because of her successful endorsement career. A paid subscription is required for full access. Currently, you are using a shared account. As mentioned by Forbes, Nike made him the brand's face and has offered him a $1 billion lifetime deal similar to Lebron James. As of 2022, the Nike brand was . On October 18, the NBA threw them out of the game. Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) [Graph]. Adidas employed over 60,000 people worldwide in 2021 and, just as with Nike, footwear is the most important category for Adidas. (Statista). She has endorsed Apple, CoverGirl, Keds, and Coca-Cola. Can The Math Game Help The Denver Nuggets Beat The Phoenix Suns? Learn more: 9 Kevin Durant: $8.5 million per year. Nike has all but cornered the market on footwear, but the opportunity remains for it to set the standard in other areas. How much does Nike spend a year on endorsements? Considering this, What commercials are celebrities in? How to Get Your Car Sponsored Professionally. (Statista). After the Greek goddess of speed, strength, and victory, the name is also known as Winged Goddess. StartupTalky - Know Startup Stakeholders and Learn How to's These deals have earned players more money outside the sports, with the magic word being sports endorsements. Nike has frequently fallen under fire for working conditions in its overseas factories. Dollars). 1. Cristiano Ronaldo is the most sought-after celebrity in the world with several endorsements under his belt. Michael Jordan, Lebron James, and Tiger Woods are just a few of the names that helped catapult Nike to buyers collective consciousness. Over the years, Nike has spent generously on sports endorsements with athletes ranging from football to golf. Then, show up with the information, products, and services to help them make it happen. A No. It can lean into sustainable practices. Are you interested in testing our business solutions? Business Solutions including all features. The Swoosh was even more dominant in the lifestyle basketball category, with a 96% share. Nike generated $6.7 million in Chinese revenue. She has the Career Grand Slam: Australian Open, French Open, and US Open, along with a silver in the Olympics. Woods signed a five-year contract for $100 million in 2001, and his current contract stands at $200 million. According to a survey by Adobe in 2018, gen Z and millennials, who were born between 1980 and early 2010s, most likely use social media as their connecting channels with digital advertisements. Tiger Woods. (Statista). If you go to Youtube and type in nike review on the search bar, you can receive about hundreds of results. Nike has recently made drastic moves to sell directly to consumers, opening its own retail storefronts and even selling directly online. Kevin Durant inked a seven-year, $60 million deal with Nike that included a $10 million signing bonus. 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. 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. Jennifer Aniston. Taylor signed a deal worth $26 million with Coca-Cola for promoting Diet Coke. Make sure youre prepared in your approach when it comes to spreading your content. In 2021 alone, Nike's advertising and promotion costs amounted to approximately 3.11 billion U.S. dollars. It will never be above imitation or outright infringement of its products, and lawsuits to rectify these problems take time, energy, and expense away from the company with the potential of losing out on a contested case. Nikewomen is a particular channel for women on Instagram. But, just like any effective marketing strategy, it requires a company to be consistent in its efforts and provide customers with real and relevant values. (BStrategyHub). Get full access to all features within our Business Solutions. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to. The amount represents approximate amounts of base compensation and minimum guaranteed royalty fees Nike is obligated to pay athlete, public figure, sport team and league endorsers of their products. He was one of the first athletes to create his shoe line in partnership with the Jordan brand. This means that Jordan brand incorporates more value . Nike has filed suit against companies citing patent infringement, including against Adidas and MSCHF for its Lil Nas X shoes. July 20, 2021. With that information, Nike has constantly improved its rewards program, fine-tuning it into one of the best loyalty programs in eCommerce. The most expensive celebrities for promotions are: Taylor Swift. Which social networks are they highly active on? Kylie Jenner: Puma, $1 Million. Professional athletes have arguably the best career in the world as their impact goes beyond the field of sports. He had endorsement deals with Coca-Cola and Nutella, which earned him $31 million per year. 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. Customers flock to stores in droves to purchase Nike products. Lets see what sort of marketing strategy Nike used to achieve and maintain their status of a markets dominant player. ", Coca-Cola SWOT Analysis Matrix: Opportunities and Weaknesses, BMW SWOT Analysis Matrix: Opportunities and Weaknesses, 100 Best Side Hustles for Teens to Make Money, 10 Proven Psychological Pricing Strategies with Examples, 100 Office Etiquette Rules You Need to Know. Michael Jordan and Nike. Nike is one of the most recognized brands around the globe. The benefits of the loyalty program includes:exclusive products, priority access to tickets to sporting events, early access to product launches, rewards for being active through their apps, expert advice on training and exercise,, special offers on birthdays and, even better, free delivery. Nike and Jordan show how successful a celebrity endorsement can be with effective marketing and the right celebrity. In fact, Nike was able to recover 57 percent of its $181 investment in Woods solely through U.S. golf ball sales. Everyone knows Nike. It can expand into emerging markets. Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) [Graph]. Skillful developers. Adidas was 50% larger by revenue. Nike's endorsement spending . Intellectual property is incredibly important to any retailer, but especially to a powerful brand like Nike. 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 . [Online]. The company renamed itself Nike, Inc., in 1978 and went public in 1974. Profit from the additional features of your individual account. Currently, you are using a shared account. 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. Check out the following conversation on Twitter, when a customer mentioned Nike on his post: Nike has truly turned Twitter into a place to be heard from its customers. 2. As sports players lived their life in front of cameras, Nike took advantage and offered staggering amounts of money for endorsement deals and advertisements. Statista. 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. Analyzing Nikes e-commerce strategy, we have found out some effectives tactics of this giant brand. Lets see what methods they put into practice. Not only that, but you need to create the best content on your industrys topic, compared to anywhere on the Web. 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. 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. Quality and style are a winning combination for Nike across the board. Counterfeit goods accounted for $461 billion in world trade. Doing some research first definitely helps. During his 20-year career with the New York Yankees, Jeter was the King of New York. Then, you can be the hero to answer and give solutions when the audiences need. Long live the King. The Shake It Off singer has had some of the best endorsement deals. 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. His skilled game on the field has earned him an army of fans who follow everything he does. 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. (Statista). Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line alone. What are the first things customers think of when then they hear about your brand? Nike is reliant on third-party retailers to get its products into the hands of consumers. #2 Feature collaborations with celebrities. 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. However, in 2014, Nike celebrated the retirement season of the Yankees shortstop with a tribute ad. It relies on inexpensive labor to keep its operating costs down, but fair treatment of its employees across the globe remains a blemish on its record. Nike lost 5% of its global revenue between 2019 and 2020. Show publisher information Few stars have risen higher than Beyonce and in 2012, her global celebrity translated into a multi-year, $50 million contract with Pepsi. The firsts qualities of Nike that people can think of are being lightweight, comfortable, durable, and supportive. Tiger Woods: $20 million/year. For example, Nike recently celebrated the anniversary of their famous Just Do It tagline with an advertisement featuring a voiceover by movie star Bradley Cooper and cameos from a variety of famous athletes, which gained more than four million views during the first week it was online. Get full access to all features within our Business Solutions. The endorsement all started at the beginning of Jordan's NBA career. Nike now has a virtual monopoly in the once-competitive basketball sneaker business. Because its founders were athletes, they could tell authentic stories. Nikes stock value grew 183% from 2017 to 2021. For a while, it was estimated that he made . If this all seems like a lot of information for you, thats because it is. 2022's report can be found here. 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. Are you interested in testing our business solutions? Michael Jordan, Lebron James, and Tiger Woods are just a few of the names that helped catapult Nike to buyers' collective consciousness. Can you pay to promote your content on these networks? (Statista). And content is the core element of any marketing strategy as well. Nike has recruited a new crop of burgeoning NBA talents, including Zion Williamson and Luka Doncic, to promote the Jordan Brand. Nike benefits from a well-established brand image that is beloved by most of the market. This market is potential and the consumers are supposed to be serious about their purchase decision. (Statista). 6. "Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. Nike outperformed competitor Adidas in revenue by 69%. George's latest signature shoe with . In, Statista. Its base product line touches most parts of the market. Available: https://www.statista.com/statistics/632210/nike-brand-value/, Brand value of the sports company Nike worldwide from 2016 to 2022, Number of employees of the top sportswear companies 2021, Sportswear import value in the EU from 2014-2019, Sportswear export value in the EU from 2014-2019, Export value of sportswear in the EU by leading country 2019, Importers of fashion sportswear in the EU 2019, Import value of fashion sportswear to France 2019, by product, Distribution of import value of fashion sportswear to France 2019, by product, Average growth rate of import value of sportswear to France 2014-2019, by product, Average import unit price of fashion sportswear to France 2019, by product, Imports and exports value of sports footwear in France 2015-2020, Imports and exports volume of sports footwear in France 2015-2020, Change in revenue of sporting goods retailers in France 2019-2020, Sales value change of lingerie and swimwear in France 2019-2020, by item type, Breakdown of sports and sportswear purchases in France 2020, by channel, Market share of sports and sportswear retailers in France 2020, Production volume of sports shoes in France 2010-2020, Production volume of men's anoraks, ski jackets, windcheaters in France 2017-2019, Yoga clothing market size in France 2019, by type of item, Yoga clothing market breakdown in France 2019, by type of item, Leading brands of sports shoes/trainers in France 2020, by number of users, Most visited sportswear stores for sports purchases in France 2018, Annual revenue of selected athletic wear companies in France 2015-2020, Leading Dcathlon sports clothing in France 2014-2021, by number of users, Women's swimwear usage in France 2014-2020, by number of purchased items, Men's swimwear usage in France 2014-2020, by number of purchased items, Sportswear clothes most frequently used by the French in their daily life 2018, Annual Consumer Price Index for women's sportswear in France 2010-2021, Annual Consumer Price Index for men's sportswear in France 2010-2021, Annual Consumer Price Index for children's sportswear in France 2015-2021, Sports apparel and equipment annual spending of French sportspeople 2019, by gender, Annual spending on sportswear by French sportspeople 2019, by age group, Annual spending on sportswear by French sportspeople 2019, by level of income, Annual spending on sports apparel and equipment by people in France 2019, by type, Annual spending on sports apparel and equipment by French people 2019, by channel, Share of French yoga practitioners' spending on sportswear 2019, by type of clothing, Leading 'Shoes (Except Sports And Indoor)' brands among women in FR 2021, by number of users, Sports clothing items usage in France 2014-2020, by amount spent, Global brand value comparison of Nike and adidas from 2010 to 2022, Global brand value of H&M from 2016 to 2022, Global brand value of Zara from 2016 to 2022, Global brand value of Uniqlo from 2016 to 2022, Global brand value comparison of H&M and Zara from 2010 to 2022, Global brand value of Chanel from 2017 to 2022, Global brand value of Dior from 2016 to 2022, Global brand value of Herms from 2010 to 2021, Global brand value of Cartier from 2016 to 2022, Global brand value of Louis Vuitton from 2016 to 2022, Global brand value of Gucci from 2016 to 2022, Global brand value of Gillette from 2016 to 2022, Global brand value of Nivea from 2016 to 2022, Global brand value of Dove from 2016 to 2022, Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars), Find your information in our database containing over 20,000 reports, America's favorite clothing and footwear brands. Converse was the brand of choice for NBA stars Magic Johnson, Larry Bird and Julius Erving. As a global powerhouse in athletic footwear and apparel, Nike knows their consumers are picky about what their products can do. North America comprises 36% of its market. "Brand Value of The Sports Company Nike Worldwide from 2016 to 2022 (in Million U.S. You may opt-out by. 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. 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. each of them is a notable individual and embraces distinct qualities. It has been engaged in patent and trademark disputes. Home Business Nike SWOT Analysis (2021). 2. #1 Nike's social media content type: User-generated content. 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). This statistic shows Nike's projected endorsement contracts commitments from 2021 to 2026 . According to the company's annual report for 2021-22, Nike is the world's largest seller of athletic footwear and apparel. Addressing the concerns and allegations about its labor force will be key to undoing some of the damage the brand has sustained over time. Nikes worldwide employment grew 119% from 2009 to 2020. Following his retirement in 2015, Bryant was offered to create his line of shoes for Nike, one of Nike's most popular shoes, and earned him $15 million a year. Some consumers may not be aware of the full line of products, or may be turned away by higher costs when compared to other comparable products. Any changes in trade law, supply chain management issues, or other pitfalls inherent to an international company could cause major problems if left unchecked, leading to short supply or delayed product delivery. The company does not sponsor individual sports teams, but they donate products to nonprofit organizations and non-governmental organizations across the world. celebrity endorsements are not a new practice, the use of athletes as endorsers is still relatively . Sell touching stories instead of amazing products. The Swoosh was even more dominant in the lifestyle basketball category, with a 96% share. Just focus on delivering values to your customers life by using your products. including Nike who was forking over $10 million. Tiger Woods has been one of the most famous athletes of the century. 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. Research expert covering shopping behavior, sports and leisure retail, and the subscriptions and direct selling industry. 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. Magento 2 Extension Customization Service, Experienced M2 Developers Ready To Join Your Team, Best-sellers: Must-haves for all M2 stores, Sell touching stories instead of amazing products, Employ the power of social media marketing, #1 Nikes social media content type: User-generated content, #2 Feature collaborations with celebrities, #3 Join in customers social conversations, Ensure easy, exciting and hassle-free online purchasing, #3 Useful, logic and detailed product filtering, Apply Nike marketing strategy to your brand, Step 2: Figure out how to reach your audience, Step 3: Create content that addresses audience needs, improves the eCommerce shopping experience, Magento 2.4.6 Release Notes - Highlight Features & How to Upgrade.