Trends Activity – Nike

Nike was originally founded as Blue Ribbon Sports (BRS) in 1964 by Phil Knight and Bill Bowerman. The company started as a distributor for Onitsuka Tiger (now ASICS), importing shoes from Japan. In 1971, it rebranded as Nike Inc., taking inspiration from the Greek goddess of victory. The company then introduced its iconic Swoosh logo and quickly became a global leader in sportswear.

As online shopping became more dominant, Nike adapted by investing heavily in its digital platforms. The company launched its own e-commerce site, mobile apps, and direct-to-consumer (DTC) initiatives. Nike also reduced its reliance on third-party retailers like Foot Locker to build a stronger relationship with customers. These efforts helped boost online sales and improve profit margins.

Nike has expanded beyond sports into streetwear and pop culture by collaborating with top artists and designers. Partnerships with figures like Virgil Abloh (Off-White) and Travis Scott have made Nike sneakers even more desirable. These collaborations blend fashion, music, and sports, making Nike a leader in sneaker culture. This strategy has helped Nike stay ahead of the competition and maintain cultural relevance.

Nike’s Jordan Brand became a major part of hip-hop culture, worn by artists like Run-D.M.C., Travis Scott, and Drake. Hip-hop has played a crucial role in boosting sneaker sales, with rappers and celebrities frequently showcasing exclusive Jordan releases. Nike has also collaborated with artists and designers within the hip-hop industry to create limited-edition sneakers. This connection has helped Jordan Brand maintain strong sales and cultural relevance.

The resale market for sneakers has exploded, with platforms like StockX, GOAT, and Grailed allowing people to buy and sell rare shoes. Limited-edition releases and collaborations drive demand, pushing resale prices to hundreds or even thousands of dollars. Nike’s limited supply strategy fuels the hype, making certain models extremely valuable. This secondary market has become a multi-billion-dollar industry.

Jordan Brand sales have continued to grow, benefiting from its strong cultural relevance and strategic releases. Collaborations with Travis Scott, Off-White, and other designers have made retro Jordans highly desirable. The expansion into lifestyle and women’s sneakers has also helped broaden the brand’s audience. Despite high competition, Jordan Brand remains one of Nike’s top revenue drivers.

Nike has faced challenges with endorsing athletes involved in personal scandals, such as Tiger Woods. His infidelity scandal in 2009 led to several sponsors dropping him, though Nike remained supportive. Other athletes, like Lance Armstrong and Michael Vick, have also faced public backlash. While scandals can damage an athlete’s reputation, Nike often balances loyalty with business strategy.

Explanation: In 2019, athleisure became a dominant trend, blending sportswear with everyday fashion. Nike capitalized on this by expanding its leggings, joggers, and performance-based casual wear. The brand faced strong competition from Lululemon and Adidas, but maintained dominance through its Nike Sportswear and Tech Fleece collections. This trend continues to drive Nike’s apparel growth.

The activewear market was booming in 2018, driven by the popularity of fitness culture and athleisure wear. Brands like Nike, Adidas, and Lululemon experienced strong sales as consumers prioritized comfortable and stylish sportswear. The rise of health-conscious lifestyles, boutique fitness studios, and social media influence contributed to this growth. Despite strong competition, Nike maintained its leadership in the market.