As of Nike had granted patents and counting. Known as Nike Grind, the material is made up of recycled shoes, plastic bottles and manufacturing offcuts. It is also used to make running tracks, gyms, playgrounds and more. Nike collects more than 5 million old shoes each year to use in the creation of Nike Grind through its Reuse-A-Shoes programme. To date more than 28 million shoes have been collected and recycled through the scheme. Nike has partnered with Instagram to sell directly to customers through the photo-focused social media site.
E-commerce is a major part of its future growth strategy. Nike has a members-only app called SNKRS , which lets super-fans stay up-to-date on when new collections and exclusive products are available, buy shoes, take part in competitions and stay in the know about their favourite products.
The company has recently experimented with AR and location-based tech to allow users to unlock the chance to buy exclusive products. Perhaps the most famous Nike range though is the Air Jordans trainers, which are endorsed by former professional basketball player Michael Jordan. Today the trainers come under the Nike Jordan brand, which includes other products bearing the Jordan name.
Nike is also the parent company of the popular Converse and Hurley brands. Shaen said Nike makes up more than half of his sales. The end of the Nike partnership, coupled with the crippling impact of the pandemic, will likely lead him to close the store by the end of the year, he said.
Sandra Carreon-John, a spokesperson for Nike, did not comment directly on Shaen's account, but said in an email that the company "continually evaluates the marketplace to understand how we best serve consumers, making adjustments to our sales channels as needed to create a consistent, connected and modern shopping experience.
Such experiences include building out a specific Nike-branded section of a store, or having Nike-dedicated employees specially trained to help consumers understand the benefits of a running shoe, for example — efforts that improve the customer experience but are often cost prohibitive for small, independent sneaker stores.
TJ Maxx hopes customers will 'revenge shop' to make up for a lost year. Rivals Under Armour and Adidas are following Nike's lead and also pulling back on the number of retail partners they rely on as they build up direct-to-consumer sales.
Under Armour UA CFO David Bergman said last month that the company "will begin to exit certain undifferentiated wholesale distribution, primarily in North America, starting in the back half of Losing Nike or other popular athletic brands can be a blow to shoe stores and clothing retailers. Nike is a top draw for customers and, without the brand, stores can struggle to compete.
Nike also owns the Jordan brand and Converse. But in , Nike "sent us a letter in the mail that we no longer fit their distribution goals," said owner Marty Nash. Other statistics on the topic.
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Corporate Account. Statista Accounts: Access All Statistics. Basic Account. You only have access to basic statistics. Nike dominates sport," Powell said. On a less tangible front, Nike has strong brand resonance. The company has become well-known for powerful, and gutsy, marketing campaigns , and has largely managed to withstand challenges to its image over the years.
Nike remains one of the top apparel brands for teens, even as others falter. Retail always has its favorites, which have impressed for one reason or another, and therefore remain closely watched by competitors and often praised by outsiders. Nike is certainly a favorite in its own space, but how much does the retailer make compared to other retail favorites? Ulta, which many have admired over the years, especially as former CEO Mary Dillon built up the company to what it is today, makes what amounts to a fraction of Nike's annual revenue.
As Saunders points out, Ulta serves mostly women, while Nike is both a men's and women's brand. Likewise, many of the companies highlighted above don't have the global scale that Nike does, as they are focused on the U.
That limits revenues and explains some of the discrepancies. The price of each item is low, but it sells a phenomenal number of products each year. When you think about it, the average household spends far more on food and household goods than on sneakers and sports gear, so it's not surprising that a food player can generate strong sales results.
For Home Depot, which makes about three times as much as Nike, the company operates in a much larger market and is the "clear market leader," Saunders said. Spending from professional tradespeople also helps bolster its sales further, as these are "massive industries, which spend a lot on home improvement products.
Nike is also a company rooted on product innovation, which gives it control and pricing power with customers and retailers.
The department stores outlined above fall into the same bucket as many of the retail darlings discussed: They are largely U. That alone accounts for a large part of Nike's revenue advantage, which amounts to nearly three times what Nordstrom, Macy's and Kohl's each make per year.
Even if the revenues from those three department stores were combined, Nike still edges them out. But department stores also face a more existential crisis as they try to find a place in a world that has in many ways moved beyond them, with players like Target filling the gap.
Nike still feels new and innovative, brands like Macy's and Dillard's just feel tired. While the model as a whole may be failing, even Nordstrom, which has been praised by many as one of the few department stores getting things right , falls well short of Nike's revenue mark. Nordstrom's annual revenues amount to less than a quarter of Nike's.
Although Nike's global scale helps it beat out many major retailers when it comes to revenue, looking at some of the biggest retailers in the U. Even excluding Walmart, whose scale is hard to rival, Target and Costco make well over double and triple, respectively, Nike's revenue.
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