From basketball legend Michael Jordan to the greatest footballer Cristiano Ronaldo, lets look at some of the most expensive Nike endorsements. Nike's fiscal year runs from June 1 to May 31 of the following year. 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. Nike, a brilliant storyteller, has created the sense of belonging for any of its customers for almost 50 years. Use Ask Statista Research Service. 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. Be fearless and just do it with your marketing strategy, like them. As a Premium user you get access to background information and details about the release of this statistic. Nike's endorsements with LeBron James (NBA), Kevin Durant (NBA) and Cristiano Ronaldo (Football) are valued at $30 million each. Followed by Federer, Nadal is the only player to win 20 Grand Slam titles in his career. MJs paychecks climbed as the Jordan Brand got bigger. (Statista). Nike had a hit on his hands. Is there anything more particular about their marketing strategies and tactics? (Investopedia). These are big questions to answer, but the essential point is to go where your audience is. 2023 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Bloomberg Business Week noted that as of 2012, the retailer spent 13.5 percent of total company revenue on these marketing efforts. Like in the picture above, Nikes website would automatically recommend relevant products to the product that the visitor is viewing. 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. The golfer earns more than $50 million a year from his endorsement deal. 2. In 2018, Nike ended the agreement when the athlete admitted to having failed her doping test, as stated by Inside Sports. Customers can have positive or negative conversations about the brand, however, Nike knows social media conversations like those are one of the purest kinds of customers conversation and feedback. She has the Career Grand Slam: Australian Open, French Open, and US Open, along with a silver in the Olympics. The Beaverton, Oregon-based company has partnerships with many of the most talented and famous athletes in the world. A post shared by Cristiano Ronaldo (@cristiano). Manufacturing costs typically stay low. The endorsement all started at the beginning of Jordan's NBA career. 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. Long live the King. 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. 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. Statista. Being a big brand in a multitude of industries, Nike has collaborated with many celebrities and influencers. Business Insider: 25 Nike Ads That Shaped The Brand's History, The Richest: Top 12 Biggest Nike Endorsement Deals of All-Time, Forbes: How Michael Jordan Made $90 Million In 2013, ESPN: Steep Price Paid by Nike Likely to Pay Off. Nike also target highly marketable athletes across popular global sports with large social media followings such as golf legend Tiger Woods, Brazilian soccer star Neymar Jr and NFL wide receiver Odell . In 2017, he also launched the Nike Mercurial Vapor XI Neymar FG cleats. Currently, you are using a shared account. 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. In the other hand, . 10 best celebrity ads of 2021 . Nikewomen is a particular channel for women on Instagram. You only have access to basic statistics. Nikes stock value grew 183% from 2017 to 2021. Nike's endorsement spending . Everyone knows Nike. You need at least a Starter Account to use this feature. She's hyped Windows 95, Diet Coke, Smartwater, and more recently, Aveeno. If you go to these two pages, you will see perfectly corresponding voices as well as actions that Nike speaks and does. Nike operated over a thousand stores worldwide. Many popular brands suffer from the counterfeit goods market. Federer made $90.7 million between 2021 and 2022 . 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. Tiger Woods & Nike. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. MJs brand shows no signs of slowing down. You can only download this statistic as a Premium user. No better endorsement deal in history has been as popular and lucrative as Michael Jordan and Nike. As soon as this statistic is updated, you will immediately be notified via e-mail. has always been Jordans biggest backer, both financially and marketing-wise. Doing some research first definitely helps. Nike spent $1.47 billion on marketing in the United States. If this all seems like a lot of information for you, thats because it is. The ideal entry-level account for individual users. According to the company's annual report for 2021-22, Nike is the world's largest seller of athletic footwear and apparel. The top nine models were all made by Nike. (Statista) 2021's Nike brand value was one of the lowest recorded in years. Learn more about how Statista can support your business. Lets see what sort of marketing strategy Nike used to achieve and maintain their status of a markets dominant player. What put them on the map of the most popular brands include many intelligent marketing approaches. 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. Converse was the brand of choice for NBA stars Magic Johnson, Larry Bird and Julius Erving. Nike has always put an emphasis on the imagery of their marketing strategy. Namely, Beckham has one of the biggest endorsement deals in the NFL right now. These deals have earned players more money outside the sports, with the magic word being sports endorsements. Distribute storytelling across social media channels. Nike operated 338 retail locations in the United States. Sponsorships and celebrity endorsements can make or break a brand, and Nike invests . Nikes owners did declare the uniqueness of the brand shoes with three points, by which customers can easily decide whether to buy Nike shoes or find another brand. [Online]. Bloomberg Business Week noted that as of 2012, the retailer spent 13.5 percent of total company revenue on these marketing efforts. As a global powerhouse in athletic footwear and apparel, Nike knows their consumers are picky about what their products can do. The stunning visual is shown on Nikes website as well, I mean, just look at the picture above. His net worth in 2020 is estimated at $25 million. ", 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. In this article, Ill share with you everything you need to know about Nikes marketing strategy and what you can learn from them. 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. Being a reputable brand, Nike undoubtedly gains a lot of attention from the influencer community without sponsoring. Sharapova had signed an 8-year Nike deal worth $70 million in 2010, which earned her $8.75 million a year. Home Business Nike SWOT Analysis (2021). [Online]. All Rights Reserved. Hailing from Ireland, McIlory has become the face of professional golf in recent years. In terms of your overall marketing strategy, this means** figuring out where your audience hangs out and seeing how you can best reach them. And content is the core element of any marketing strategy as well. "Global Revenue of Adidas, Nike and Puma from 2006 to 2022 (in Billion Euros). 3. Just focus on delivering values to your customers life by using your products. Endorsing celebrities to use Nike products and wear the brands clothing helps to enhance the brand image. Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line . Economists Christopher R. Knittel and Victor Stango found that Woods' portfolio of sponsors lost around 2 percent of their market value 10 to 15 trading days after the scandal. Nike has become synonymous with celebrity endorsements and sponsorships. (Statista). Business Solutions including all features. 2. The company renamed itself Nike, Inc., in 1978 and went public in 1974. January 31, 2022. Then you can access your favorite statistics via the star in the header. It currently only owns one other major brand: Converse. To use individual functions (e.g., mark statistics as favourites, set It is the richest athlete endorsement deal ever but also arguably the biggest bargain given that Jordan helped transform Nike from a scrappy underdog into one of the largest, most valuable consumer brands in the world. Laura Woods is a Los Angeles-based writer with more than six years of marketing experience. Are you interested in testing our business solutions? Intellectual property is incredibly important to any retailer, but especially to a powerful brand like Nike. How to Get Your Car Sponsored Professionally. 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. (Statista). #2 Feature collaborations with celebrities. Nike benefits from a well-established brand image that is beloved by most of the market. Show publisher information The company depends on the customer behavior data collected from multiple sources to optimize their products and services. Over the years, Nike has spent generously on sports endorsements with athletes ranging from football to golf. Considering this, What commercials are celebrities in? Female executives at Nike exposed a culture plagued by sexual harassment, leading to resignations from other male leaders. Nikes share of the performance basketball market, including the Jordan Brand, was 86% last year, according to market research firm NPD. Make sure your M2 store is not only in good shape but also thriving with a professional team yet at an affordable price. Revenue figures for Nike were converted from USD to Euros at an exchange rate of 1 USD - 0.913 Euros (April 19, 2023). Marketing Science Institute: Are Celebrity Product Endorsements Worth the Investment? The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line alone. Nike lost 5% of its global revenue between 2019 and 2020. This market is potential and the consumers are supposed to be serious about their purchase decision. Digital is fueling how we create the future of retail - Nike CEO Jon Donahoe said. Nikes market cap of $136 billion is three times the size of Adidas. RELATED:Here's How Tennis Legend Rafael Nadal Spends His $200 Million Fortune, A post shared by Kobe Bryant (@kobebryant). With a robust follow up email marketing app, your business can do the same. Please do not hesitate to contact me. Who was Nike's first endorsement? Nikes SEO strategy is also top-notch. This Sunday explores MJ as a global endorsement phenomenon, with ad slogans like Its Gotta Be The Shoes and Be Like Mike.. When & How to send a Follow-up email? Competition continues to be fierce in the market. 2021. Retail sales worldwide for apparel and footwear reached $1.9 trillion in 2019. Lebron James is currently one of the highest-paid athletes in basketball with endorsement deals with top brands such as McDonalds, Samsung, and Coca-Cola. As a Premium user you get access to the detailed source references and background information about this statistic. If an eCommerce business can provide an excellent shopping experience, consumers will naturally recommend the brand to other shoppers. As mentioned by Forbes, Nike made him the brand's face and has offered him a $1 billion lifetime deal similar to Lebron James. In, Nike. 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. 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. It can rely less on other vendors and retailers. Professional athletes have arguably the best career in the world as their impact goes beyond the field of sports. 6. International trade could become a pitfall. With expectations of making $3 million in sales in the first year, Air Jordan's earned $126 million. Nike is no exception to this, and cracking down on counterfeiters is a never-ending battle. Nikes brand value across the globe was $34.8 billion. You may opt-out by. This means that Jordan brand incorporates more value . Nike outperformed competitor Adidas in revenue by 69%. Social media platforms are one of the most low-cost but effective tools for social hearing, where the opinions are authentic and objective. 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 . Chart. However, like many brands, it has both strengths and weaknesses, and faces obstacles it must rise above in order to maintain its success. Nike has acquired and divested a number of companies over time, including Cole Haan and Hurley International. It can sell directly to customers more. 2. If you are an admin, please authenticate by logging in again. 5. . Counterfeits and copycats remain a threat. The first Air Jordan sneaker hit stores the following year and racked up more than $100 million in sales its first 12 months. NIKE MARKETING STRATEGY: WHY NIKE IS A MARKETING LEADER? Associations with top athletes like Roger Federer, Michael Jordan, Carmello Anthony and Cristiano Ronaldo allow the company to enjoy a high level of prestige. PUMA figures come from the company's yearly group management report. 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. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to shoe database site Baller Shoes DB. 2021). Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) [Graph]. Make sure youre prepared in your approach when it comes to spreading your content. Is that, however, everything that Nikes doing? 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. Copyright 2023 by Mageplaza. Nike has recently made drastic moves to sell directly to consumers, opening its own retail storefronts and even selling directly online. oing this well requires you to understand exactly what your audiences goals or pain points are and what they want to know. (Statista). 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. The stronger the brand is, the quicker people can relate it with a differentiated characteristic or product. He had a close relationship with Nike and encouraged Jordan to hear the companys pitch. Luka Doncic, to promote the Jordan Brand. We are inspired by her leadership today and are behind her every step of the way.". Following is a post on the channel. 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 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. Let us make it fit your unique demand! 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.". 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. Only from $15/hr, With a big catalog of 234+ extensions for your online store. You will be surprised to find out that shoes are not the only thing that has brought Nike this far. Any ordinary woman who is interested in self-care might possibly feel involved in the community and also, attracted to the brand who shares the message. His mission, as well as the brand mission in those days, might have been creating shoes for athletes. Many companies are looking overseas to other markets to increase their revenues. Are you interested in testing our business solutions? Use Ask Statista Research Service. 1. A shoe must be three things, It must be light, comfortable and its got to go the distance. - Bill Bowerman, co-founder of Nike. How has Nike been guiding its customers through the online shopping experiences smoothly? Jordans agent, David Falk, who coined the phrase Air Jordan, had other ideas. Woods signed a five-year contract for $100 million in 2001, and his current contract stands at $200 million. 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. In 2021 alone, Nike's advertising and promotion costs amounted to approximately 3.11 billion U.S. dollars. Profit from the additional features of your individual account. The firsts qualities of Nike that people can think of are being lightweight, comfortable, durable, and supportive. Get full access to all features within our Business Solutions. Few stars have risen higher than Beyonce and in 2012, her global celebrity translated into a multi-year, $50 million contract with Pepsi. NKE But hardly anyone understands how mighty Nike is compared to other global sports brands out there, like Adidas, for example. His skilled game on the field has earned him an army of fans who follow everything he does. Woods has been a Nike spokesperson since 1996, and in 2001, he signed a $100 million deal spanning five years -- one of the most expensive sponsorship deals in history. 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. Get full access to all features within our Business Solutions. Nikes share of the performance basketball market, including the Jordan Brand, was 86% last year, according to market research firm NPD. 6. Actual payments under some contracts may be higher than the amounts listed as these contracts provide for bonuses to be paid to the endorsers based upon athletic achievements and/or royalties on product sales in future periods. The Nike loyalty program is a club where Nike customers or fans can receive exclusive benefits. (Statista). 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. 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. 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. 4. 3. Michael Jordan and Nike. (Statista). How Nike distinguishes themselves from other shoe brands depends heavily on the marketing strategy. Nike eventually offered a five-year deal with base pay of $500,000 per year, triple any other NBA sneaker deal. 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. Tiger Woods has amassed a net worth of $800 million through his endorsement deals. Cristiano Ronaldo is the most sought-after celebrity in the world with several endorsements under his belt. Its actually a genius collection of marketing strategies for every aspect of the brand. It maintains other valuable brands. Nike spent nearly $1 billion on endorsements in the 12 months that ended in May, according to filings. Before the Covid-19 pandemic, the brand only projected the number would be 30% by 2023. How to Write a Follow-up Email? (July 20, 2021). Nike has the most dominant market share in North Americas athletic apparel industry (around 27.4% and, recently, own a whopping 96% of the market for basketball shoe industry), and continues to outpace the competitors when it comes to sales: Nikes basketball sneakers Air Jordans brand generated over $3.14 billion in the 2019 fiscal year, up 10% from the previous year. That's mainly because of her successful endorsement career. Expensive Endorsements. Its base product line touches most parts of the market. 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. 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. In 2016, the Daily Mail reported that then-18-year-old and very rich Kylie Jenner signed a $1 million deal to serve as a brand ambassador for Puma . Please do not hesitate to contact me. Kevin Durant inked a seven-year, $60 million deal with Nike that included a $10 million signing bonus. Adidas employed over 60,000 people worldwide in 2021 and, just as with Nike, footwear is the most important category for Adidas. With a combined 25.3 million followers on the major social media platforms, Westbrook is one of the most influential Nike-sponsored athletes. It has been vulnerable to lawsuits. 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 fact, Nike was able to recover 57 percent of its $181 investment in Woods solely through U.S. golf ball sales. 1 overall draft pick straight out of high school cemented Lebron as the biggest endorsement opportunity since Tiger Woods. Please create an employee account to be able to mark statistics as favorites. 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. Tiger Woods. Nike has frequently fallen under fire for working conditions in its overseas factories. Another feature that improves the eCommerce shopping experience of the website is the product filter. Nikes annual revenue still grows steadily year after year. Nike has filed suit against companies citing patent infringement, including against Adidas and MSCHF for its Lil Nas X shoes. Chart. The shoe industry was significantly revolutionized once Nike entered the business. 4. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to. Its clear that the crisis has pumped up the development of Nikes e-commerce strategy significantly.

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