how much is the nike brand worth?
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how much is the nike brand worth,
When describing how much a business is worth, you’ll have to look deeper than just the company’s share price. Companies often split their stock price to keep it in an affordable range and make it more attractive to investors. Nike is no exception to this practice, as it has split its stock six times in its history. So, if you can’t value Nike simply on its share price, what’s the answer? One popular metric is market capitalization. As of the close of business on Oct. 10, 2019, Nike’s market cap was over $116 billion.In 2021, the Nike brand was valued at approximately 30.44 billion U.S. dollars, which was a decrease of over four billion U.S. dollars from 2020.
Although Nike is currently the world’s largest retailer of sporting apparel, it started out as a humble shoe-making operation by University of Oregon track-and-field coach Bill Bowerman and former student Phil Knight. Originally known as Blue Ribbon Sports when founded in 1964, the company released the first Nike-branded shoe in 1972. Nike went public in 1980 and has been a name known the world over ever since. In October 2019, it was announced that CEO Mark Parker would be stepping down and John Donahoe would be taking over the role.
Nike’s popularity
Nike’s footwear segment was the source of the most revenue for the company in 2020, netting over 23 billion U.S. dollars that year. Among U.S. consumers, Nike was the most popular sports shoe, ahead of its main competitors Adidas. In recent years, Nike’s popularity has expanded beyond the United States, with non-U.S. markets bringing in an increasing share of the company’s revenue.
Nike’s advertising
In order to remain such a recognizable brand, Nike spends an increasing amount of money on advertising and promotion. The company had costs of 3.5 billion U.S. dollars in 2020. The company prides itself on its memorable ads and is viewed as a diverse advertiser by U.S. audiences. In 2021, Nike was among the most popular brands on TikTok, with over one million followers.
Nike Brand Growth
In the first year of Business, BRS sold 1,300 shoes, earning $8,000. BRS went on to generate about $20,000 from sales in the following years. In 1966, BRS first store opened. In Santa Monica, California, the company’s first store on 3107 Pico Boulevard was a litmus test in retail shoe selling. Increased sales led the brand to expand its reach to Wellesley, Massachusetts.
By 1971, BRS ended its partnership with Onitsuka Tiger and began the manufacture of its shoes. BRS seeking to rebrand, changed its name to Nike, Inc, in May 1971. That year, the famous Nike Swoosh logo was designed by graphics designer, Carolyn Davidson. The logo was first used in June 1971, and registered with the US Patent and Trademark Office, in January the following year.
1960 Summer Olympics Gold medalist, Otis Davis, claimed that Bill Bowerman made the first Nike shoe, for him. Seeking to extend its reach nationwide, Nike hired John Brown and Partners to lead its advertisement campaign. The ad agency came up with the mantra, “There is no finish line.”
Nike experienced rapid success by 1980; the company had a 50% share in the US athletic shoe market and, thus, had its IPO in 1980. It switched advertising agency to the famous Wieden+Kennedy, in the 1980s. The company’s co-founder, Dan Wieden, is the brain behind the first-ever Nike “Just Do it” advert, which premiered in 1988, and became viral in mainstream media.
Nike Brand Growth
The success Nike experience in the 1980s led it to spread its tentacles to other sports and sales to other countries. Over the years, Nike has been involved in the acquisition of promising sports manufacturing companies, such as it’s 2004 acquisition of sneakers company, Converse for US$309 million.
It has had various leadership and policy changes over the years. Notable of such is the company’s decision to stop the sales of its product via Amazon in 2019. One factor that has helped Nike develop into a very successful Athletics brand is the creative use of endorsements from stars. The first-ever athlete endorser for the brand, was Steve Prefontaine, a student of co-founder Bill Bowerman.
Nike particularly benefited from its athletes’ endorser in 1984 when they signed NBA star Michael Jordan, who endorsed the brand’s shoe throughout his career. The endorsement had massive success as the Nike Jordan shoe brand has generated over $1 billion in sales. The company spends hugely on endorsements and receives corresponding significant returns. That is evidenced by a CNN report in 2018, which states that Nike spent $11.5 billion on endorsements and marketing.
The surprising story behind Just do it, NIKE’s iconic tagline
In 1987, Nike was preparing to launch its first major television campaign, which included commercials for running, walking, cross-training, basketball and women’s fitness.
Creative agency Wieden+Kennedy had been hired to create and run the campaign. Each spot was developed by a different creative team and Dan Wieden, founder of the agency felt the campaign needed a tagline that would bring everything together.
In a 2009 documentary about advertising, Dan confessed that he took inspiration from a convicted murderer’s last words to the firing squad before his execution: “Let’s do it!” Nike didn’t feel like the campaign needed the tagline but allowed it nonetheless.
Just do it is among the most popular taglines in the world. In just three words this simple tagline empowers athletes everywhere to stop overthinking and just take the first step. That’s all there is to it. Why? Because if you have a body, you are an athlete.
Nike does it again
Nike has retained the title of the world’s most apparel brand for the 7th consecutive year, despite recording a 13% brand value drop to US$30.4 billion. The brand still maintains a considerable lead over second-ranked Gucci, with a brand value of US$15.6 billion, down 12% from 2020.
Nike’s sales took a hit last year as the brand was forced to shut the majority of its stores across North America,
EMEA and, Asia Pacific due to the pandemic. The brand saw an impressive uptick in online sales, however, which almost doubled in Europe, the Middle East and Africa.
Nike – a brand eminent in innovation – has continued to make leaps and bounds with new technology in its products, most significantly the controversial Nike Vaporflys,
a shoe that has dominated the international athletics arena in recent years, with athletes wearing them claiming 31 of the 36 podium positions in the six world marathon majors in 2019. With the shoe surviving a ban for the now-postponed Tokyo Olympics,
And can once again showcase itself as a brand that has helped to change the face of world athletics and sport.
Nike Awards
Nike won 2 awards in 2019 and 3 awards in 2018. In 2019, Nike won for Best Company Perks & Benefits and Best Company Compensation. In 2018, Nike won for Best CEO 2018, Best Company Compensation and Best CEOs for Diversity. Based on 6,340 ratings and 455 participants, employees at Nike are satisfied with their work experience. The overall culture score, 72/100 or B, incorporates employee ratings based on their feedback on the Leadership, Executive Team, Retention and more.
Michael Jordan Net Worth 2021
Michael Jordan is not only widely regarded as the greatest basketball player of all time,
but he is also one of the most successful brand endorsers ever.
The American basketball legend won six NBA Championships with the Chicago Bulls between 1991 and 1998,
and continues to be an inspirational figure for many.
His on-court success in the NBA as well as his his money-spinning deal with Nike have seen him establish himself as the richest former professional athlete in the world.
What is Michael Jordan’s deal with Nike?
Jordan’s current net worth stands at a total of 1.6 billion dollars,
and here we look at his deal with Nike.
Back in 1984, he signed a contract with Nike,
as the US brand agreed to an upfront commitment of 250,000 dollars and his own sneaker line.
At the time, Nike were a fledgling company that were struggling to compete with the likes of Converse and Adidas,
but seized their moment when Converse failed to agree to Jordan’s demands.
That year alone, Nike earned 126 million dollars as a result of the deal,
and they have continued to earn eye-watering sums ever since.
why is nike successful?
Nike is successful because of its marketing strategy, brand recognition and research into changing consumer demands,And has continued to grow by targeting both male and female athletic wear consumers and expanding product offerings into every available market.
Nike has used a strategy of brand recognition for many years. The slogan “Just Do It” has been in use since the mid-1980s. This slogan in concert with the Nike Swoosh logo have helped to create an easily recognizable product.
Nike has also made effective use of sports sponsorships. Nike sponsors a multitude of sports associations including the NFL and NBA, as well as colleges and events such as the Olympics. The company has also employed some of the biggest sports stars since the 1980s. Michael Jordan was one of the company’s earliest and most popular spokespersons. Jordan was so popular that he continues to have a line of clothing and shoes with Nike years after his retirement as a professional basketball player.
Finally, Nike makes use of all available markets to increase their revenue margin. One large outlet for Nike internationally has been its emergence, market share and investment in the Chinese economy. It has also continued to expand its offerings to become more appealing to female athletes.
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