What The Hell Has Happened To Nike Basketball?
Nike may have started off as a company focused on selling running shoes to Americans, but it’s built a legacy on taking over the basketball market. NBA legends such as Michael Jordan, Charles Barkley, and Penny Hardaway have all had memorable sneakers over the years, which have become the literal foundation that much of modern-day Nike is built on. This mentality has led the brand to scoop up current NBA superstars such as LeBron James, Kevin Durant, Kyrie Irving, and the recently retired Kobe Bryant, making the basketball business one big arms race to secure the top talent away from competing companies. But the brand has been slipping lately.
Its Basketball division has been slumping—not to mention, it failed to re-sign Steph Curry—and its head exec, Michael Jackson, just recently resigned.
So the big question everyone is wondering: Where did Nike’s business go all wrong?
For the insiders paying attention, a report came out that said Foot Locker was having trouble selling Durant and James’s sneakers. "Primary losses came in LeBron and KD product, a challenge which we've been addressing with our partners at Nike," the retailer's CEO, Dick Johnson, revealed on an earnings call.
The main reason behind the slumping sales for both Nike’s LeBron and KD lines was the price points of the sneakers, and rightfully so: The LeBron 13 retails for $200 (previous LeBron sneakers have costs as much as $300), while the Durants go for $180-$200, which puts them in the same ballpark as retro Jordans. But that’s expected, right? They’re performance basketball shoes with brand-new technology, not old sneakers that have been re-released for the fifth time. But somehow, some way, the product wasn’t flying off the shelves like it did in the past.
Remember when Nike Basketball, with its current roster (sans Kyrie), was absolutely killing it? There were limited-edition LeBrons, KDs, and Kobes dropping on a regular basis and selling out on the same day. Those days have long gone, except for brief flashes of certain Kobe Bryant sneakers.
There’s not one specific cause for Nike Basketball losing some of its steam. The brand is still bigger than Under Armour and adidas, but both of those brands have made big moves.
Under Armour’s basketball sales are up by over 700 percent after signing Steph Curry, and adidas just threw a ton of money—$200M to be exact—at James Harden, which ultimately created buzz for the company’s much-maligned segment of its business.
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