Among its leading competitors are Adidas, Under Armour, and others, including Fila and New Balance. The brand has successfully utilized social media and marketing campaigns to target more customers. Nike demographics include a wide range of users, aged roughly from 15 to 45 years. In 2016, the late, great Gary Warnetts Nike SWOT analysis cited the brands business competitors as primary threats. Get in touch with us now. Each ratio value is assigned a score between -2 and +2 depending on its position relative to the quartiles Nikes executives all had lucid responses when I flagged these contradictions. It also offers a large sum on marketing each year that it calls demand creation expenses. Nike earned $8.3 billion from Greater China, $8.3 billion, and $5.3 billion from the LATAM and APAC regions. Here, learn more about how it outperformed all the others I tested. Over five decades, Nike has built itself into one of the most iconic global brands, instantly recognized by its Just do it tagline and swoosh symbol. Most surprising, though, was the positioning of the companys new raison dtre: to protect the future of sport an uncomfortably defensive phrase from the brand that gave us the gorgeous and limitless imperative, Just do it. Talking about protection implies a threat, a basis of fear that seems alien to the Nike vocabulary of possibility and human potential, of energy and power. While Nike has already benefited in this area by moving its business to the clouds earlier than its rivals, the company can gain significant leverage by sustaining its focus on technological innovation in the coming years. Its net revenue grew from $36.4 billion in 2018 to $39.1 billion in 2019. Description. The Space Hippies crater foam outsole contains 15% waste rubber, ground down into granules that add color and texture to the end product. Nikes cooperative spirit is well known as a company strength, of course, and its expanded community was out in full force in New York. The company's financial ratios are compared with the median of the ratios for all companies and for companies The company is providing its customers with an omnichannel experience and investing more in technology. We are happy to help. Cynically, there is a sinister opportunity in that fact: for Nike to let go of the future of sport and start making products for the future of the worst scenario. The averages are calculated using data from the 2020 financial statements filed with the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). Spending is . While its leading rivals including Adidas are also heavily focusing on quality, Nikes position and image are distinct from the others. (Statista) 5. However, the companys investment in its own digital sales and distribution channels has paid off during the coronavirus crisis. The result of the comparison may be as follows: Please note that this analysis does not indicate that the company's financial position is good or bad, but rather describes it in comparison to other U.S. businesses. The global athletic footwear market size was valued at USD 64.30 billion in 2017. If things get ugly, will the company regress its public image back to what it was decades ago, a big bad machine of capitalist pollution? While the situation has improved in recent years, its HR related issues are not entirely over, and the company should gain higher employee satisfaction through inclusion and diversity programs. Nike has excellent marketing campaigns. Being cool is what has allowed brands such as Nike or Apple to stand the test of time over several decades. Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line alone. Nike suppliers follow a code of conduct that ensures they are managing their labor force and sourcing raw materials responsibly. The Converse segment designs, markets, licenses, and sells casual sneakers, apparel, and accessories. These include weekend runners, who enjoy keeping fit on weekends and even training for a half marathon, and style shoppers, 20-something women who want to wear the latest sports fashion trends before, during and after workouts. Together, the three countries accounted for 27%, 22%, and 10% of Nikes apparel production during the year. This cookie is set by GDPR Cookie Consent plugin. It operates through the following segments: North America;. NIKE, INC. : Industry and sector chart comparison share NIKE, INC. | NKE | US6541061031 | Nyse. An activity ratio calculated as cost of goods sold divided by inventory. The rules of the game have changed in an era where pushing the cool factor too far can backfire. As part of a strategy to widen its target market, Nike often focuses on breakout psychographic segments. that year was over double the amount, reaching nearly $1.5 billion. The maker of athletic footwear, apparel . This cumulative thinking also applies to Nikes approach to sustainability, an area into which the company is investing with vigor and urgency, across the board. When considering how to create a successful marketing strategy, look no further than Nike. Its faster and robust growth is also a result of the heavy focus on marketing. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. The Nike target market is located worldwide, and the Nike age range is broad, from young teens through middle age. In the next five years to 2020 . Footwear Market Size, Share & Trends Analysis Report By Type (Athletic, Non-athletic), By End-use (Men, Women, Children), By Region, And Segment Forecasts, 2022 - 2030 Report ID: GVR-3-68038-396-6 Number of Pages: 87 Format: Electronic (PDF) Historical Range: 2017 - 2020 Industry: Consumer Goods Report Summary Table of Contents Segmentation The company is enjoying strong financial performance over the last several years driven by its focus on product quality, innovation, sustainability and customer experience. The companys supplier management practices have also played an important role in helping it manage product quality better than its rivals. This would help the company improve its employees performance and organizational productivity. Curiosity is the backbone of empathy. Dressing an athlete bound for the middle stand, according to Hoke, means equipping them for performance, but also for representing their team, family, community, nation, humanity, etc. The average Nike customer is a sports enthusiast, interested in leading an active and healthy lifestyle. Within the 30 components of the Dow Jones Industrial Average, only eight companies have experienced such buying over the trailing six month period, one of which was Nike. "ReadyRatios Financial Analysis" This profitability index is commensurate with a similar pattern in the company's revenues. If Nike has successfully shown itself to be the industry leader in performance and sustainability without one focus compromising the other it has yet to find a coherent way to talk about the climate crisis it purports to be responding to. 1988 Nike Poster Cards Andre Agassi - Ace of Hearts . The STP of Nike informs a wide-ranging set of marketing goals and objectives. The growing competition in the industry is an important reason Nike is spending more than ever on marketing and customer experience, driving operating expenses higher. . Its gross margin in 2019 grew to 44.7% from 43.8% in 2018. NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. Nike positions itself as a brand for athletes but pulls every consumer into the fold with its fundamental pitch: if you have a body, you are an athlete. Nikes popularity rests on the design and quality of its products which are produced by independent suppliers and contractors. NKE stock has declined from around $147 to $128 over the last year, underperforming the broader indices. As Nikes focus on customer experience has grown, the company is providing its customers with an omnichannel experience. I rated this classic Nike pick as the best sports bra overall in my larger review. The future of the company depends heavily on innovation. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. You want to know more. Theres no way that is going to look the same on every single shoe. The Space Hippies aesthetic of sustainability is in this sense on brand with Nikes traditional rhetoric of individual empowerment: your gear is now as unique as your athletic persona. For the first nine months of fiscal 2020, gross margin expanded 30 basis points compared to the first nine months of fiscal 2019. Addressing the problem of having to protect the future of sport in the face of fearsome catastrophe, Kinder offered the compelling solution of urgent optimism. Just because weve let the planet enter crisis mode, it says, does not mean we need to lose our heads or get fatalistic. This strategy helps create a brand image that reflects the aspirations of Nike customers, increasing brand loyalty, engagement and sales. Nike (NYSE: NKE) is the largest brand of sports shoes and apparel in the world with a global footprint. Customized Research & Analysis projects: . Use Forbes logos and quotes in your marketing. Most exciting, however, is the nascent opportunity for Nike to make a transition from a platform of competitive advantage, individual triumph, and essentially winning, to one of collective action, partnership, and as Hoke put it, empathy, which he believes is best cultivated in a climate of valuable difference. The most important key figures provide you with a compact summary of the topic of "U.S. footwear market" and take you straight to the corresponding statistics. Jide Adetunji and Ibrahim Kamara showcase the cutting edge of art, music, culture and fashion with their growing digital media brand, GUAP. As of November 30, 2020, the aggregate market values of the Registrant's Common Stock held by non-affiliates were: . Nike Inc. (NYSE:NKE) Analysis of Long-term (Investment) Activity Ratios Annual Data Quarterly Data Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The US is the largest market for Nike and in 2019, it accounted for around 41% of the net revenue of the company. Fourth quarter reported revenues were $12.2 billion, down 1 percent compared to prior year and up 3 percent on a currency-neutral basis* Global Athletic Footwear Market is expected to rise to an estimated value of USD 96.10 billion by 2026, registering a steady CAGR in the forecast period of 2020-2026. In fiscal 2021, Nike's direct revenue represented roughly 39% of sales for the Nike brand, up from 35% in the prior year. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. The word vapor is ubiquitous within Nike. While the counterfeits can be easily identified in most cases, they can still hurt Nikes sales and revenue. Apart from the growing competition in the industry, it also shows the companys increased focus on marketing. Its focus on customer experience has only increased with time resulting in growth in brand equity and profitability for the brand. New arena. The gross profit of the company grew to $17.5 billion in 2019 from $15.95 billion in 2018. However, considering the level of competition and how customers expectations have changed over the years, it is difficult for Nike to control operating expenses from growing in most areas. Nike has already jumped in ahead of Tokyo. As a sports shoes and apparel brand, Nike enjoys the strongest popularity of all the brands in the industry. These cookies track visitors across websites and collect information to provide customized ads. Complimenting Nikes speed is its endurance: in the last couple of years new mens and womens marathon records were set by athletes wearing Nike VaporFly, a technology introduced back in 2016. Since Nike is an early entrant in this area, it will reap the benefits of its investment in cloud technology and digitalization faster than its rivals. For a detailed financial analysis, please use One of the first things we did was really look at how to integrate sustainability within the company structure, said Kinder, who described a shift from a single sustainability team to multiple ones, installed not just in product creation and innovation, but in logistics and procurement, and soon in retail. It operates through the following segments: North America; Europe, Middle East & Africa; Greater China; Asia Pacific & Latin America; Global Brand Divisions; Converse; and Corporate. The company targets both male and female consumers, however, it continues to make significant investments in its womens line, focusing on leggings, sports bras and athleisure. The target market for Nike is located worldwide, mostly in urban centers. All Rights Reserved. Nike is known globally as a maker of premium shoes and apparel. Thats a next level of thinking that goes deeper and further to connect emotional design to its user, to the audience, and to an entire community that is watching. After the Games, however, Nike will have the opportunity or be challenged to develop the voice of the collective without the convenient umbrella of the Olympic ethos. , one of Nikes toughest competitors, spent $688 million on US-based advertising in 2019. Since 2019, the former Nike executive has returned Maserati to profitability with a plan to produce a complete line of EVs by 2025and possibly go public. In 2020, its revenue during the fourth quarter took a hit due to the pandemic, but the yearly revenue remained $37.4 Billion. Nike Target Market Segmentation - Customer Analysis & Marketing Goals for 2022. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Still, DTC sales account for just around one-third of its net revenues in 2020. Were lucky, because sports does kind of hit you in the chest, and theres a level of unscripted joy and drama. Relating to consumers by pulling their heartstrings is a longstanding strategy for Nike, frequently deployed in introspective and/or cinematic ad campaigns. The comparison is based While Nike has grown its push towards direct to consumer sales, it has depended traditionally on retailers and wholesalers to achieve sales globally. T NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. Last fall, Nike announced its Move to Zero scheme, pledging to power all facilities with 100% renewable energy and operate with net-zero carbon emissions. the quartile closest to the ratio value). The cookie is used to store the user consent for the cookies in the category "Other. This cookie is set by GDPR Cookie Consent plugin. Absolutely. Improvements have been steady on the level of the product, which is usually where consumers look for eco-friendliness: shoes and garments contain increasing percentages of recycled materials, but use less material in general; existing technologies and formulas predisposed to waste reduction have been scaled up. Theyre just getting started. Economic fluctuations in the global market can also hurt Nikes sales and profitability. (Theres no resupply on a mission to Mars, as another exec told Dezeen.) data than referenced in the text. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, , there is an overwhelming preference for Android devices. Nike has increased its focus on direct-to-customers strategy and cancelled its contract with Amazon to be able to collect its customer data. The Global Brand Divisions represents NIKE Brand licensing businesses. Consumers between the ages of 15-40 buy the most Nike products, including sneakers, apparel, and sporting goods. Like arch rival Nike, Adidas has seen its revenues evaporate in 2020. While Adidas has advanced fast in recent years and poses a formidable challenge before Nike, the industry leader has still maintained a strong edge over its rivals. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. It is why the company needs to invest in managing its female staff better and managing diversity in its workforce well. The Corporate segment consists of unallocated general and administrative expenses. towards community development, including womens empowerment, sustainability and diversity initiatives. This text provides general information. What To Expect From Nikes Stock Post Q3 Results? The growth of Nike can also be attributed to its focus on quality and investment in technologies that have helped it consistently improve the quality of products and customer service. Nikes revenue in 2019 reached $39.1 billion compared to $36.4 billion in 2018. Nike Inc. inventory turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. In 2019, Nike contributed. 1 It is expected to expand at a . The Flyknit-inspired space waste yarn used for the Space Hippie upper, for example, is 100% recycled, and the shoe is said to have the lowest carbon footprint of any Nike footwear creation ever. Moreover, increased competition has, to some extent, affected Nikes growth rate negatively. The Tax Act offset it revenue growth as Nike net income of $1.9 billion as a result of 54% decrease as compared to previous FY 2017. Yet what is more interesting is the space they create to explore the message through product design. The financial condition of Nike, Inc. in 2020 is better than the financial condition of half of all companies engaged in the activity "Rubber and Plastics Footwear" The same conclusion can be reached when comparing the Company's ratios to the averages for all U.S. industries. PDF | On Jul 5, 2020, Mohammed Almani and others published Financial Statement Analysis of NIKE | Find, read and cite all the research you need on ResearchGate The key component for any advertising or marketing strategy is a thorough customer segmentation, including demographic, geographic, behavioral, and psychographic attributes. 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. As the pandemics impact has been the strongest on the US market, its impact on Nikes revenue has been harsh since the US is Nikes largest market. The result was that Nikes operating expenses grew and so did its profits. In terms of athletic apparel, Nikes competition includes Lululemon, Athletica, and VF Corporation. , Apr 4, 2022. Are you interested in testing our business solutions? It does not store any personal data. So, who are the Nike demographics? Nikes leading strength is the brand equity the company has built over the years. Four leading contract manufacturers accounted for 61% of the companys footwear production in 2019. Technology has remained a key driver of change in the sports shoe and apparel industry and even more so in the last five years. Similar issues arise with Nikes relentless pairing of innovation and sustainability, which are semantically at odds what we are calling for is radical change, not preservation or maintenance. Get the best reports to understand your industry. The most surprising success of Nikes sustainability effort is the degree to which the message has been integrated well beyond its Flyknit and into the very fabric of the brand. Musicians and media personalities including Candace Owens and Ben Shapiro are among the critics blasting the beer company and Mulvaney. The pandemic has brought a major and long lasting impact in terms of consumer behavior and digital technology will become the primary driver of growth for Nike and its rivals. Like Nike, the demographics represent both sexes, with men outranking women 67% to 33%. You know youre killing it performance-wise when World Athletics starts regulating against your product because its too good. Its sales from direct to customer channels have also experienced faster growth in recent years. In fact, if you are Nike, you can lead the discourse by making up your own. In the past too, Nike faced some serious allegations and legal scrutiny over its treatment of its supply chain labor force. Please do not hesitate to contact me. We also use third-party cookies that help us analyze and understand how you use this website. This has led to Nikes outstanding financial success, Nike Target Market Segmentation and Marketing, The company targets both male and female consumers, however, it continues to make, significant investments in its womens line. The dependence of customers on digital sales channels has grown but the company might take some years till it has achieved an equal proportion of sales from both channels. The company has been growing consistently over the past several years. As a result of the analysis of the key financial ratios of the Company, we have established the following. The companys operating expenses, including the amount spent on technology and marketing and sales, have continued to increase year on year. Nikes products dont just break records, they change the rules of the game, impact the way we define athleticism, and perhaps, shape the conceptual silhouette of the athlete itself. Running Equipment Market Global Industry Analysis, CAGR Status and Forecast to 2023 to 2030 | Adidas, ASICS, Nike, Puma Published: April 19, 2023 at 2:59 a.m. Inventory turnover. Nike is a highly competitive brand just as it is highly customer centric. The brand is dependent mainly on one market for the highest portion of its sales and revenues. Moody's Investors Service downgraded 11 regional lenders Friday, suggesting higher interest rates and recent bank failures have ushered in greater instability.. Get in touch with us. Whats threatening Nike in 2020 is whats threatening everything else: the death, by fire, of the entire fucking planet. Nike has the annual revenue of $36.4 billion in financial year 2018 with a market capitalization of $120.3 billion and 11000 stores worldwide. In countries like India, Brazil, and Mexico, a large group of middle class buyers has emerged in recent years. It was founded on January 25, 1964. Nike also strongly targets the youth demographic, noted as the favorite footwear and apparel brand for teens in 2019 in the US. For fiscal 2020, NIKE, Inc. gross margin decreased 130 basis points as higher full-price average selling price (ASP), on a wholesale equivalent basis, was more than offset by higher product costs due to incremental tariffs in the U.S., as well as factory cancellation charges, higher inventory obsolescence reserves and the negative rate impacts . . Another major benefit for the brand is that it will help Nike reduce its dependence on retailers and distributors.