Nike 's Brand Value For Shoes, Apparel, And Manufacturing Industries

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Introduction Nike Inc. is a global powerhouse in the athletic apparel, equipment, and manufacturing industries. While it covers so many customer bases passed these industries, Nike has its most success with footwear and apparel. For example, Nike boasts a 33.6% market share in the footwear industry with over 4.3 billion dollars in sales through the second quarter of 2015 (Nike Financials). Nike revenues for shoes, apparel, and all other athletic equipment and services overshadow all other competition in the market. The financials that will be analyzed in this document will prove that not even one of Nike’s toughest competitors (Under Armour) has the resources and brand value to overtake Nike in the market. The reason Nike has had…show more content…
Consumers are not only wanting shoes and apparel to work out, but they also want their products to be fashionable. For example, kids aren’t just buying basketball shoes to play basketball in. Kids buy basketball shoes to wear to school because they are fashionable. This along with other examples have allowed Nike, along with other companies to produce a premium product with higher price points, and ultimately higher profit margins. The athletic apparel industry as a whole, including shoes, is over a 150 billion dollar industry in 2015, and is only projected to steadily increase over the next few years (Statista, 2015). The most impressive thing about Nike being so prominent in the apparel market is that industry rival, Under Armour was the original innovator of athletic apparel. In 1996 Under Armour was founded based off of a product that gave athletes a better alternative to the cotton shirt. Their “moisture-wicking” material that fights off sweat revolutionized the industry. Nike, along with other competitors followed in their footsteps. Since Nike already had the brand loyalty, they were quickly able to create these products and make them prominent in the market. The barrier to enter this market is very strong and nearly impossible to get through. Industry leaders such as Nike, Under Armour, and Adidas have been so successful that the only way to enter it would be
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