Nike: When Perception Outpaces Product

Nike is God’s favorite when it comes to marketing. Yet the brand’s fallen to its lowest earnings multiple of 10+ years. All while we were expecting a sales boost with Olympic year.

What’s off?

PERCEPTION has outpaced PRODUCT for too long.

Take the Olympic Village —

Nike dominated the Team USA Welcome Experience. In a gifting suite packed with activations from brands like Skims and Oakley, it was Nike that found airtime on every athlete’s social media thanks to its changing room experience: LED backed mirrors that dynamically displayed each athlete’s name once they had their Nike gear on.

Personalized and unexpected. UGC went crazy. Classic Nike brand marketing.

Their product though, hasn't kept up with the pace of culture.

The 5 most expensive Nike sneakers ever sold are all from either the Michael Jordan era (i.e. Dynasty collection for $8MM via Sothebys) with one rogue pair of Kanye Yeezy prototypes circa 2008 in the mix.

Nike has held down the marketing throne, but new product development kept up.

PERCEPTION + PRODUCT make a business. Keep the pulse on both.