Relaunch

All empires eventually fall. New powers arise, and loyalties and interests shift. Even the most elite runs of command over competition like Nike had from 2008 to 2015 are not immune to any of this. In 2016 Nike experienced what it is like to be on the other side of brand ascension. However, no one could have expected it to be as severe as it was. In 2016 Nike basketball profits dropped over 50%, from 3.7 billion in 2015 to 1.3 billion in 2016. As discussed in a previous article, Recapture, which can be read here the time period that preceded this decline was utterly dominant. In every aspect, Nike had been lapping the competition. The fashion and performance of the products had been at an all-time high. That’s an impossible act to follow even if it is your own. Business success is not linear, there is a cyclical nature to it. Highs and lows are a part of the process, and combined with ever-evolving consumer tastes lulls are to be expected. While consumer purchasing habits can’t be explained with a single bullet point, perhaps the strongest factor in Nike basketball’s steep sales decline stems from something Nike’s CEO discussed long ago. A large majority of Nike’s consumers purchase the product and never intend to use it for the sport it was designed for. Towards the late 2010s trends began to shift, from flashy styles to monotone minimalism. No other individual better creates designs under that umbrella than Kanye West. The Yeezy revolution had begun the year prior with the release of the “Yeezy Boost 750” and the same consumers that previously rocked Nike basketball products opted for the Adidas x Yeezy.

Consumers aren’t the only thing that is to blame when business slides. The burden of delivering meaningful products rests on the shoulders of the company. In a market as competitive as the sneaker market, the best is required year after year to remain affixed to the throne. Nike became lazy, lacking the drive that marked the 2008-2015 run. One might even go as far as to say they rested on their laurels. In the seven years that have passed since Nike basketball fell off the brand has delivered very similar and unexciting products. For example, the KD 9-11 and 12-14 were the same shoes. The Lebron line fell into this as well, with the 14-18 being nearly identical. Nike also lost partnerships, (think Kyrie Irving, for good reason, and Kobe Bryant, God rest his soul) Nike even discontinued the Hyperdunk. The past seven years have felt like Nike has been content to hit copy-paste. All of this is true, however, give credit to Adidas, which at that time was booming as a result of product innovation and risk-taking. The combined pressure of Adidas’s newfound success and their own previous success caused Nike to falter, and with each new release consumers continually balked. 

Perhaps the primary cause behind Nike Basketball’s decline is a lack of connection to consumer trends. Nike has long been the trendsetter, in the years since 2016 the brand has struggled to identify and keep up with trends, much less set them. Much like the early 2000s Nike has been stuffing as much innovation into shoes as possible. For world-class athletes like Lebron and KD, this is great, but for consumers not so much as it results in higher price tags. Nike’s basketball shoes average about $180 to $220 which is on par with Retro Jordan releases. The difference is that with performance basketball shoes the wear and tear is greater and thus they do not last as long as the casually worn Jordans. This makes the hefty price tag harder to justify. Under Armor found success with the Curry line, which offered the same shoes worn by Golden State star Stephen Curry, while maintaining an affordable price point. While both irrelevant designs and poor resonation with consumers have plagued Nike for nearly a decade, a brand with as much history and staying power should never be written off. Nike possesses the power to come storming back. Lately, we’ve seen glimpses of this. 

Is a Nike basketball resurgence on the horizon? That remains to be seen, the proof will have to be in the pudding. Potential cannot be substituted for results. However, there have been recent rumblings that point to an awakening in Beaverton. Nike has recognized what the consumer wants. The re-signing of Kobe Bryant’s estate and the retroing of Lebron and Keven Durant products shows that Nike is listening. Over the past two years, Nike has been quietly assembling the tools to once again own the market. Bringing back old favorites is only one aspect of Nike’s comeback plan. There has also been an identification of trends and consumer preferences. Nike Basketball currently only sells two high-top models, the “G.T Jump,” and the Jordan 38. In addition on Nike’s website, the first high-top option is eight rows from the top. Nike is not only catering to the new low-top craze it is burying high-top options. This is important because over half of the NBA’s players wear low-top shoes. Inside Science breaks down exactly why low-tops have become more popular. As with everything in basketball, anything happening at the NBA level trickles down and gets picked up at all levels below it. Meaning, in this case, more and more college and youth basketball players are also wearing low-tops. Nike has also brought on new signature athletes that have breathed new life into the basketball division. Ja Morant and Sabina Ionescu have already released their debut silhouettes. These have been met with great enthusiasm. Devin Booker, another new addition to the Nike signature is preparing to release his first model early next year. Nike has also introduced a new line the G.T Cut which seems to be poised to become what the Hyperdunk once was. All of these new projects offer some very exciting products and more importantly, have found some identification with consumers. 

Last month in New York City, Nike hosted the “World Basketball Festival.” At the center of Lincoln Center in NYC, Nike unveiled the latest and upcoming product to the world. Here they touched on the products but also the culture of the game. This is something that has been glaringly absent in the basketball division at Nike. They had top high school talent from around the country compete in a tournament. Leaning into the next generation of basketball players and the culture they bring to the table. The energy the event created was something Nike had not been able to generate for nearly a decade. Seemingly ushering the new era of Nike basketball the festival brought together young and old members of the Nike family, from Victor Wembanyama to Jason Kidd. Nike hopes to catapult from this moment into their next great run in the basketball marketplace. Obviously, only time will tell but for now, it seems they have good reason to hope as they seem poised to once again dominate. We will have to wait and see if the mission is successful, but one thing is certain Nike Basketball is a go for relaunch.