Adidas became the second-best seller of footwear in the US. It passed Nike’s Jordan brand which tracks separately from other Nike brands. This is good news all around for Adidas, its sales grew 20% thru the second quarter of 2017 and its stock is up 50% this year. Although Nike still sells more than Adidas over all, the decrease in its major Jordan brand is a telling sign. Nike has only had a rise in 6% in its stock value this year. These recent changes have all been attributed to marketing decisions.
Marketing for athletic footwear has become the driving force for sales. Adidas has taken this into account, joining with Houston Rockets star James Harden and Barcelona Star Leonel Messi. Nike Has many great athletes under endorsement as well, the most notable of which is Michael Jordan. However, it seems that the Jordan name isn’t marketing as well now that Michael Jordan is a basketball franchise owner compared to the 90’s when Jordan was winning dunking contest and 6 NBA championships with the Chicago Bulls. However, Nike is still faring better than other footwear manufactures. Under Armour is down 40% this year despite the endorsement of the recent 2-time NBA champion Steph Curry, this is mostly attributed to style and design that didn’t capture the market’s attention.
The drop in sales of Nike and other footwear producers has affected other companies as well. Retailers like Foot Locker, Finish Line, and Dick’s Sporting Goods have suffered due to the drop in sales from athletic footwear companies. All of these retailers have seen massive drops in stock price, all down about 50% in 2017. It is clear to see that a good product isn’t all that it takes to make a profit. Effective Marketing is needed to have success in any market. So even if you have a good product, you also better know how to market it in order to secure your profits.