This messaging shift was necessary. “Nike’s historic advantage has narrowed,” says Ellie Thorpe, director at Kantar’s BrandZ, noting that its point of difference in the US, Germany and Japan has eroded. “Brands that lose this often maintain demand for a while, because people still know and trust them. The danger comes later, when consumers start seeing competitors as being more innovative, more exciting, or more culturally relevant.” For Thorpe, renewing this proposition of difference doesn’t necessarily mean more athletes, but more compelling athletes stories instead, where the players have influence and creative input — not just a standard sponsorship.
Whether this works will depend on its agility and willingness of brands to adapt to a market that’s completely changed in the past decade.
Courting talent
Some experts argue that Nike will never return to what it once was. “Other brands are being far more aggressive in their marketing and recruitment efforts,” says Neil Saunders, managing director of Globaldata’s retail division. “On top of that, athletes like the innovation at brands such as On, and have embraced [that] in a way that they didn’t previously. Nike, while still huge, has lost some of its cool factor, which has pushed athletes into the arms of other brands.”
Athletes have become more discerning over their partners. Federer left Nike in 2018 after 24 years with the brand, stepping on board with Uniqlo, and then On, where he inked a partnership comprising a reported 3% stake in the company that would almost triple in value. This was a milestone moment, cementing a shift within the brand-athlete ecosystem. Now, sports stars grow with the brands.
As well as financial return on investment, sports stars want to see their own personal brands develop concurrently. Given that Nike’s portfolio of athletes is so large, this can make it harder for represented athletes to stand out. “With some stars they want to feel like they are the top pick as opposed to being a part of a roster of elite sports stars,” says Reece Crisp, buying and creative director at concept store LN-CC, which stocks and works with Nike on partnerships. “With the emergence of new brands, they can attract big stars by offering them the keys to the brand.” In essence, disruptor brands give athletes only-child treatment, which is enticing in a crowded market.
