Overview of Nike as a Brand
Nike is ranked the #1 sports brand and is best known for athletic apparel and footwear. The company positions its products through brand image, innovation, and athlete endorsements. Nike’s ‘luxury’ brand is Jordan, with an average sneaker price of $139.
Distribution Strategy of Nike
Nike may take a luxury distribution path, focusing on direct-to-consumer strategies and carefully selected retail partners. The company aims to control supply and increase revenue by severing ties with certain stores and adopting a high-end distribution approach.
Why Nike is Not Classified as a Luxury Brand
While Nike is known for premium and innovative products, it is not a luxury brand but a premier athletic footwear brand. The brand offers products at various price points, catering to both performance and fashion needs. Nike’s emphasis on enhancing performance and quality justifies its pricing.
Challenges Faced by Nike and Market Positioning
Despite facing challenges like COVID-19’s impact, Nike maintains a strong online presence and collaborates with luxury brands occasionally. The brand’s focus on innovation, performance, and comfort testing by athletes differentiates it in the market.