Nike Pulls Ahead with Multibrand Strategy
What's the big news about Nike? The stock is up and the company has new "pep in its step," according to a recent Barron's report.
What's behind the good news? William Peres came in last year as chief executive officer, replacing founder Phil Knight, and brought with him his experience in selling many different consumer brands through multiple channels. The robust growth is coming from the non-Nike brands, including Starter, Converse, Hurley International and Cole Haan.
Increases in the Asian market, along with core products like Air Jordans continue to fuel the shoemaker's long-term profit growth of 15%. Nike already has a 33% market share of the athletic sneaker market and is now experiencing 20% growth in its "other brands."
The new strategy takes Nike down trails it's never been before, including selling lesser brands at mass discount chains. For example, Green Bay Packer quarterback Brett Favre recently signed on to endorse $37.00 Starter sneakers at Wal-Mart Stores.
Distribution strategies continue to separate the smaller companies from the brands on steroids, and Nike's latest moves are just another example of how the fleet of foot can make significant market moves faster.
Talk to you soon,
Kae Groshong Wagner
CEO, Founder — North Star Marketing
Award-winning Author, Speaker
Brand Consultant
CEO Advisor for Sales & Marketing
