nike-brands

Nike Brands

Business / By / August 26, 2023

NIKE’s footwear empire moves along three leading brands: NIKE, Jordan, and Converse. Through wholesale distribution, Nike generated $46.7 billion in revenue (comprising Jordan and Converse), primarily from footwear. Jordan passed $5 billion in revenue in 2022, and Converse generated over $2.3 billion in the same year.

NIKE

nike-revenue-breakdown
Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand

The NIKE Brand is focused on the following:

  • Performance athletic footwear,
  • Apparel,
  • Equipment,
  • Accessories and services across Men’s, Women’s, and Kids’,
  • These are amplified with a sport-inspired lifestyle.

Jordan

jordan-business-model
Jordan follows a demand generation business model, where its iconic brand works as a propeller for the sale of its footwear and apparel, that in 2022 generated more than $5 billion in revenue for Nike or more than 10% of its total revenue.

The Jordan Brand is focused on inspiring footwear, which has become iconic for many.

Nike’s Business Model Highlights:

  • Leading Brands:
    • Nike’s empire is built around three leading brands: NIKE, Jordan, and Converse.
    • These brands contribute significantly to the company’s revenue and brand recognition.
  • Revenue Streams:
    • Nike generated $46.7 billion in revenue through wholesale distribution in 2022, which includes revenue from NIKE, Jordan, and Converse.
    • Footwear constitutes a major portion of Nike’s revenue, with over $29 billion generated in 2022.
  • Individual Brand Performance:
    • The Jordan brand surpassed $5 billion in revenue in 2022, making it a significant contributor to Nike’s overall revenue.
    • Converse generated over $2.3 billion in revenue in the same year.
  • Product Categories:
    • NIKE Brand offers a range of products including performance athletic footwear, apparel, equipment, accessories, and services across various categories (Men’s, Women’s, and Kids’).
    • The brand also embraces a sport-inspired lifestyle approach.
  • Jordan Brand Strategy:
    • The Jordan Brand operates on a demand generation business model, leveraging its iconic status to drive sales of footwear and apparel.
    • In 2022, the Jordan Brand generated over $5 billion in revenue, accounting for more than 10% of Nike’s total revenue.
  • Emphasis on Footwear:
    • Nike’s core revenue comes from the sales of footwear, underlining the brand’s strength in this category.
  • Diverse Product Offerings:
    • Nike’s product portfolio includes not only footwear and apparel but also equipment and accessories, offering a wide range of choices to consumers.
  • Sport-Inspired Lifestyle:
    • Nike extends beyond performance-oriented products, embracing a lifestyle approach that resonates with sport and fashion enthusiasts alike.
  • Wholesale Distribution:
    • Nike’s revenue is generated through wholesale distribution, indicating its widespread presence in various retail channels.

Read: Jordan Business Model.

Converse

converse-business-model
Converse is an independent brand part of Nike’s family of brands. Indeed, Converse generated $2.35 billion in revenue in 2022. And like Nike, it follows an heavy Wholesale distribution strategy, where most of its sales are made, through footwear. However, Converse also follows a direct distribution approach, selling directly via its mono-brand stores.

Read: Converse Business Model.

Related to Nike

Who Owns Nike

who-owns-nike
The Knight family owns Nike. Indeed, the top individual shareholder is Travis A. Knight, son of Philip Knight, co-founder of Nike, with a 7% stake in Class A stocks and a 2.7% stake in Class B stocks. On the other hand, the Knight family also controls the company tightly through their Trusts and an LLC called Swoosh (the Nike logo’s shape is a “swoosh”). Through individual shares, Swoosh LLC, and Travis Knight’s irrevocable trust, the Knight family controls over 97.1% of Class A and 21.4% of Class B stocks.

Nike Business Model

nike-business-model
Nike follows a wholesale strategy combined with a very strong direct distribution. The company makes money primarily from footwear. As of 2022, over 62% of revenues came from footwear and 29% from apparel. The most successful Nike brand is the Jordan Brand, which in 2022 generated $5.2 billion in revenue. Nike is the master of demand creation and generation through its influencer campaigns, where athletes become an inspiration for everyday people.

Nike Strategy

nike-strategy
Nike leverages both a wholesale and direct distribution strategy. Indeed, while still in 2022, most sales come from wholesale distribution, in reality, since 2020, Nike has been ramping up its direct distribution through its NIKE stores and e-commerce platform (SNKRS).

Nike Revenue

nike-revenue-breakdown
Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand.

Nike Financials

nike-financials
Nike generated over $47.7 billion in revenue and over $6 billion in net profits in 2022, compared to over $44.5 billion in revenue and almost $5.8 billion in 2021.

Nike Mission Statement

nike-vision-statement-mission-statement
Nike’s vision is “To bring inspiration and innovation to every athlete in the world.” At the same time, its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making a positive impact in communities where we live and work.”

Nike SWOT Analysis

nike-swot-analysis

Nike Competitors

nike-competitors

Jordan Business Model

jordan-business-model
Jordan follows a demand generation business model, where its iconic brand works as a propeller for the sale of its footwear and apparel, that in 2022 generated more than $5 billion in revenue for Nike or more than 10% of its total revenue.

Converse Business Model

converse-business-model
Converse is an independent brand part of Nike’s family of brands. Indeed, Converse generated $2.35 billion in revenue in 2022. And like Nike, it follows an heave Wholesale distribution strategy, where most of its sales are made, through footwear. However, Converse follows also a direct distribution approach where it sells directly via its monobrand stores.

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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