Nike’s main source of equity in the sportswear industry is brand recognition. People associate the company with innovation, style, athletic performance, and inspiration. Nike invites non-traditional yet famous athletes to cater to the target consumers who are bold, determinant, and creative. Thus, the enterprise manages to capitalize on such associations and attract new customers quite easily. Despite that, the industry of sports apparel, shoes, and equipment is not a monopoly.
There are hundreds of established and emerging brands, which compete for the same consumers. Although Nike is a globally recognized sportswear giant, no exceptions apply to it in terms of dealing with competitors. The company’s main rivals are Adidas and Under Armour, according to Danziger. Each of these brands have their own associations, marketing strategies, and loyal customers, which means that all of them are a threat to Nike’s dominance in the industry.
Nike is, in fact, the biggest player in selling athletic shoes, sportswear, and merchandise. It maintains the largest share of the market in the North American region. On the Forbes 2019 World’s Most Valuable Brand list, the company ranks fourteenth, while Adidas is at no. 61. It is also important to note that Nike is the first “in consumers’ perception of innovation and fashion/style and most importantly on purchase intention, according to a survey among 1,400+ recent athletic apparel purchasers in the U.S.”. Consumers and their purchasing decisions determine the success of a business venture, which is why the fact that Nike ranks no. 1 is so crucial to recognize.
In addition, the company leads in terms of innovation since 39% of female customers and 42% of male customers find it the most innovative. In comparison, Adidas and Under Armour do not rank anywhere near Nike, which is concerning. When it comes to fashion, almost 40% of women consider Nike the most fashionable brand, with Adidas being favored by approximately 19%. It is evident that despite the current challenges faced by Nike, it remains the industry’s leader in terms of brand recognition, customer preferences, style, and much more.
