Market Analysis of Nike

Nike is a footwear and apparel American multinational company. Phil Knight and Bill Bowerman founded the sportswear company in 1964. The sportswear brand has established a network of approximately 1045 stores in various countries across the globe. Today, we’ll discuss the market analysis of Nike; it focuses on goals and objectives, market landscape in terms of size and traffic, competitors analysis, target audience demographic, customers needs and demands, and SWOT analysis.

Market Analysis of Nike

Let’s discuss the market analysis of Nike; some of the main elements and components of Nike’s market analysis are as follows;

Goals and Objectives of Nike

The goals and objectives of Nike are to establish and maintain a strong brand position in the sportswear industry by focusing on the following areas;

• Market expansion
• Environmental Sustainability
• Creativity and innovation

The focus of the sportswear brand is to develop the most advanced and technologically sophisticated apparel and footwear to promote a healthy and active lifestyle, limited injuries, and improved performance. Nike is putting a great emphasis on improving its marketing strategies, conducting research and development, and combining the brand culture with the local marketing effort to exploit market opportunities. They could be like expanding Nike’s retail business operations in China and other Asian countries.

However, the objective of Nike is to decrease the lead time through marketing strategies like direct shipping to reduce the product delivery time. It focuses on improving the order flow processes at the distribution centers to achieve efficiency and customer satisfaction levels. The sportswear brand has made a strong commitment to environmental sustainability by decreasing the plastic consumption rate and building more environmentally friendly products.

Market Landscape of Nike

According to an estimate, the market size and market capital of the sportswear brand Nike will be roundabout 123.42 billion USD by the end of 2024. The sportswear brand ranks as the world’s 132nd most valuable brand. The company has established a network of approximately 1045 retail chain sportswear stores in various countries across the globe.

However, the company has made an annual sale of roundabout 51.36 billion USD by 2024. High market and brand value would help the company handle any type of market disruption and earn the trust and confidence of the customer market.

Competitors of Nike

Some of the top competitors of Nike in the sportswear industry are as follows;

• Skechers
• Reebok
• Puma
• New Balance
• Lululemon
• Under Armour
• Fila
• ASICS
• Adidas
• Steve Madden
• Champion
• Kappa
• K-Swiss
• Li-Ning
• VF Corporation
• GymShark
• Brooks

Target Audience Demographic of Nike

The target audience demographic details of the sportswear brand Nike are as follows;

• Age: 18 to 65 years old
• Gender: men and women
• Income: higher and financially well-off
• Employment: stable income
• Education Level: Brand-conscious and fitness aware
• Social Media Activity: higher and more proactive

The demographic details of Nike show that the company’s target audience in its marketing campaigns is both men and women. They belong to various age groups and they have a great interest in health and fitness activities. However, they want to express themselves creatively by wearing sports apparel and footwear of the premium brand with unique and innovative designs and styles.

Nike Customer’s Needs and Preferences

The needs and demands of Nike’s customer market and the target audience are variable depending on the individual customer preferences and needs. Usually, the target audience and the customer market of Nike have a great interest in sports apparel, footwear, and sports accessories. They engage in health and fitness activities and they want to wear clothes and shoes that are durable and have premium quality. Needs awareness would help the company to amplify its customer market reach, network, and sales.

SWOT Analysis of Nike

Some of the main strengths of Nike are as follows;

• Strong brand awareness and brand value in the sportswear and apparel industry
• Have a very large database of loyal customers
• Strong commitment to the environmental sustainability initiative by developing sustainable material
• Collaborating with the world’s leading celebrities and influencers
• Achieving the low cost of production and manufacturing to maintain its profitability

Let’s discuss the main weaknesses of Nike are as follows;

• Poor working conditions of laborers and employees in the production facilities of Nike
• Strong control of supermarkets and retailers over the sale of Nike’s products
• Limited diversification of sports product portfolio
• Highly expensive products and goods of the sportswear brand

Some of the main available opportunities to Nike are as follows;

• Launching innovative and creative sports product designs by investing in the R&D
• Expanding its business market into new regions and countries across the globe
• Integrating with other sportswear brand for the development of unique products and goods
• Employing advanced technological tools and equipment to amplify its network

Let’s discuss the potential threats of Nike are as follows;

• Presence of counterfeit products and goods and they’re negatively impacting the company’s reputation
• Tough competition in the sportswear industry
• Currency exchange rate differences of various countries while procuring products and goods

Conclusion: Nike Market Analysis | Market Analysis of Nike

After an in-depth study of the market analysis of Nike; we have realized that Nike is the world’s leading retail chain sportswear brand. If you are learning about the Nike market analysis; then you should keep in mind the abovementioned goals and objectives, market landscape in terms of size and traffic, competitors analysis, target audience demographic, customers needs and demands, and SWOT analysis.