Global sports fashion industry is estimated to reach by $184 billion by 2020. Sportswear designs mainly for providing more ease in bodily movement. The industry is witness of immense growth in promoting fitness plans in various sports like, swimming, running and many more. North America is the largest profit making county of sports fashion section by 2014. This industry has many key players including, Nike, Umbro, Fila, Lululemon Athletica, Columbia company. The industry adopts various strategies for capturing large market share and increasing customers.
North America is the market leader in this industry. On the other hand, Asia pacific countries are expected to grow in higher rate in coming years.
Factors affecting the industry
The disposable income is showing continuous trend which resulted into attracting the target customers in buying qualitative sportswear. The overall disposable income in India augmented approximately $1500 billion in 2013. Although, the annual per capita income in China jumped up from $2818 in 2010 to $4692 in 2014 (According to the National Bureau of Statistics of China).
Fitness conscious customers
Because of work related stress and improvement in lifestyle customers became more health orientated. Nowadays working people more focused on their health and fitness in their daily routine life. This creates the demand of sportswear and sports related accessories in all age groups.
The demand of trendy sportswear is increasing which leads the companies to launch new products to meet the existence demand. New technologies help to look after heart rate, breath depth, level of stress and calories. These products will help to attract new customers.
The sports fashion market has good potential growth but on the other side, there are many forged and low-priced products which become bottle neck in growth of the market. (Global Opportunity Analysis and Industry Forecast, 2014-2020.)
The sports fashion industry is having more than 20,000 retail stores throughout North America comprising independent retailers also connected with more than 100 countries. It has also contracted with online markets. Industry works in the sportswear and accessories market. In sports fashion industry, there is tough competition, price-conscious customers and changing trends in fashion trends are factors which make the growth slower in the industry. The industry is also shifting towards online market platform to sell their products. (Jitesh navlani, 2012, May 09)
Nike was founded in 8 September, 1969 is currently engaging in designing, developing, marketing and selling sports footwear, apparel, equipment, services and accessories. The segment of target is North America, Europe, Japan, China, India and many developing markets. Company is operation under different sub-brands like, Jordan, Nike, Hurley, Converse etc. Company has its own retail stores and also sells through online market.
The Company offers its product in nine different sections like, running shoes, sports lifestyle products for different sports like golf, basketball etc. some products also design for children. The company engaging in sale of bags, caps, socks, eyewear, watches etc. ( Nike Inc., Company Profile)
Nike manufactures very high qualitative products like, sportswear, accessories. Nike designs one new shoes on every day. The key success factor of Nike is they are sustain the quality standard in each of their products, very close relations with customers, maintaining loyalty among customers and high customary product. The products are for male, female and children in every age-group. Company has approximately 300 models in shoes in more than 900 different designs for 25 different sports. Nike is very successful in making collaboration to other brands inside the sport industry.
Nike was founded by Phil Knight and Bill Bower man. Nike bought many companies in their years of success and also sold many of them like. Umbro. Nike gives sponsorship in many sports events and also sportsperson. Nike provide employment to above 40000 personnel and the value of the brand is approx. $10 billion. (Nike, Inc. Success Story.)
Strategic focus & plan of Nike
Mission of the company
“To bring inspiration and innovation to every athlete in the world.”
If you have a body, you are an athlete.
“The Nike goal is to carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability to reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.” (Strategic Marketing Plan of Nike, 2016)
Company has widely spread market all over the world.
With income of $3.27 billion and revenue around $30.6 billion in 2015.
The creation of income worth $12 billion in 2015. (Nike News, 2010)
Nike has strong name in the running sports market in American as well as European market.
Wholesale market of Nokia is continuously being constant and key factor for idyllic development for retail collaborators which are higher than 80% of the business by 2015.
Nike is preparing to create business in Europe, China and other developing countries which emphasis on lesser double-figure growth with more $3 to 3.5 billion by 2015. (Peters, 2009.)
Nike estimated to make upsurge its price of the product that can be impact positively and rise in profit from products. (Shahriar, 2015.)
Nike also plans to set up approx. $500 million dollars in next years that will standardize business operations and increase effectiveness in wholesale and retail market. (Nike Inc., 2016)
Long-term financial goals of Nike
Increase profit by 10% per annum
Increase Earning per share every year
Increment in dividends to 25 to 35%
Increment 25% of Return on capitalized capital
Core competency of company
Area of marketing
Nike have vast differentiation in terms of marketing strategies. Nike focus on brand awareness among their customers since long time. They also have positioned their brand very well in the market. Nike has top seat which on any of its competitor cannot change in simply. The slogan “Just Do It” and symbol “?” very well popular among their target customers. The campaigns which focuses on health and fitness based on achievement targeted goal and sportsmanship was very advantageous to gain positive impact on young customers.
Economies of scale
Constant upgrading the technology helps them to maintain effectiveness in production.
Nike has good collaboration with companies like Apple who makes the most competitive advantage because, by using the Apple iPod devices customers can record the pace, time and distance.
The robust copyrights and patents are the key strength of the company which makes their product more valued and non-replicable.
The supply chain management competences helps to gain one more competitive advantage which makes the outsourcing effective by gaining lower cost of production.
Key success aspects of Nike
It facilities distinctive value by providing their own designed customized products.
They know the demand of athletes and young people very well.
Products of Nike exists everywhere across the world.
The designs, logo are very unique and eye-catching.
Online shopping is available.
They have good collaboration with other companies who also engage in same industry.(Strategic marketing, Dr. Rizwan Raheem Ahmed, 2016)
Global Opportunity Analysis and Industry Forecast, 2014 – 2020. Retrieved from https://www.alliedmarketresearch.com/sports-apparel-market
Jitesh navlani Follow. (2012, May 09). Nike industry analysis presentation. Retrieved from https://www.slideshare.net/jiteshnavlani/nike-industry-analysis-presentation
Nike Inc. (NKE) Company Profile. Retrieved from https://www.reuters.com/finance/stocks/company-profile/NK
Nike, Inc. Success Story. Retrieved from https://successstory.com/companies/nike-inc
Ahmed, Rizwan & Brohi, Hina & Hussain Bhutto, Arslan & Prithiani, Joti & Khubchandani, Rabel & Kumar, Sumit & Abbas, Zaheer. (2016). Strategic Marketing Plan of Nike.