10 Things You Need to Know About the Jordan Brand’s Success & Growth
It’s hard to walk down the street without seeing the everlasting impact of Michael Jordan’s legacy. From little kids to teenagers to dads people can’t get enough of the iconic Jordan Brand sneakers and apparel. Jordans are so popular we take for granted just how difficult it is for a shoe and apparel brand to stay in the collective zeitgeist for nearly 40 years. Look at the Gap it has struggled to pass the tests of time yet the Jordan Brand is growing quickly at a time when people are spending less on clothing and more on things like technology, think iPhones and data plans.
If you are curious about the Jordan Brand, its history and where it’s going then consider these 10 facts about the sneaker and apparel brand that has helped Nike to stand out from the rest.
1. In 2016 Mike Parker, former CEO of Nike, pledged to make the Jordan Brand a $4.5 billion brand by 2022. Last year that goal game to fruition a year early when sales of the Jordan brand were up 31% to reach $4.7 billion.
2. One of the key growth opportunities for the Jordan Brand is its women’s business which was up 170% last year. “Women have been underserved in sneaker culture, and we believe we have a unique opportunity to put her first, to design products uniquely for her, to tell stories that are interesting to her, to build partnerships that makes sense for her and the way she views her place within this culture,” said Craig Williams, President of the Jordan. “Women represents one of the biggest growth opportunities out there.” Another growth opportunity is apparel which is up 50% since Nike’s 2020 fiscal year.
3. The popularity of Michael Jordan means that the Jordan brand doesn’t have to stick with its basketball roots. The Jordan Brand is also gaining popularity in other sports like golf. “Basketball will always be center court for us,” said Williams. “But the ideals of the brand, the aspirations, have moved beyond basketball into adjacent sports. And obviously, it’s very relevant in culture. We live in the world of sport, you’ve seen us on the football field, you’ve seen us on the pitch in Europe. But we’re also relevant in just about every facet of a consumer’s life right now.”
4. Nike has made a move over the last several years to grow its direct-to-consumer business. In light of this strategy The Jordan Brand is testing more standalone Jordan stores to “address gaps in distribution to serve the growth opportunities we see in Jordan,” said Williams. “We will begin testing a Jordan-only concept in North America in fiscal year 2023, leveraging a popular consumer experience that has been wildly successful in Greater China, the Philippines, and Korea. Our approach is to first pilot these concepts, iterate and perfect, and then move to scale.”
5. To entice Michael Jordan to sign with Nike, in 1984 Nike offered him a deal that included a line of shoes and merchandise, the first of its kind at the time for the footwear retailer. Nike was desperate to keep Jordan from signing with Adidas which was dominant at the time. The deal paid Jordan $500,000 a year for five years. At the time Nike hoped the deal would bring in $3 million but by the end of the first year the deal netted Nike a whopping $126 million.
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6. While the Air Jordan 1s are a fan favourite, “the AJ11 ‘Cool Grey’ launch on Snkrs was the largest for a single style in the history of Nike Direct,” says Williams. “We drove this unprecedented demand by engaging with consumers in new ways, leveraging Snapchat’s ‘Try On’ lens, a hashtag ‘InMyJs’ Instagram activation and a Fortnite partnership with custom skins and a digital scavenger hunt.”
7. Last year the Jordan Brand was the most popular brand on resale platform StockX. “The popularity of Air Jordans can largely be tied to the exclusivity level. Virtually every Jordan release is limited edition, meaning there is never enough to satisfy the market demand,” said Jesse Einhorn, senior economist at StockX. Jordans typically sell for 54% above the average retail price.
8. The market for performance basketball shoes peaked in 2015 and is now in decline. But the lifestyle category of shoes, which the Jordan brand maintains 96% control of, continues to be popular.
9. Air Jordan’s know how to hold value. A pair of Air Jordan 1s worn by Michael Jordan during an exhibition game in Italy in 1985 sold for $615,000 in 2020.
10. Over the history of his deal with Nike, Michael Jordan has made more than $1 billion.