It all started when Donahoe took over as CEO, eliminating long-established categories such as running, football, basketball, fitness, and training in favor of simplified gender-based labels and reorganizing Nike’s product division. It started when we made the controversial decision to reorganize our marketing department. “Men”, “Women”, and “Children”. This change not only alienated a core group of designers and marketers, many of whom left en masse, but also disrupted Nike’s ability to speak honestly to a particular sports community, and the company’s focus on innovation and niche marketing. weakened competitiveness.
Under Donahoe’s leadership, Nike has centralized its marketing efforts and pursued a digitally-driven strategy. The result is bold, emotional campaigns that once defined the brand, like the iconic 1997 “Failure” ad in which Michael Jordan reflected on missed shots and losses, and 2012’s “Find Your Greatness” campaign. was to be abandoned. It was a celebration of ordinary athletes who push their limits. These campaigns resonated with audiences because they addressed universal themes of human struggle and triumph.
Instead, Nike pivoted to a more clinical, algorithmic approach, which Junko called “a notorious editorial strategy.” The aim was to churn out targeted content optimized for digital platforms, but this approach backfired.
Instead of creating a compelling story, Nike flooded its social media channels with costly and ineffective content. These posts were designed to drive traffic to Nike’s e-commerce platform and did little to convert visitors into customers. Worse, they eroded Nike’s once-strong storytelling ability and left a void in its emotional connection with its audience.
Can Nike regain its cultural dominance?
Despite this situation, Nike remains one of the most famous and popular brands in the world. The company remains the market leader in its industry, earning $5 billion in profits before interest and taxes each year ($5.7 billion in 2024) without a single dollar of debt.
Just as On Running has taken advantage of its proximity to state-of-the-art manufacturing facilities in Europe, Nike could benefit by focusing on local manufacturing and innovation hubs, said Nicoline Van Enter. suggests.
“The light spray they produced was only possible because On Running is based in Switzerland and the light spray production equipment is manufactured in Germany,” she explains. The coronavirus pandemic has exposed vulnerabilities in global supply chains, with Nike’s reliance on Asian manufacturing proving to be a bottleneck.
Of course, such changes can’t be implemented quickly, and Nike knows that. “Recoveries of this magnitude take time,” Chief Financial Officer Matthew Friend said on a conference call with Nike analysts last Thursday. “In the short term, this is a marketing fix,” Van Enter agrees.
Another immediate challenge for Hill is rebuilding relationships not only with retailers but also with the athletes, influencers and creators who have helped shape Nike’s image over the past few decades.
There’s already talk of rekindling key collaborations, rethinking the partnerships that once gave Nike unparalleled street cred, and bringing back some of the design and marketing talent that left during Donahoe’s tenure. are.
“If Nike can create that emotional connection again, if they can make their products feel aspirational and exclusive and desirable rather than overproduced and commoditized, then they can take the throne.” We’ll have a real chance to get that back,” Lopes said. Whether they have the enthusiasm (and stomach) for this business remains to be seen.
