With superstar Michael Jordan's sales appeal a fading ember, iconic sports brand Nike, Inc gambled on controversial National Football League (NFL) quarterback Colin Kaepernick to save its day and this "Hail Mary" pass seems to have worked.
Kaepernick, a former quarterback with the San Francisco 49ers, is currently unemployed. NFL team owners colluded with one another to deny Kaepernick work for his controversial form of social protest that has since divided America along racial and political lines
Nike's online sales grew 31 percent from Sept. 2 to 4 as compared with a 17 percent gain for the same period in 2017, according to Edison Trends, a Silicon Valley digital commerce research company. The firm said there was speculation the Nike/Kaepernick campaign might lead to a drop in sales, but its data over the last week does not support that theory.
Nike's stock fell somewhat on Sept. 3 when Nike broke the news about Kaepernick deal but quickly recovered. It's risen 30 percent Sept. 11. Nike's shares hit a record high of $83.90 on Sept 13. Also, a total of 15,191 investors added Nike to their portfolios last week, up 45 percent from the week before.
The Kaepernick ad campaign's biggest success, however, has been on social media. It created a huge boost in Instagram followers and Likes on Twitter and Facebook. This popularity should translate into higher sales, said one analyst.
Data shows Nike added some 170,000 Instagram followers by the second week of this month said Wedbush Securities, a privately held financial services and investment firm. based in Los Angeles. Other analysts surmise the Kaepernick ad campaign generated "possibly record Likes" on social media, despite anti-Nike comments by conservatives and right-wingers.
The success of the Kaepernick gamble has also helped Nike stage a successful turnaround, and is a sign of the company's strength, said financial services firm Canaccord Genuity. The firm said that after two years of market share declines, Nike has regained its footing and is solidly marching back to top form.
Nike nearly lost its crown as king of the sneaker market in 2017 because the company overproduced its high-scale shoes. It also made its popular Jordan shoes too easy to get and so not as elusive or cool. Nike is counting on Kaepernick to get back this cool.
Joining Kaepernick in Nike's newest Just Do it Campaigns are NBA superstar LeBron James (who famously derided Trump as a "bum" in a famous tweet) and tennis superstar Serena Williams, who came back from childbirth to reassert her place at the top of women's tennis.
In 2016, Kaepernick became famous (or infamous) when he ignited national controversy by choosing to kneel on one knee rather than stand while the United States national anthem was being played before the start of NFL games.
He said this was his way of protesting against racial injustice in the United States and police brutality. His kneeling protest has since been adopted by other NFL players and continues to this day. President Donald Trump, who has been slammed for his racist tendencies, said NFL players that kneel for the anthem should be banned for an entire season and suspended without pay.
A few months ago, Amnesty International awarded Kaepernick with the 2018 Ambassador of Conscience award.
Despite the divisiveness surrounding Kaepernick, Nike went ahead and still made him one of the faces of its "Just Do It"30th-anniversary ad campaign launched before the start of the NFL season on Sept. 6. The first image of this campaign saw the release of a close-up, black/white image of Kaepernick's face along with the caption, "Believe in something. Even if it means sacrificing everything."
Nike signed Kaepernick in 2011. It's kept him on its endorsement roster since that time despite their not featuring him in any of their ads. Making him the star of their ad campaign this season was a huge gamble, and it's paid off for Nike.
