The multi-million dollar endorsement battle between the top three sports shoe companies – Nike, Adidas and Reebok – has reached a pivotal point. This spring, they’ll vie for consumer attention with a variety of new commercial pitches.
While all three companies sell shoes and apparel for a wide variety of sports, the main attraction is basketball. Basketball shoes and related apparel is by far the largest revenue-generating niche, and the main marketing tool for basketball shoes is the personal product endorsement of NBA players.
Nike is the largest of the three companies, with about $10 billion in annual revenue. Adidas is next with about $7 billion, with Reebok trailing at around $4 billion.
When Michael Jordan retires after this season, supposedly for good this time, his appeal as a high-profile Nike pitchman will be reduced. However, high school basketball superstar LeBron James is entering the endorsement market, and NBA star Kobe Bryant is also an endorsement free agent (his contract with Adidas recently expired).
Reebok currently employs such big names as NBA players Allen Iverson, Steve Francis, Jason Richardson, Baron Davis, and tennis player Venus Williams. Reebok is especially counting on its association with Allen Iverson and Steve Francis to appeal to younger kids and the “street ball” culture.
Reebok spends most of its advertising dollars promoting Iverson and his most recent brand name shoes “The Answer 6,” which will retail for about $130. In addition, Reebok has also signed a contract with the NBA to outfit as many as 19 teams with Reebok uniforms. In women’s shoes, Venus Williams is Reebok’s main high profile endorser; her line of “DMX” women’s tennis shoes retail for $100.
Tim Duncan, Antawn Jamison and Tracy McGrady are all under contract with Adidas. However, it appears that Adidas is putting most of its marketing dollars into the promotion of the new Tracy McGrady line of “T-MAC2” basketball shoes, which will retail for $100. The recent loss of Kobe Bryant as an Adidas endorser has hurt new product development as all new designs for Bryant’s line of shoes had to be scrapped.
Anna Kournikova and Martina Hingis are the highest profile names in the women’s market and are featured in ads for the company’s tennis shoes and apparel.
Nike currently has about 50 NBA players, including Michael Jordan, Jason Kidd, Dirk Nowitzki, Rasheed Wallace and Scottie Pippen, endorsing its shoes. It also appears that Kobe Bryant will be joining the family soon. Probably the biggest prize, LeBron James, is rumored to be leaning toward signing with Nike as well.
The newest shoe being introduced by Nike is the AirFundamental for $75. Other newer shoes from Nike are the AirJordan XVIII, which retails for $175; the AirZoom UltraFlight, at $125; the AirFlight, priced at $85; and the AirMax, retailing for $140.
In the women’s shoe market, Gabrielle Reece is currently being used to market golf shoes and apparel, while Sheryl Swoopes is marketing basketball shoes. The popularity of Michael Jordan seems to transcend gender – Nike has recently introduced an Air Jordan women’s line of shoes.