We all know the general story behind the Jordan Brand’s rise. But here’s a quick refresher on the details. Michael Jordan signed with Nike after being taken No. 3 overall in the 1984 draft. Nike received a lot of criticism for giving a 5 year – $2.5 million (plus royalties) endorsement deal to an unproven rookie. Jordan responded with a successful rookie campaign that included winning Rookie of the Year, becoming an All-Star, and leading the Chicago Bulls to a payoff berth.
From then, the Jordan brand blossomed. The following year, Jordan debuted his signature shoes. The shoes were later outlawed by then NBA commissioner David Stern for not having white in them. Jordan refused to abide by Stern’s ruling, resulting in Nike coughing up $5000 every time he wore them. Nike jumped on this and used it as a marketing tool to say that Jordan’s shoe gave him an unfair advantage. Whether consumers believed it or not it was one of the last marketing campaigns Nike needed for the Jordan brand. This type of marketing success would prove to be difficult to repeat as other Nike products have required extensive traditional and new age advertising via digital marketing avenues.
The Jordan brand has taken a life of its own. More than 10 years after Michael Jordan’s [final] official retirement and almost 30 years after its initial release the Jordan brand no longer needs external marketing tactics. Surprisingly, the brand does not stand alone. It is a daughter company under Nike. The Jordan brand is undoubtedly the most successful brand under Nike with a reputation and profitability unseen by other Nike products, brands, or services. The brand relies on loyalty and history, rather than social media and digital marketing, in attracting consumers.
Similar Nike products, such as the Lebron, Kobe, and KD sneakers, do not have the same success as the Jordan brand. Although associated with high-caliber players the aforementioned sneakers have yet to greatly affect the American culture the same way Jordans have. In comparison, Lebron, Kobe, and KD sneakers have only scratched the surface. A common theme seen by these shoes is that they are available in a variety of options in order to have a greater appeal to a larger group of consumers. The high amount of options could result in the Paradox of Choice, which states that too many options can result in consumers being overwhelmed and decrease sales. In contrast, retro Jordan sneaker swere usually only available in some form of black, red, and white to represent the Chicago Bulls.
The lack of popularity with other major basketball footwear as compared to Jordans may be a result of the following:
- Player activity (the shoes could be seen as collectables once the players retire)
- Frequency of shoe deals (Nike alone has 278 players under a major shoe contract now)
- Longevity and brand loyalty (consumers have spent decades with Jordans)
Even though, the Jordan sneaker doesn’t produce commercials as frequently as others their lack of public exposure does not hurt their reputation and profitability.
According to Matt Powell of SportsOneSource, the Jordan brand made Nike $2.25 billion in 2013, or $250 million more than it made the year before. This level of growth is a result of creating a relationship between popular, well-known athletes including: Chris Paul, Russell Westbrook, and Carmelo Anthony, and the brand.
A pair of newly released Air Jordans can retail from $149 to $249 with no guarantee that supply will meet deman. It becomes even more costly when purchasing from a collector as prices could be as much as $1000 online. The shoes usually sellout within a few hours either in-store or online though several footwear vendors. The lack of availability has resulted in consumers camping outside of stores for hours or days before the release of new sneakers. Also, mass hysteria has appeared as consumers have resulted to violence more often than not.
So what is it about a pair of shoes that causes people to make irrational financial decisions?
For starters, the Jordan Brand is a representation of Michael Jordan and his illustrious career. It is also an extended representation of a higher social life and status symbol. Throughout all ages, genders, and professions people are purchasing Jordans as a fashion statement and for social credibility. The high-quality of the material makes them durable while maintaining style. Since a majority of the shoes debuted during the 80’s and 90’s they add an old-school or retro sense. There is also a desire to purchase Jordans for collective purposes for bragging rights.
There are currently 28 versions of the Jordan shoe, with a 29th version to debut in September 2014.
Shawn Jones is a published writer/journalist who has been featured on SportTechie and Yahoo Contributor Network! Add him on LinkedIn and refer to his blog.