A Wren Says

If you read my previous post, you’ll know that I called out people in my circle who are convinced tha Nike has no competitors. Or that Adidas is their only real competitor. I was harsh and called them foolish, but I stand by that.

This is a quote from Phil Knight. It is taken from an interview he did, published in USA Today.

“So Under Armour is a very serious competitor, but Adidas is the next biggest and they’ve got a lot of money to spend and they have a lot of capability. We worry about them all. And it isn’t just shoes. In golf, we compete against Titleist. In women’s athletic gear, we compete against Lululemon, so we worry about them all.”

From Mr. Knight himself, you see that Nike is thinking about more than just Adidas, but they are doing it in product categories. Golf -> Titleist. Womens’ -> Lululemon. When you think about the competitors of Nike, or any other business for that matter, don’t think about it terms of the size of the competitor. Think about what it is that you are trying to well and whether or not there are other companies who are also trying to do that, too.  Let’s try and break down some more of Nike’s competitors.

Let’s focus just on shoes. Nike sells not just regular casual shoes, but shoes for multiple sports and activities. Distance running, track and field, soccer, baseball, basketball, football, golf, weightlifting, Crossfit, skateboarding, cheerleading, volleyball. And they even have aqua shoes for swimming/beachwear. And I have probably missed an activity. This means that nike has to stay on a swivel and keep in mind the approaches of brands like Bape, Hoka, Brooks, Diadora, Mizuno, Way of Wade, Under Armour, Titleist, TYR, No Bull, Vans, BCG, Asics, and Speedo. And that’s just shoes. And that is just for the United States.

The inventory that Nike carries is extensive. The number of activities and sports they cater to is large. The various target consumers is ridiculous. That means that you can’t blanketly list out their competitors without diving into what Nike provides. So yes, Nike does have competitors, and that number is a lot higher than you might think.