Brand Premium King Nike: Breaking Stereotypes, Heng Jingzhi

Among the top 500 world brands in the world brand laboratory, Nike ranked eighth, ranking first in the category of clothing and accessories. "Nike is the world's top brand in the world."
The sports brand represented by Nike not only changed the sport shoes into a fashion, but also changed the consumption of sports shoes into an economic phenomenon, which gave birth to a large number of domestic and international sports shoe resale platforms. Tiger poisoned APP was awarded DST's A round of financing in April 2019 with a valuation of US $1 billion.
In the eyes of young consumers, Nike shoes are not only a pair of sports shoes, but also a symbol of fashion, taste and even economic strength. Sports shoes can not only be worn on the feet, but also can be collected, resold and appreciated. The current catchwords are used to describe the economy of sports shoes.
Many times, Nike sells basketball shoes at the beginning of the sale, will be bought by shoemakers, and then sell more than a few times even more than tens of times the price of the official website. Consumers who want to buy the shoes of the official website can only queue up in the store when it is not bright, or draw raffle on some WeChat public numbers to get the chance to buy shoes at the original price. In the eyes of those who do not like basketball shoes, this phenomenon is very ironic. When did the original price buy shoes become a kind of luck? But "shoe dogs" enjoy this.
There are mixed opinions about the economy of fried shoes in the market, but from a commercial point of view, this is a huge recognition of a brand by the market. How did Nike become a world-class sports brand and make the world's "shoe dogs" crazy?
In order to help the home enterprises to better serve users, we launched the "focus on user value series report" in June 2019. We selected 26 excellent enterprises to take the essence of "focusing on user value" to provide some suggestions and development ideas for home enterprises.
Focusing on sixteenth articles of user value, let's take a look at Nike's "King's road".
　 Begin to display one's talent
In 1964, knight and his coach Bowerman invested $500 each to set up a sports shoe company named blue ribbon sporting goods company. In 1972, Nike was formally established. Its predecessor was the blue ribbon sports company invested by current Nike President Phil Nate and Bill Bowerman coach. Nike originated from Greek and was "victory".
Establishing foundries in low cost countries. Nike adopts the way of virtual operation, does not set up factories, and produces all the products from the foundries. On the choice of the foundries, Nike will choose the countries and regions where labor force, raw material purchase and land rent are low from the beginning of its establishment. From Japan to Korea, to China's Taiwan, to the southeast coast of China and to Vietnam and India, when the production cost of a region rises, Nike will start looking for the next lower cost country. This way allows Nike to concentrate all its energy and resources on design and product development. The virtual management method, which completely separated product production from enterprise operation, is the pioneering work of Nike, which has brought an extremely high profit margin to Nike.
The perfect leap from sports brand to "functional fashion sports brand". Bowerman, one of the founders of Nike, is a track and field coach. So at the beginning of Nike, there was a gene and mission to serve the athletes. In terms of materials, technology and technology, they focused more on serving the athletes.
Until the 80s of last century, Reebok, a sports brand, quickly seized Nike's market share with its black horse stance. Public information shows that in 1987, Reebok's sales volume was 991 million dollars, and its market share reached 30%, while Nike took 597 million dollars and 18% of its market share to stay behind. The young Reebok has made Nike realize that it is far from enough to meet the functional needs of sportsmen, and to satisfy more young people's demand for sports fashion.
Public information shows that in 1985, Nike signed a new Michael, Jordan, who just entered NBA. He made the first pair of signature shoes in the world, Air Jordan 1. With the high popularity of Jordan in the young people, Nike's Air Jordan 1 was very popular. In 1985, the sales of these shoes reached 130 million dollars, and in September second, Air Jordan 1 had already sold 2 million 300 thousand pairs. Up to now, AJ1 is still the most popular shoe in Nike sneakers.
Create air cushion shoes. In 1980s, Nike pioneered the The Nike Air Shoe, which was considered to be black technology at the time, and Nike injected air into the soles to achieve a better damping effect. The spokesman for this shoe is also the flying Jordan. Nike has tied the shock absorption function of the gas shoes with Jordan's bouncing skills, and has achieved great success.
　　 Carry the world before one
In June 28, 2019, Nike announced its 2019 semi annual financial report, which showed that Nike group's total revenue was $39 billion 117 million, an increase of 7% over the same period last year. In clothing and apparel categories, Nike has become a Super Company, in addition to product innovation, Nike's success is more conducive to its marketing means, through marketing, Nike gives the shoes far more than its own added value, and even makes the shoes become a collection. Take the world-famous AJ1 as an example to see how Nike can sell a pair of shoes at a high price.
Constantly introducing new matching colors to refresh consumers' eyeballs. AJ1, which has been released for more than 30 years, will introduce a variety of color matching or joint names every year. According to incomplete statistics, only one type of AJ1 sneakers has launched nearly 300 kinds of matching colors. Even the senior "shoe dog" may not be able to have a clear understanding of its product matrix.
The story behind each color match. Nike deeply grasped the excitement of the fans watching the game and was good at transferring their feelings to a football match on their shoes. For example, AJ1 red and black matching basketball shoes are called "prohibited wear". The reason is that in 80s of last century, NBA banned players from wearing colorful shoes. At the cost of a million dollars, Nike insisted on letting Jordan play in these shoes with red and black coloured shoes. After that, the public deeply remembered the shoes and called them "no wear".
The most famous red and white color "Chicago" price was once fired to 40 thousand yuan, because Jordan's team bulls were in Chicago, and later the fans called Jordan's shoes for the war of gods to be called "Chicago". In addition, Jordan broke the rebound when he dunks in a ball game. Later, the designer designed the black orange color matching AJ1 according to the color of Jordan's shirt, and was called "buckle rebounding". Just imagine, if you are a senior football fan, how can you resist such a pair of cool and smart sneakers?
This is the sneaker culture created by Nike. It can record the exciting historical moments by sneakers, so that those who are full of faith will always remember those moments.
"Limited + joint name" stimulates local consumption. If we say that by recording the exciting historical moment can attract fans and consumers, then through "limited + joint name" hunger marketing can attract those "local fans and pseudo fans". The joint name of Nike sneakers is still a style that has been launched. It will stimulate mass consumption by introducing new matching colors, printing logo on the sneakers and adding some accessories.
As a sports brand, thousands of sports shoes sold by Nike can be fired to thousands or even tens of thousands of yuan, still in short supply. Through continuous innovation and marketing, Nike has become the most consumer brand with brand premium.
Those who break the rules are always respectful. This is the motto of Nike founder knight.
Nike's product innovation ideas, marketing ideas, business ideas and so on are worthy of consumer brand learning. Consumption is the biggest driving force to promote China's economic growth. It has maintained rapid growth over the years. However, after many years of economic recovery after the reform and opening up, China still has no national consumption brand in a very friendly market environment. Chinese enterprises should not only reflect on their own problems, focus on user value, but also learn from these great brands worldwide.
Consumption of the core category of household, is still in a backward stage.
For a long time, the household industry is in a backward state of commercialization and capitalization, which is full of fake and shoddy, plagiarism, bad money and good money. As a matter of fact, home consumption is a kind of consumer decision that requires heavy consumer decision. It should pay more attention to quality and brand. As China's consumer market matures, the home industry will also face more stringent assessment criteria.
So, what should the home enterprises learn for Nike, a consumer product premium?
First of all, control costs should look for areas where labor, raw materials and rental costs are lower, rather than reducing product quality and Jerry building.
In the paper, "Malaysia is not the best solution" in the furniture industry in Southeast Asia, we analyzed the advantages and disadvantages of setting up factories in Southeast Asia such as Vietnam and Malaysia. Generally speaking, home furnishing enterprises have more advantages in setting up factories in Vietnam.
In recent years, home enterprises in China have produced a variety of fancy combination boxing, creating a false impression that China's home enterprises are thriving. In fact, after ripped open the packaging, they are exposed to bloody price wars. In order to maintain a good growth in the earnings report, on the one hand, enterprises are squeezing the profits of distributors more and more thinner, on the other hand, they are shoddy and Jerry built, so as to save costs.
Home enterprises can learn from Nike's practice. Under the premise of ensuring strict quality control, home enterprises can liberate their "hands" through the way of subcontracting, and devote more energy to design research and user surveys. Besides, controlling costs can be achieved through many ways, such as setting up factories in Southeast Asia and other countries, improving the efficiency of production processes, improving intelligence and reducing dependence on employees, and so on.
Secondly, a great brand must always be on the road of innovation.
Innovation is the eternal truth of the development of these great brands in the analysis of billion euro homes. When Nike's AJ1 came out, even the spokesperson Jordan couldn't resist Tucao. 30 years ago, the shoe, which was born in the curse, got $130 million in sales in the first year.
A new category and great product usually go to the glory in the curse. Enterprises should have their own clear judgement and firm belief, persist in doing difficult and correct things, and believe that good products will win.
Finally, great brands are good at telling stories, and are good at mobilizing consumer sentiment.
According to Maslow's demand theory, people's needs from low to high are physiological needs, security needs, social needs, respect needs, self actualization needs. Any ToC brand essentially solves people's needs from different angles. But if we can only solve the consumer's demand for the product itself, then this product is a weak brand in the strong sense of the ordinary sense.
Furniture products are a strong category, but most furniture brands are vulnerable brands. Taking a table as an example, consumers may think that "I need a table", but I do not think "I need a table for a brand". And Nike can make consumers think from "I need a pair of basketball shoes" to think that "I need a pair of Nike shoes", which is the power of the brand.
Home enterprises need smarter and more advanced marketing tools, instead of concentrating on leaflets and billboards at high-speed rail airports. They can tell stories to consumers through social events that conform to the keynote of enterprises, and introduce products with a certain moral and theme. They can also dig stories from their own development process and even their employees.
In short, home enterprises should be more adaptable to young people's way of thinking and use more intelligent and direct ways to mobilize the mood of consumers, rather than push the products to consumers.
　　 Conclusion: Since its establishment, Nike has brought more than just a pair of shoes to consumers. On the one hand, through marketing, Nike can enable consumers to get satisfaction and superiority after buying their products; on the other hand, through Nike brand culture, more people love basketball, love sports, and pass the attitude of "JUST DO IT" to young people.
In today's extremely satisfying material life, the consumer brand has been given more tasks and missions. Home is a brand with a very low level of consumption. It is also necessary to make a good product while doing well in the brand, and there is still a long way to go in terms of product quality, product innovation, marketing innovation and cultural values. If Nike can make consumers love basketball and love sports, home enterprises should strive to make consumers love life and love their families.