Nike is a global sporting company that has acquired and created a strong portfolio of brands. In addition to Nike, their flagship brand, Nike also owns several subsidiary companies. These include Converse, the popular shoe brand known for its classic Chuck Taylor All Stars, which was acquired by Nike in 2003. Nike also acquired Hurley, a leading surf apparel brand, in 2002. And of course, the iconic Air Jordan brand, created in 1984 in collaboration with basketball legend Michael Jordan, is another subsidiary under the Nike umbrella. Nike has strategically built a diverse brand portfolio, leveraging its resources and core competencies to drive growth and profitability.
Key Takeaways:
- Nike owns several subsidiary companies including Converse, Hurley, and the Air Jordan brand.
- Converse is known for its classic Chuck Taylor All Stars and was acquired by Nike in 2003.
- Hurley is a leading surf apparel brand that Nike acquired in 2002.
- The Air Jordan brand, created in 1984 in collaboration with Michael Jordan, is also a subsidiary under the Nike umbrella.
- Nike strategically builds a diverse brand portfolio to drive growth and profitability.
Nike’s Brand Acquisitions and Sales
Nike, the global sporting company, has a history of strategic brand acquisitions and sales, shaping its diverse business portfolio. Let’s take a closer look at some of Nike’s notable brand acquisitions, as well as the companies it has sold.
Brand Acquisitions
Nike has made several significant brand acquisitions throughout its history. In 1988, Nike acquired Cole Haan, a luxury shoe, handbag, and accessories brand. This acquisition allowed Nike to expand its presence in the premium fashion market. However, in 2012, Nike decided to sell Cole Haan to focus on its core athletic brands.
In 1995, Nike acquired Bauer Hockey, a leading manufacturer of hockey equipment. This acquisition aimed to strengthen Nike’s position in the hockey market. However, Nike sold Bauer Hockey in 2008 to focus on its core athletic categories.
Nike also acquired Starter, an iconic sports brand, in 2004. The acquisition allowed Nike to tap into the urban and activewear markets. However, Nike sold Starter in 2007 to further streamline its brand portfolio.
Brand Sales
In addition to acquisitions, Nike has also divested certain brands to pursue its strategic objectives. In 2012, Nike sold Umbro, a football/soccer brand, to focus on its core athletic brands. This sale allowed Nike to narrow its focus and allocate resources more effectively.
It’s worth noting that Nike’s brand acquisitions and sales have been driven by a desire to create a strong and focused brand portfolio. Through these strategic moves, Nike has been able to leverage its resources and expertise in the sporting goods industry.
| Year | Acquisition | Sale |
|---|---|---|
| 1988 | Cole Haan | 2012 |
| 1995 | Bauer Hockey | 2008 |
| 2004 | Starter | 2007 |
| 2007 | Umbro | 2012 |
The Dominance of Nike in the Sporting Goods Industry
Nike’s market dominance in the sporting goods industry is undeniable. The company has continuously solidified its position as the leader, showcasing impressive financial figures that reflect its unparalleled success. In 2019, Nike recorded a remarkable revenue of $39.2 billion, surpassing its closest competitor Adidas by a significant margin. Adidas, in comparison, reported a revenue of $25.7 billion for the same period. This substantial revenue gap demonstrates Nike’s ability to capture a larger share of the market.
Furthermore, Nike’s brand value in 2019 stood at $36.8 billion, reinforcing its position as the top sports brand globally. This value far exceeds that of other well-known sports brands, solidifying Nike’s status as the go-to choice for consumers seeking quality athletic products. The company’s ability to consistently deliver innovative and trend-setting products has contributed significantly to its brand value and overall dominance in the industry.
One of the key indicators of Nike’s dominance is its market capitalization, which currently stands at an impressive $160 billion as of June 2020. This makes Nike the most valuable sporting goods company worldwide, further underscoring its market leadership. The company’s ability to maintain such a high market capitalization demonstrates the trust and confidence investors have in Nike’s business strategy, brand strength, and long-term growth potential.
| Financial Metric | Nike | Adidas |
|---|---|---|
| Revenue (2019) | $39.2 billion | $25.7 billion |
| Brand Value (2019) | $36.8 billion | N/A |
| Market Capitalization (June 2020) | $160 billion | N/A |
These figures, both in terms of revenue and brand value, emphasize Nike’s enviable market position. The company’s dominance in the sporting goods industry is a result of its unwavering commitment to innovation, exceptional product quality, and effective marketing strategies. Nike’s ability to continuously meet the demands of athletes and consumers alike has established it as the leading force in the global sports market.
Nike’s Wholly-Owned Subsidiaries
In addition to Converse, Hurley, and the Air Jordan brand, Nike owns several wholly-owned subsidiaries that further enhance its brand portfolio. These subsidiaries are an integral part of Nike’s strategic approach to diversify and cater to different consumer segments.
One of Nike’s wholly-owned subsidiaries is Nike Golf, which specializes in producing high-quality golf apparel and equipment. With a focus on innovation and performance, Nike Golf offers a wide range of products designed specifically for golf enthusiasts, including clubs, apparel, shoes, and accessories.
Another prominent subsidiary under Nike’s ownership is Umbro. Known for its rich heritage and expertise in football/soccer, Umbro stands as a leading brand in the sport. It offers a comprehensive range of football-related products, including apparel, footwear, and equipment, catering to players and fans alike.
Furthermore, Cole Haan, a luxury footwear and accessories brand, is also a part of Nike’s portfolio. With its timeless designs and commitment to craftsmanship, Cole Haan targets consumers looking for premium and fashionable footwear options.
FAQ
What companies does Nike own?
Nike owns several subsidiary companies, including Converse, Hurley, and the Air Jordan brand. They also own Nike Golf, Umbro, and Cole Haan.
How did Nike acquire these brands?
Nike acquired Converse in 2003, Hurley in 2002, and the Air Jordan brand in 1984 through a collaboration with Michael Jordan. Nike also made acquisitions of Cole Haan in 1988, Starter in 2004, and Umbro in 2007.
Has Nike ever sold any of these brands?
Yes, Nike sold Cole Haan in 2012, Bauer Hockey in 2008, Starter in 2007, and Umbro in 2012. However, Nike continues to own and operate Converse, Hurley, the Air Jordan brand, Nike Golf, and other subsidiary brands.
What is the financial performance of Nike?
In 2019, Nike had a revenue of $39.2 billion, surpassing its closest competitor Adidas. Nike’s brand value in 2019 was $36.8 billion, and its market capitalization as of June 2020 was $160 billion.
How does Nike ensure growth and profitability across its subsidiary brands?
Nike leverages its resources and core competencies to strategically build and manage a diverse brand portfolio. Each subsidiary brand, such as Converse, Hurley, and Nike Golf, targets specific consumer segments and adds value to Nike’s overall business portfolio.
What are Nike’s wholly-owned subsidiaries?
In addition to Converse, Hurley, and the Air Jordan brand, Nike wholly-owns Nike Golf, Umbro, and Cole Haan. These brands enhance Nike’s brand portfolio and contribute to its overall success in the industry.