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As for the athletic footwear industry itself, it is expected to reach $114.8 billion by 2022. Athletic footwear refers to shoes that are designed for sports and other outdoor activities. The global consumption volume indicates that these are being used as casual and fashion footwear in a trend by all age groups. Athleisure, athletics and leisure combined, is establishing itself in the fashion world, making sportswear more functional and versatile. Textiles are becoming greener, and products are selling faster with their newfound functionality. Another trend is the rising awareness of one’s health. Obesity is one of the biggest health issues in countries like the U.S. and Europe, with one out of three people being obese. The population has focused on activities such as yoga, the gym, and jogging to fight obesity. The rising awareness for health is expected to increase this demand in the coming years. There are several companies in the athletic footwear industry that would qualify as a competitor of NIKE, Inc. ADIDAS is at the top of the list of competitors. The company has a worldwide revenue of $16 billion, and a brand valuation of $7 billion. ADIDAS competes with NIKE on the basis of footwear, clothing, and accessories. Another one of NIKE’s competitors is Puma. Puma is known for its athletic footwear and its apparel. The company has a revenue of $3.4 billion. A fun fact about Puma and ADIDAS is that both of the founders of each company were brothers. They had a falling out in 1948, which led to the rise of both companies. Puma does not have as high of a level of sports sponsorships like NIKE and ADIDAS, but has the 15
NIKE, INC.revenue to match. An additional competitor, albeit small and actually owned by NIKE as of 2003, is Converse shoes. The company has a worldwide revenue of $2 billion. Besides casual shoes, Converse is known for its tennis shoes and sneakers. 16
NIKE, INC.Recent Developments, Analyst Opinions, & Wall Street ConsensusAs a retailer in the fashion industry, NIKE, Inc. is constantly going under new developments. They are consistently releasing new products and buying smaller companies as affiliates, adding on to the NIKE name as their revenue and earnings grow. When NIKE is planning on releasing a new product, the company adds a photo and a “coming soon” link to the “launch” section of their website. The site includes products that have been recently released with links to purchase them, as well.Screenshot of Nike’s launch page on the company’s retail website.A growing trend for the younger generation is a love for sneakers. These sneaker lovers have come to calling themselves “sneaker heads”, and by definition, these consumers are one of the first people to purchase shoes at a launch, or find a pair of limited edition sneakers and purchase those as well. Unfortunately, brands have failed to market to every demographic, and tend to market directly towards males. Nike has taken advantage of this and has announced a new approach in designing and selling to female sneaker heads. This includes expanded, unisex