Michael Jordan's brand is making one big mistake
During a recent conference call with Jefferies analyst Randy Konik, Josh Luber, the CEO of sneaker resale platform StockX, laid out the issues facing the Jordan Brand and how it could try and combat the problems going forward.To get more news about cheap jordans, you can visit cheapjordanshoesfreeshipping official website.
According to Luber, as of January 2015, Jordan Brand made up 96% of the shoe resale market and Adidas was down to around 1%. Nowadays, said Luber, Adidas has 45% market share.To get more news about cheap jordan shoes, you can visit cheapjordanshoesfreeshipping official website.
"So, in two and half years, [Adidas] basically went from nonexistent or 1 percent call it, to about 45 percent of the resell market in terms of dollars," Luber said. "And all of that share comes right from Nike and Jordan, because there's nowhere else really for it to come from, and mainly from Jordan Brand."To get more news about cheap air jordan, you can visit cheapjordanshoesfreeshipping official website.
Luber said that the second issue, oversupply, was the one that really mattered. Jordan Brand has maintained a relatively lofty reputation since its introduction due to its limited supply. By eroding this Brand value, the long-term negative for Nike could be substantial.
Additionally, by maintaining a higher reputation this prevents the shoes from being subject to other factors like the style issue.
In the end, the solution, according to Luber, is to rebuild the Jordan mystique by limiting the supply once again. The only problem is that may have other adverse effects on Nike's overall business.And it's (double-edged sword) right because I don’t know what it would do to revenues or earnings to start really cutting back on supply of Jordans, and how do you get that elsewhere," Luber said.
"But long term and for the Brand, for protecting the Jordan Brand, that's definitely what I think they should be doing."
