Industry experts said that the new Jordan brand "helps
out" Nike at a time when the $9.2B sports company "is
struggling to maintain its dominance in the industry,"
according to Beth Berselli of the WASHINGTON POST. Solomon
Bros. analyst Brett Barakett estimated that Nike's 36%
revenue growth for U.S. footwear operations in FY '97 will
"slow" to 2-3% in FY '98. But the new line "is expected to
boost" the company's 58% share in men's basketball shoes and
clothing. Barakett: "They're going to get a huge increase
out of it." Jeffrey Pollack, publisher of THE DAILY, calls
the move "a bold stroke to perpetuate the strength of
[Nike's] top marquee athlete" (WASHINGTON POST, 9/10).
Goldman Sachs analyst Margaret Mager: "They already have a
50% market share in the (basketball) shoe category. It would
be difficult to increase market share from such a high level
using the same brand" (Garcia & Sutton, N.Y. DAILY NEWS,
9/10). In Chicago, Jim Kirk: "Nike may have ... solved an
unusual business problem: what to do when your superstar
spokesman begins to overshadow your own brand. Marketing
experts said it has become too tough for Nike to support the
Air Jordan line at the same time it tried to bring up younger
players all under the Nike brand" (CHICAGO TRIBUNE, 9/10).
CNN's Lou Dobbs: "The news [was] not pumping much air,
however, into Nike's deflated stock, which rose just 3/8.
Nike's shares are off 30% from ... February highs"
("Moneyline," 9/9). Nike closed at 54 5/8 in trading of 1.83
million shares on the NYSE (BOSTON GLOBE, 9/10).
CONSUMER FRIENDLY: Jordan, on brand pricing: "We're
trying to appeal to all financial levels. A lot of parents
are telling me Air Jordans ... are a lot more expensive than
they anticipated. Now we came out with a line of shoes from
$90 all the way to $150" (Fred Kerber, N.Y. POST, 9/10).
Jordan, on its colors: "We've come out with other colors
other than just gang colors." But NEWSDAY's Greg Logan adds
that despite the "gang-color disclaimer," the "predominant
hues" modeled yesterday included "the standard street-issue
black, white and gray with just a touch of red, yellow and
green piping." Logan adds that "bowing to criticism of the
frenzy created in the past by the release" of "Air Jordan's,"
the new Jordan line will debut on a Saturday so kids don't
cut school to be first in line (NEWSDAY, 9/10).
GREED? NEWSDAY's Logan, under the header, "Michael's
Lining His Pockets," writes Jordan "described the success of
his marketing image as a function of his outgoing personality
and the way he plays basketball, and there's no question he
has earned his status. ... Still, [he] seems content to ride
the waves of cash generated by [Nike] while remaining largely
oblivious to the greed that leads to a 'low-end' sneaker
priced at $90" (NEWSDAY, 9/10).
PUH-LEZE: Ahmad Rashad, introducing Jordan and the
brand: "You all know the exciting moments he's had -- his
five NBA championships, five NBA Finals MVPs, four MVPs of
the league. All of them are very exciting, but none of them,
I don't think, are as exciting as the launch today of his new
line" (CHICAGO SUN-TIMES, 9/10).