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AIR INC., PART II: THE BUSINESS SIDE OF THE JORDAN BRAND

          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).

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