Recognized mainly for its footwear, clothes, and equipment, Nike was founded in 1964 by Bill Bowerman and Phil Knight. The company was formerly known as Blue Ribbon Sports, Inc. (1964–1971) before it was rebranded to the Nike we know today.
Since its inception, Nike has gone on to become one of the world’s most recognizable brands. It is said that it has a total of US$46.71 billion in 2022, making it one of the brands that continuously rake in high revenues.
Thus, Nike is often associated with luxury because of its high-end products, well-known collaborations, and premium pricing. For instance, its Air Jordan sneakers can cost up to $400, while its limited edition items can go for as much as over a million dollars.
With all of this in mind, it’s no wonder that people often ask: Is Nike a luxury brand? Let’s dwell on the topic to find the answer.
Is Nike A Luxury Brand?
While not many have known the news yet, Nike’s status as a brand has already elevated to a luxury brand recently in 2022. This is all thanks to its trending products that are becoming harder to find due to the demand, limited pieces, and high price tags. Let’s explore how Nike has made this possible.
1. The Brand’s History
Nike has always been an athletic apparel company first and foremost. It is considered the largest sports apparel brand in the world. Furthermore, it wasn’t until the early 2000s when they started to focus on style over function. This is evident in their products such as the Air Max and Roshe Run which are now popular among celebrities and fashionistas.
Also, Nike is probably the top brand one person could think of when discussing sports, mainly basketball or NBA. They have been the official outfitter of the NBA since 2017 and have a current deal that will last until 2029. This is one way how they’ve gained popularity and relevance throughout the years.
2. The Brand’s Reputation
Nike has always been a popular brand, but it wasn’t until recently that it started to be seen as a luxury brand. This is because of the increasing prices of their products and the difficulty in finding them. For instance, their Air Jordan sneakers can cost up to $400, while their limited edition items can go a huge amount of money. In fact, the most expensive Nike shoes that were ever sold was the Solid Gold Ovo X Air Jordan, which was said to cost $2 million.
In addition, Nike has been collaborating with high-end brands such as Louis Vuitton and Supreme. This has helped to solidify its status as a luxury brand.
3. The Brand’s Future
It is safe to say that Nike will continue to be a luxury brand in the future. This is because of the increasing popularity of their products, as well as the trend of athleisure. In addition, they are continuously expanding their stores to include more upscale locations.
For instance, there’s a 250-square-meter NBA store opened in the Philippines. It is the 29th NBA Store in the world, and each store is generally not the typical store but a big establishment that emphasizes how the company and the brand are doing. It’s clearly can be seen in NBA’s biggest store in the world which is 2,680 square meters, located in Guangzhou, China.
4. The Air Jordan Collaboration
Nike’s most popular luxury product has to be the Air Jordan shoes. They are a collaboration between Nike and Jordan Brand, which is a subsidiary of Nike. The shoes are named after and inspired by NBA legend Michael Jordan.
The first Air Jordan shoes were released in 1985 and they have been extremely popular ever since. In fact, they are one of the most successful sneakers in history. They are also among the most expensive, with some limited edition pairs costing over a thousand dollars.
Nike has released a new Air Jordan shoe every year since 1985, and they are always in high demand. This is because they are seen as collector’s items, as well as being stylish and comfortable.
5. The Price Tag
Nike’s products are not cheap, and this is one of the main reasons why it is seen as a luxury brand. And while others would say that $150 Nike shoes aren’t expensive, some of their limited edition items and collaborations can cost a lot more. For example, the Louis Vuitton x Supreme Air Max 180 shoes were released in 2020 and they cost $1500.
It’s clear that Nike is not afraid to price its products high, and this is one of the main reasons why they are seen as a luxury brand.
It is also worth mentioning that over the years, Nike’s previous shoes that it released are getting high resale value. For instance, Kanye’s Nike Air Yeezy II was up for auction with an estimated amount of $10,000 to $15,000, according to HypeBeast. If you’re still not convinced, a pair of Nike’s “Moon Shoe” sold for $437,500 at an auction in 2019, setting the world record for the most expensive sneakers ever sold.
6. The Quality
Over the years, it has been proven that Nike shoes offer more than just their looks. They are actually comfortable and last long as well. This is one of the reasons why their prices continue to increase as people are willing to pay for quality.
It is said that Nike uses polyester, rubber, EVA foam, cotton, synthetic leather, and leather to produce shoes that are of high quality. Furthermore, their shoes go through a lot of testing before they are released to the public to make sure that they meet the company’s standards.
Does Nike Hold Value?
Nike definitely holds value for many of its products, some of which have been mentioned earlier. However, it is important to remember that not all Nike products will hold their value. For example, a pair of Nike Air Max 97s that were released in 2017 can be bought for $120 today, which is less than half of its original price.
On the other hand, there are some Nike shoes that have increased in value over time. The Air Jordan 11s “Concord” from 1995 are a good example of this, as they are now worth around a couple of thousand dollars.
There’s actually no standard formula to which Nike shoes would have low or high value in the future. It all depends on the popularity of the shoe, as well as how limited the edition is. But in terms of the quality of Nike products, it is safe to say that they do hold their value pretty well.
Frequently Asked Questions
What type of brand is Nike Considered?
Nike is an athletic apparel company that is most known for its shoes. It is a public company that is headquartered in Beaverton, Oregon.
Why is Nike so popular?
Nike is popular for many reasons. They are a global company with a strong presence in the athletic apparel industry. In addition, their products are high quality and they have a wide variety of products for both men and women.