TL;DR: NikeSKIMS is the latest piece in a larger puzzle Nike is already solving—revitalising its brand through innovation, cultural relevance, and a renewed focus on athletes to reclaim its dominance.
In February, Nike announced a new joint venture between the brand and activewear giant SKIMS that promises to “disrupt the global fitness and activewear industry”.
For SKIMS the partnership should catapult the brand into the sports sector. And for Nike, it represents a chance to shake up its growing women’s business via SKIMS’ knowledge of the sector.
That excited investors. Strong sentiment for the new partnership kicked Nike’s stock up 6% overnight, with some commentators calling it the Swoosh’s ‘YEEZY’ moment. Unlike Adidas, where Kanye’s partnership once made up 10% of revenue, Nike’s recovery plan was already in motion before SKIMS. For the last five months, Nike CEO, Elliot Hill, has focused on long-term growth, rebuilding its partner network key and product innovation.
The results are showing...
Anticipated Footwear Releases: Nike sneaker drops are getting attention again. The updated Air Max Dn8, low-profile Superfly, and bulky Air Max Muse are hot right now, while upcoming collaborations with Bode and Travis Scott have restored sneakerheads interest in the Swoosh.
High-Profile Endorsements: Nike is re-prioritising its sports and cultural partnerships. The signing of Caitlin Clark for a landmark $28 million deal in April has made her a focal point of Nike’s marketing, with high-profile billboards in major cities, while GRAMMY-winning artist Tyla has become a key cultural ambassador for the brand.
New Focus on Brand Marketing: Nike’s returning to its advertising heydays. Its first Super Bowl halftime ad in 27 years, an extended 90-second spot dubbed ‘So Win’ highlighted female athletes like A’ja Wilson, Caitlin Clark and Sha’Carri Richardson with a voiceover by rapper of the moment Doechii. It worked. Nike stock surged and it achieved 13,000 online mentions, making it the most talked about ad of the night.
Re-Established Product-Centricity: Nike is reclaiming its crown for product quality. The new partnership with SKIMS - a company globally renowned for the quality of its shapewear - as well the successful release of new performance products like the Pegasus Premium 41 running shoe have helped to shift a negative product perception.
"For SKIMS the partnership promises to catapult the brand into the sports sector. For Nike? A chance to shake up its neglected women’s business through SKIMS’ brand equity, technology, and consumer insights."
With its stock price up 4.8% YTD, the tides could be turning for Nike. But to reclaim the highs of Q4 2021, they’ll need to continue to focus on the core factors that originally set the brand apart:
Innovation: Technological advancement has slowed at Nike. Like Apple who continue to cling onto the success of the iPhone, Nike’s success lies in finding its next AirMax or Flyknit moment to stay ahead of competitors like On and Hoka.
Cultural Speed: Nike used to lead the cultural conversation, not follow it. To get back to the top, the Swoosh should invest in key regional teams, city-based energy teams and key cultural partnerships that create irrational desire around its products.
Athlete Focus: The bulk of the problems at Nike can be traced back to letting its eye off the ball when it comes to its core focus since the start—the athlete. To solidify a resurgence, it needs to put performance, storytelling, and endorsement deals around the best athletes in the world at the core of its strategy.
While the internet gossips about its SKIMS partnership, Nike was already working on far loftier goals. Can it get back to the top? We’ll wait and see.