Bidding to restore some luster to its showcase sub-brand, Nike is
cutting retail distribution of its Jordan brand footwear in half
beginning with the critical back-to-school selling season, with new ads
due in July.
Jordan brand chief Larry Miller said that while sales of the latest Air
Jordan XV sneaker have exceeded expectations, "We've been riding the
brand pretty hard for awhile, because regardless of the state of the
market, Jordan is a constant. Now we want to get back to the days when
people stood in line for the product."
Nike and every athletic shoe brand has suffered from a glut of models
and retailers. While marketers generally have cleaned up excess
inventory, the problem of too many stores persists--especially in
malls, producing a sales environment that only competes on price.
Nike also plans to expand its apparel into non-shoe accounts, such as
department stores and urban outlets. "The idea is to have a look that's
a mix of authentic athletic and style' said Miller.
Spending levels will stay consistent at $12 million, as will creative,
which casts Jordan in a more supervisory role to better showcase active
endorsers like Eddie Jones, Randy Moss and Derek Jeter.
"We will always use Michael but we cant really show him slam dunking anymore," said Miller.
