kidmercury

I should note that Nike is a terrible company. I prefer to avoid their products. Check the video below.


I also recommend the book No Logo by Naomi Klein, which I am currently reading. Fantastic book for marketers, and it has some Nike hate in there too.

But with all that said, Nike is marketing genius. Here's the basic Nike business model:

1. Connect independent suppliers, distributors, etc. Focusing on this helps Nike specialize and do this as inexpensively as possible.
2. Tack the logo on.
3. Sell!

In No Logo, Klein explains how Nike is really in the business of selling transcendence -- not selling shoes or clothing, but rather selling the idea of being a superhuman, of transcending your limitations.

I think the Nike strategy is going to play itself out online with new media publishers -- i.e. "blog stars." As media becomes free, it becomes the vehicle by which brands are created. Now, the challenge is to create teh system that can weave together the suppliers/distributors to create a merchandise line, and focus on creating the brand to slap on. This is a big part of the future of music, which is why I focus on it -- when we see music become the ad for the musician's brand, we'll know the future of music is here.