09-07-2018, 10:03 PM
https://www.marketwatch.com/story/nikes-online-sales-jumped-31-after-company-unveiled-kaepernick-campaign-2018-09-07?link=sfmw_tw
Quote:Nike’s online sales jumped 31% after company unveiled Kaepernick campaign, data show 219
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Fears of a hit appear overblown as consumers, brand experts and analysts cheer an edgy and risky marketing move
Photo by Slaven Vlasic/Getty Images for Sports Illustrated
Talk of Nike Inc. sales taking a hit from the company’s decision [url=https://www.marketwatch.com/story/nike-takes-politics-head-on-by-naming-colin-kaepernick-the-face-of-30th-anniversary-of-just-do-it-2018-09-04]to put ex–NFL player Colin Kaepernick at the center of its latest “Just Do It” campaign is looking overblown, based on data from a Silicon Valley digital commerce research company.
After an initial dip immediately after the news broke, Nike’s NKE, -0.12% online sales actually grew 31% from the Sunday of Labor Day weekend through Tuesday, as compared with a 17% gain recorded for the same period of 2017, according to San Francisco–based Edison Trends.
“There was speculation that the Nike/Kaepernick campaign would lead to a drop in sales, but our data over the last week does not support that theory,” said Hetal Pandya, co-founder of Edison Trends.
Nike’s stock has also held up after its initial slump. The stock was up 1% on Friday and remains in the black for the month. It has gained 29% in 2018, while the Dow Jones Industrial Average DJIA, -0.31% , which since 2013 has counted Nike as a member, has gained 5%, as the S&P 500 index SPX, -0.22% has risen about 8%.
The news generated plenty of online buzz, with social engagement around Nike and Kaepernick rising sharply this week, according to 4C Insights, a marketing technology company. Mentions of and comments about Nike on social-media platforms rose 1,678% on Sunday and Monday, according to 4C data. Mentions of Kaepernick spiked 362,280%, the data showed.
The athlete has become the face of player protests against racial injustice and police brutality, since he started sitting and later kneeling during the national anthem, inspiring others to follow suit. The action has irked President Donald Trump, who weighed in on the Nike campaign in a series of tweets this week.
See also: Muhammad Ali, Rosa Parks ... Colin Kaepernick? Super Bowl champ says those raging against Nike will regret it
That didn’t deter Nike from airing its first TV ad of the campaign on Thursday. Narrated by Kaepernick, the ad includes appearances by other high-profile African-American athletes Odell Beckham Jr., LeBron James and Serena Williams. The ad urged people to follow their dreams and ignore naysayers.
“Calling a dream crazy is not an insult,” Kaepernick says in the Nike spot. “It’s a compliment.”
To be sure, Nike has taken some flak from customers who oppose the NFL player’s actions. Sentiment toward the brand dropped 38% on Sunday and Monday, according to 4C, but it’s not all bad news.
Read also: Nike’s Kaepernick ad to provide a long-term gain after some near-term pain, analyst says
Related: The obvious reason why burning Nikes is so ridiculous, explained by Trevor Noah
Nike’s most engaged audience persona is “Made it and Know it,” said 4C Chief Marketing Officer Aaron Goldman, one of 70 categories of consumers that 4C has identified by analyzing social-media engagement on a range of platforms. People in that bracket are generally successful in their careers and personal lives, are typically single with robust social lives, and like to spend money on entertainment and travel, as well as online streaming services.
“Racial equality is a top concern for this audience, along with causes like clean-water access and gun control,” Goldman said.
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