November 10, 2024

Nike’s Plan to Win Over Teens Is Working

Nike #Nike

Nike is making a lasting impression with younger consumers.

That’s according to the 5,690 teens across 47 U.S. states who responded to Piper Sandler’s 45th semi-annual survey this spring. According to the results, Nike earned the top spots for footwear and apparel in the survey that ranked teen’s favorite brands and websites. Nike also earned the top spots for footwear and apparel preferences in Piper Sandler’s fall survey.

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In apparel, Nike garnered 33% of the vote, followed by American Eagle at 7%, and Lululemon at 6%. These were followed by H&M (4%) and Shein (3%). Nike’s share of the vote was larger in footwear at 61%. Converse came next with 10% of the vote, followed by Adidas (6%), Vans (5%) and New Balance (2%).

Within footwear, Ugg broke into the top 10 favorite footwear brands, ranking 7th overall and 5th across female teens, reflecting the brand’s recent push to win over Gen Z. Crocs ranked as the sixth favorite footwear brand, down from its number five slot in the fall. The Crocs-owned Hey Dude brand was number eight. On, the fast growing Swiss running brand, and the Deckers-owned Hoka earned the 12th and 19th slot for favorite footwear brands, respectively.

The win for Nike comes as the Swoosh invests more heavily into winning over younger consumers, especially in China. In the company’s most recent earnings call, CEO John Donahoe called out targeted releases like the Year of the Rabbit pack focused on Gen Z and Gen Alpha consumers.

“That’s really resonating with that constituency, and we’re really focused on those younger consumers in China,” Donahoe said.

He also called out the launch of the kids-specific model of The Tatum 1 sneaker, which he said “represents an evolution for the Jordan Brand, shifting from serving an individual athlete to also serving the next generation to come as well.”

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“The potential here to bring innovation into our kids business is vast as we build lifelong relationships with younger generations,” Donahoe added.

Foot Locker also outlined in its recent investor day a plan to win over the “next generation of sneakerheads” together with Nike.

“Similar to developing the next generation in basketball, developing the next generation of sneakerheads is critical to Foot Locker and Nike’s long-term growth,” said Foot Locker chief merchandising officer Chris Santaella in a call with analysts last month.

Nike also grew to the number two spot for teens’ top shopping websites. Amazon took the top spot, with 57% of teens choosing it as their top choice. Nike was second, tied with Shein, at 6%, followed by Lululemon at 3%. The survey also found that teen spending was up 2% year over year, with men leading the growth with an increase of 6% year over year.

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