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BRAND HEAT
How brands rise and fall
THINK LIKE A MERCHANT
March 25, 2025
What’s happening with Nike? Are they not cool anymore?
My father, who is in his 70s, asked me this
He had seen on the news that the company was having a tough time
He had also noticed that his local Footlocker had a much smaller selection of Nikes than they used to have
His conclusion- if other people aren’t buying Nikes, he probably shouldn’t be buying them either
My dad has always been into clothing and while not fashionable, like many men, stays dedicated to specific styles and brands for a long time
Because of this, he’s sensitive to changes in those brands
He, like millions of other shoppers, has become a convert of brands like Hoka and On
Very simply, that’s how brands grow
And that’s also how brands decline
When a brand has good products and is worn by others
That helps build and maintain brand loyalty
When those same brands make less desirable products or are perceived to be worn by fewer people
It causes a shift in brand loyalty
If you’re following retail news, Nike reported a sales decline of 9% over the last 9 months
This is on top of treading water for the previous two years
It’s a big shift for America’s largest footwear maker
No doubt my father is not Nike’s brand target
He is in the halo, the outer orbit of brand followers
If he notices that Nike may no longer be cool, the target consumer has likely long-since left the brand
This isn’t just about Nike but a reminder of how brands can quickly rise and fall based on popularity
A brand’s best advocates are its customers
A handful of bad decisions can turn those advocates into detractors
They talk a lot about brand heat in Beaverton
Right now, Hoka and On have it
Nike doesn’t
Can they get it back?
They can, but it will more of a marathon than a sprint
It ain’t the heat, it’s the humility
CHAD’S ROUND-UP
📚 What I read: The Everything Store by Brad Stone- This story of the rise and exponential growth of Amazon provides a window into how this company became a part of our everyday lives. Jeff Bezos’ secret sauce was his vision, drive, and ability to recruit talent to help make Amazon the world’s biggest retailer. From the beginning, Bezos’ belief that Amazon should be customer-centric, long-term oriented, and biased towards invention helped differentiate the company from other retailers. Re-reading this was a master class in brand positioning and relentless execution.
🎧 What I heard: Now and Then by The Beatles- I don’t really talk about music around here, but had to share this. I recently heard a song that sounded like John Lennon but I hadn’t heard before. It turns out that this was a newly released single built off a long-lost demo that Lennon recorded in the 1970s. Through the use of AI to replicate Lennon’s voice and the support of Paul McCartney and Ringo Star, this new song was released and won a Grammy! I was/am impressed and it’s clear that AI has the potential to be used in ways that can entertain us as well as enhance our work.
🕵🏻‍♂️ An interesting discovery: Thermomix- a friend showed me this machine which makes restaurant-quality meals in minutes. Apparently, like Robbie Williams, they are big in Europe. With an app that contains thousands of recipes, this machine guides you through each one, all the while chopping, blending, steaming, and roasting your meal. It’s magical.
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