Business Design
Discover how Nike makes money through its business model. Learn about Nike's revenue streams, DTC strategy, and what makes the brand profitable.
Nike's dominance in athletic footwear and apparel isn't just about clever marketing and celebrity endorsements. The nike business model represents one of the most sophisticated and profitable retail strategies in modern business, generating over $51 billion in annual revenue. Understanding how Nike makes money requires examining its shift from traditional wholesale distribution to an increasingly digital, direct-to-consumer approach that prioritizes higher margins and deeper customer relationships.
The company has transformed itself from a product manufacturer into a technology-driven lifestyle brand that leverages data analytics, membership programs, and vertical integration to capture more value at every step of the customer journey. This strategic evolution has positioned Nike not just as an athletic company, but as a consumer platform that monetizes brand loyalty through multiple channels.
Nike's journey from a small Oregon-based shoe distributor to the world's largest athletic apparel company demonstrates the power of brand-building and strategic innovation. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman, the company rebranded as Nike in 1971 and has since grown into a $200+ billion market cap enterprise.
Today, Nike operates in over 170 countries and employs approximately 79,000 people worldwide. The company's brand value exceeds $33 billion, making it the most valuable apparel brand globally. Nike's success stems from its ability to blend product innovation with emotional storytelling, creating not just athletic gear but cultural symbols that command premium pricing.
The company's geographic diversification provides resilience against regional economic fluctuations. North America remains Nike's largest market, generating approximately 40% of total revenue, followed by Europe, Middle East and Africa at 27%, Greater China at 19%, and Asia Pacific and Latin America at 14%. This global footprint allows Nike to capitalize on growth opportunities across different economic cycles and consumer segments.
Nike's portfolio extends beyond the Nike brand itself. The company owns Converse, acquired in 2003 for $305 million, which contributes roughly $2 billion annually. The Jordan Brand, while technically part of Nike, operates with significant autonomy and generates over $5 billion in annual revenue, representing one of the most successful athlete brand partnerships in history.
The nike business model operates as a premium brand platform that combines product design, marketing, and distribution to capture maximum value from athletic and lifestyle consumers. Nike's business model canvas reveals a sophisticated ecosystem built on several interconnected components.
Nike's value proposition centers on performance innovation combined with aspirational branding. The company invests heavily in research and development, spending over $1 billion annually to create products that offer genuine athletic advantages while simultaneously serving as fashion statements. This dual appeal allows Nike to charge premium prices across both performance and lifestyle categories.
The customer segments Nike serves are intentionally broad yet strategically targeted. Professional and amateur athletes form the core performance segment, while lifestyle consumers who value Nike's brand image represent an increasingly important revenue source. Nike has also developed specific product lines for different sports, age groups, and gender identities, allowing for precise market segmentation and targeted marketing campaigns.
Nike's key resources include its intellectual property portfolio with thousands of patents, its global brand reputation, its extensive consumer data collected through digital platforms, and its relationships with athletes and influencers. The company has also built proprietary manufacturing technologies and design capabilities that competitors struggle to replicate.
Revenue streams flow through both wholesale partnerships and direct-to-consumer channels, including retail stores, e-commerce platforms, and mobile applications. This omnichannel approach allows Nike to meet customers wherever they prefer to shop while strategically pushing consumers toward higher-margin direct channels.
Nike's revenue architecture consists of several distinct but interconnected streams that together generated $51.2 billion in fiscal year 2023. Understanding the composition and performance of these streams reveals how the company balances growth with profitability.
Footwear represents Nike's largest category, contributing approximately $29.3 billion or 57% of total revenue in fiscal 2023. This segment includes running shoes, basketball sneakers, training footwear, and lifestyle shoes. The Jordan Brand alone accounts for a significant portion of footwear revenue, with certain limited-release models selling for thousands of dollars on secondary markets, demonstrating the brand's pricing power.
Apparel generates roughly $14.4 billion annually, representing 28% of revenue. This category encompasses athletic wear, sportswear, and lifestyle clothing across multiple sports and activities. Nike's apparel business benefits from higher repeat purchase rates compared to footwear, as consumers replace clothing more frequently than shoes.
Equipment and other contributes approximately $2.4 billion or 5% of revenue. This category includes sports equipment, accessories, and licensing arrangements. While smaller than footwear and apparel, equipment often serves as an entry point for younger consumers and reinforces Nike's presence across the entire athletic experience.
Converse operates as a distinct segment, generating around $2.4 billion annually. The subsidiary maintains its own brand identity and distribution channels while benefiting from Nike's infrastructure and resources. Converse targets a different demographic than core Nike products, focusing on casual lifestyle consumers rather than performance athletes.
Geographic revenue distribution shows North America at $20.4 billion, EMEA at $13.8 billion, Greater China at $7.2 billion, and APLA at $6.6 billion. The company's ability to generate substantial revenue across diverse markets provides stability and multiple growth pathways as different regions develop at different rates.
Nike's most significant strategic transformation over the past decade involves its aggressive push into direct-to-consumer sales, which now represent approximately 42% of total revenue compared to just 16% in 2010. This shift fundamentally changes Nike's economics, increasing gross margins while providing valuable customer data and stronger brand control.
Nike's DTC revenue reached approximately $21.3 billion in fiscal 2023, growing at a faster rate than wholesale channels. The company operates over 1,150 Nike-branded retail stores globally, including flagship locations in major cities that serve as brand showcases and community gathering spaces. These stores typically achieve higher sales per square foot than wholesale partners, ranging from $600-800 annually compared to department store averages of $200-300.
Digital commerce represents the fastest-growing component of DTC sales, reaching over $10 billion annually. Nike's apps and website allow the company to test new products, gather consumer feedback in real-time, and adjust inventory and pricing dynamically. The Nike app ecosystem, including Nike Training Club, Nike Run Club, and SNKRS, has accumulated over 160 million members who engage with the brand beyond transactions.
The SNKRS app deserves special attention as an innovation in product launches and customer engagement. By gamifying limited-release drops and creating scarcity-driven demand, Nike generates extraordinary engagement metrics and sells exclusive products at full price with minimal marketing costs. Some SNKRS releases sell out in seconds, with winners selected through drawings that can attract hundreds of thousands of entries.
Nike's membership program integrates across digital and physical touchpoints, offering exclusive access to products, personalized recommendations, and content. Members spend roughly 3 times more than non-members annually and show significantly higher lifetime values. This membership data allows Nike to reduce reliance on third-party retail analytics and build direct relationships with end consumers.
The DTC strategy also enables Nike to control its brand presentation and reduce markdown rates. While wholesale partners frequently discount Nike products to drive traffic, Nike's own channels maintain stricter pricing discipline, protecting brand perception and margins. The company's gross margin on DTC sales approaches 70% compared to 40-45% on wholesale orders.
Despite the DTC push, wholesale relationships remain critical to Nike's business model, generating approximately $29.9 billion or 58% of total revenue in fiscal 2023. Nike's wholesale strategy has evolved from broad distribution to selective partnerships with retailers who align with the brand's premium positioning.
Nike works with several categories of wholesale partners. Sporting goods specialty stores like Dick's Sporting Goods and Foot Locker receive priority access to Nike products and often create Nike-branded shop-in-shop experiences. These partners understand athletic consumers and provide credible product expertise that complements Nike's brand image.
Department stores and off-price retailers represent a more complicated relationship. Nike has systematically reduced its presence in traditional department stores like Macy's, viewing these channels as brand-dilutive and margin-eroding. The company prefers partners who position Nike products premium and invest in appropriate brand presentation.
E-commerce marketplaces present both opportunity and challenge. Nike maintains relationships with Amazon and Zalando but carefully controls which products appear on these platforms. The company uses marketplace partnerships to reach convenience-driven consumers while protecting its direct channels by withholding new releases and exclusive products.
Nike's wholesale agreements increasingly include data-sharing provisions that provide visibility into sell-through rates and consumer behavior. This information helps Nike optimize production and distribution while also identifying when partners aren't effectively representing the brand. Underperforming accounts face reduced allocation or termination.
The company has cut ties with numerous wholesale accounts over the past five years, eliminating over 50% of its North American retail partnerships. This rationalization improves brand control and pushes consumers toward higher-margin channels. Former wholesale customers often transition to Nike's own stores and digital platforms, effectively converting lower-margin sales to higher-margin transactions.
Wholesale partnerships also serve strategic purposes beyond immediate revenue. Entry into new geographic markets often requires local retail relationships to build brand awareness before Nike invests in dedicated infrastructure. Wholesale also provides scale during peak seasons when Nike's owned stores cannot meet demand.
Nike's product strategy balances breadth and focus, offering products across numerous sports and activities while maintaining concentrated investment in key categories that drive brand perception and financial performance.
Running remains foundational to Nike's identity and generates over $8 billion annually across footwear and apparel. The company's innovation in running shoes, including technologies like ZoomX foam and Vaporfly carbon plates, maintains Nike's position as a performance leader. Elite athlete endorsements and marathon dominance create halo effects that influence recreational runners and casual consumers.
Basketball represents Nike's most culturally influential category, generating approximately $5 billion annually. Nike's NBA partnerships, signature athlete shoes, and Jordan Brand dominance create a self-reinforcing cycle where basketball credibility drives lifestyle sales. Basketball shoes frequently cross over to fashion contexts, selling to consumers who never play the sport.
Training and fitness generates roughly $4 billion as consumers increasingly blur lines between workout wear and everyday clothing. Nike's investment in women's training products has proven particularly successful, tapping into growing female participation in fitness activities and athleisure adoption.
Soccer (football) delivers over $3 billion in revenue globally, with particularly strong performance in European and Latin American markets. Nike sponsors numerous national teams, clubs, and individual players, maintaining visibility in the world's most popular sport. Soccer products often drive international expansion as Nike enters new countries.
Lifestyle and sportswear may represent Nike's fastest-growing segment, though the company doesn't break out these sales separately. Products like Air Force 1s, Air Max models, and basic apparel generate substantial revenue from consumers who value Nike's brand image more than performance features. These products typically carry higher margins due to lower technical requirements and stronger brand-driven demand.
The Jordan Brand deserves special mention as a business unit that generates over $5 billion annually while maintaining distinct brand identity. Jordan products command premium pricing, with retro basketball shoes regularly selling for $200-250. The brand's cultural cache extends beyond sports into music, fashion, and lifestyle contexts.
Product innovation occurs through dedicated facilities like the Nike Sports Research Lab, where scientists study athlete biomechanics and material properties. Nike files hundreds of patents annually, protecting innovations that provide temporary competitive advantages. Technologies eventually diffuse to competitors, requiring continuous innovation to maintain performance leadership.
Nike's transformation into a technology company represents a critical component of its business model evolution. The company invests over $1 billion annually in digital capabilities, viewing technology as fundamental to customer engagement and operational efficiency.
Nike's app ecosystem forms the core of its digital strategy. The Nike app serves as a central shopping and content platform with over 100 million members. Nike Training Club and Nike Run Club provide free workout content and tracking, generating engagement beyond transactions. These apps collect valuable data on user preferences, activity patterns, and product performance.
The SNKRS app revolutionized product launches by creating artificial scarcity and gaming-style experiences around limited releases. This approach generates free media coverage, drives app downloads, and sells products at full price to highly engaged consumers. The app's success has influenced broader retail trends toward mobile-first shopping and experiential commerce.
Nike's acquisition of analytics companies CELECT and Datalogue enhanced its capability to predict demand, optimize inventory, and personalize recommendations. Machine learning algorithms analyze millions of data points to forecast which products will sell in which locations, reducing excess inventory and markdown needs.
The Nike Fit app uses augmented reality and computer vision to scan feet and recommend proper shoe sizes, addressing a major friction point in online footwear sales. This technology reduces return rates while improving customer satisfaction and encouraging digital purchases.
Nike's digital infrastructure extends to its supply chain and manufacturing operations. The company uses 3D design tools to accelerate product development and employs advanced analytics to optimize production scheduling and logistics. Digital twins of products allow testing and refinement before physical samples are produced.
Manufacturing innovations like Flyknit technology demonstrate how digital capabilities enable product differentiation. Flyknit uses computer-controlled knitting machines to create shoe uppers from single pieces of yarn, reducing waste and enabling customization. This technology requires sophisticated software to translate designs into machine instructions.
Nike's investment in owned and operated digital platforms reduces dependence on third-party channels that extract fees and control customer relationships. While Nike sells through Amazon and other marketplaces, the company prioritizes driving consumers to Nike-controlled channels where margins and data access are superior.
Nike's manufacturing approach differs fundamentally from traditional apparel companies. Nike owns zero factories, instead partnering with approximately 500 independent contract manufacturers across 40 countries. This asset-light model allows flexibility and capital efficiency while introducing complexity and risk.
The company's largest manufacturing partners include Pou Chen Group, Tae Kwang, and Qing Dao, which collectively produce over 60% of Nike products. These long-term relationships provide stability and enable joint investment in new production technologies. Nike places large, predictable orders that give contract manufacturers visibility and allow them to achieve scale efficiencies.
Vietnam has emerged as Nike's largest manufacturing base, producing approximately 50% of footwear. China manufactures roughly 25%, with Indonesia, Thailand, and other Asian countries comprising the remainder. This geographic diversification provides resilience against country-specific disruptions while allowing Nike to optimize for labor costs, logistics, and trade policies.
Nike maintains over 700 employees in its manufacturing quality and compliance organization, monitoring working conditions and product quality across contract factories. The company publishes factory lists and audit results, responding to historical criticism about labor practices. These investments in oversight represent costs that smaller competitors often cannot afford.
Lead times from design to retail typically span 6-9 months for footwear and 3-6 months for apparel. Nike continuously works to reduce these timelines through digital design tools, improved supplier coordination, and production techniques that allow later finalization of product details. Faster cycles enable better demand matching and reduce obsolescence risk.
The company operates multiple distribution centers globally, including major facilities in Memphis, Tennessee and Laakdal, Belgium. These logistics hubs employ advanced automation and robotics to process millions of units daily. Nike ships products to over 100,000 retail locations worldwide, requiring sophisticated routing and inventory management systems.
Sustainability initiatives increasingly influence manufacturing decisions. Nike's Move to Zero program aims for zero carbon and zero waste, driving investments in renewable energy, recycled materials, and circular product designs. The company reports that over 50% of Nike brand products now incorporate some recycled content, addressing environmental concerns while often reducing material costs.
Nike's marketing excellence represents a core competitive advantage that justifies premium pricing and drives consumer preference. The company spends approximately $4 billion annually on demand creation, representing roughly 8% of revenue compared to industry averages of 5-6%.
Athlete endorsements form the foundation of Nike's marketing strategy. The company maintains relationships with over 1,000 professional athletes across numerous sports, including multi-hundred-million-dollar lifetime deals with figures like LeBron James and Cristiano Ronaldo. These partnerships provide authentic performance credibility that resonates with serious athletes and aspirational consumers.
Nike's marketing campaigns consistently rank among the most memorable and effective in advertising. "Just Do It" remains one of history's most recognized taglines three decades after its introduction. Recent campaigns around social issues, including Colin Kaepernick's "Dream Crazy" ad, generate massive earned media while reinforcing Nike's positioning as a culturally relevant brand willing to take stands.
Sponsorships of teams, leagues, and events provide visibility and brand association. Nike holds partnerships with the NBA, NFL, and numerous soccer leagues and national teams. These deals cost hundreds of millions annually but deliver exposure to billions of consumers and reinforce Nike's position as the default choice for elite competition.
Digital and social media marketing allow more targeted and measurable campaigns. Nike maintains robust presences across Instagram, YouTube, TikTok, and other platforms, often generating higher engagement rates than competitors despite comparable follower counts. User-generated content and influencer partnerships extend Nike's reach beyond paid media.
Retail experiences contribute to brand building through flagship stores designed as destinations rather than simple transaction points. The Nike NYC House of Innovation spans six stories and features customization services, basketball courts, and localized product selections. These stores lose money operationally but generate brand value and content creation opportunities that justify the investment.
Community building through running clubs, training programs, and local events creates emotional connections beyond products. Nike Run Club organizes thousands of free group runs globally, positioning Nike not as a company but as a supporter of athletic pursuits. These programs build loyalty that translates to long-term purchasing behavior.
Nike's dominant market position stems from multiple mutually reinforcing competitive advantages that competitors struggle to replicate. Understanding these advantages explains Nike's ability to maintain premium pricing and market share despite intense competition.
Brand equity represents Nike's most valuable asset, estimated at over $33 billion. This brand value allows Nike to charge 20-30% premiums over comparable products from competitors. Consumers consistently rate Nike as their preferred athletic brand across numerous countries and demographic segments. Brand strength also provides resilience during product missteps or competitive attacks.
Scale advantages create cost benefits and market power. Nike's $51 billion revenue base allows spreading fixed costs across enormous unit volumes, reducing per-unit costs for everything from R&D to advertising. Large purchase volumes give Nike negotiating leverage with manufacturers and suppliers. Retail partners prioritize Nike because the brand drives traffic and sales.
Innovation capabilities supported by over $1 billion in annual R&D spending enable Nike to introduce performance benefits that competitors take years to match. Technologies like Air cushioning, Flyknit construction, and React foam have provided temporary monopolies that allow premium pricing and market share gains. Even after patents expire, Nike's innovation reputation influences purchase decisions.
Network effects emerge from Nike's digital ecosystem and membership programs. As more consumers join Nike apps and share activity data, the platforms become more valuable through better recommendations and social features. Athletes wearing Nike products create aspirational associations that attract more consumers, creating viral growth loops.
Distribution advantages from Nike's combination of owned stores, premium wholesale partnerships, and digital platforms provide multiple ways to reach consumers while maintaining brand control. Competitors with weaker distribution must accept less favorable terms from retailers or invest heavily in building direct channels.
Nike's market share leadership varies by category and geography but consistently ranks first or second globally. In athletic footwear, Nike holds approximately 27% global market share, more than double Adidas at 11%. In North American athletic footwear, Nike's share approaches 40%. This leadership position creates self-fulfilling expectations among consumers, retailers, and investors.
Nike's financial results demonstrate the economic power of its business model. Analyzing key metrics reveals how the company converts brand strength and operational excellence into shareholder value.
| Fiscal Year | Revenue | Gross Margin | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2023 | $51.2B | 43.5% | $5.7B | $5.1B | $3.23 |
| 2022 | $46.7B | 45.9% | $6.7B | $6.0B | $3.75 |
| 2021 | $44.5B | 45.6% | $5.9B | $5.7B | $3.56 |
| 2020 | $37.4B | 43.4% | $4.8B | $2.5B | $1.60 |
Revenue growth has averaged approximately 7-8% annually over the past decade, with acceleration during the pandemic as consumers embraced athletic and casual footwear. The company targets high single-digit revenue growth over the long term, balanced between volume increases and pricing power.
Gross margins in the 43-46% range reflect Nike's premium pricing power offset by input cost inflation and product mix shifts. DTC growth should expand margins over time, as direct sales carry gross margins 20-25 percentage points higher than wholesale. The company targets gross margin expansion of 100-150 basis points over the next several years.
Operating margins around 12-14% position Nike well above industry averages of 8-10%. Higher margins enable greater investment in innovation, marketing, and digital capabilities that further strengthen competitive position. Operating leverage should improve as revenue grows faster than fixed costs.
Return on invested capital (ROIC) consistently exceeds 30%, demonstrating exceptional capital efficiency. Nike's asset-light manufacturing model and strong cash generation allow high returns despite significant investments in inventory and receivables. ROIC well above Nike's cost of capital creates shareholder value.
Cash flow generation provides flexibility for capital allocation. Nike generates $5-6 billion in annual operating cash flow, supporting approximately $2 billion in capital expenditures, $1.5 billion in dividends, and $5-8 billion in share repurchases. This balanced approach returns cash to shareholders while funding growth investments.
Nike's balance sheet carries approximately $10 billion in debt, providing financial flexibility while maintaining an investment-grade credit rating. Low interest rates in recent years made debt attractive for funding buybacks rather than using cash. The company maintains $10-11 billion in cash and investments, ensuring liquidity.
Inventory management represents an ongoing challenge, with inventory balances fluctuating between 120-160 days of sales. Nike's shift toward more direct sales requires holding more inventory while seasonal and promotional timing affects quarter-to-quarter levels. Excess inventory occasionally forces markdowns that pressure margins.
Despite its strong position, Nike faces several significant challenges that could impact future performance. Understanding these risks provides context for evaluating the sustainability of Nike's business model.
Market saturation in developed markets limits organic growth opportunities. North American and European consumers already own multiple pairs of Nike products, requiring Nike to drive replacement cycles or expand usage occasions rather than simply adding new customers. Growth increasingly depends on taking share from competitors or expanding into new categories.
Chinese market volatility creates uncertainty given Greater China's importance at nearly 20% of revenue. Geopolitical tensions, nationalist consumer sentiment, and local competitor strength all threaten Nike's growth trajectory in this critical market. Nike has experienced temporary boycotts related to statements about supply chain practices in Xinjiang.
Competition intensification from both traditional rivals like Adidas and emerging brands like On Running and Hoka puts pressure on market share. Smaller brands often move faster and create cultural buzz that attracts younger consumers. Nike must balance defending core categories while expanding into new spaces where it lacks heritage.
Digital transition costs require significant ongoing investment while cannibalizing higher-margin wholesale relationships. Building and maintaining digital platforms, apps, and infrastructure costs hundreds of millions annually. Nike must execute this transition while managing wholesale partner relationships and avoiding channel conflict.
Sustainability pressures from consumers, investors, and regulators require fundamental changes to product design, manufacturing, and logistics. Meeting climate commitments while maintaining margins and performance standards presents technical and economic challenges. Some sustainable materials currently cost more or perform worse than conventional alternatives.
Labor and human rights scrutiny continues following decades of criticism about factory working conditions. Nike must maintain vigilant oversight of hundreds of contract manufacturers while responding to evolving stakeholder expectations. Any serious violation could damage brand reputation and trigger consumer boycotts or regulatory penalties.
Economic sensitivity affects consumer spending on discretionary products like athletic footwear and apparel. Recessions or economic slowdowns typically reduce Nike sales as consumers delay purchases or trade down to cheaper alternatives. Currency fluctuations also impact reported results and competitive positioning in international markets.
Growth opportunities exist despite these challenges. International markets, particularly in Asia Pacific and Latin America, offer significant runway as incomes rise and sports participation increases. Women's products represent an underdeveloped segment where Nike holds lower share than men's categories. Digital channels should continue taking share from traditional retail, playing to Nike's strengths.
Product innovation continues opening new markets and price points. Performance running shoes now sell for $250-300, creating premium tiers that didn't exist a decade ago. Sustainability-focused products could command premiums while appealing to environmentally conscious consumers. Customization and personalization offer differentiation that justifies higher prices.
Nike's strategic priorities for the next 3-5 years emphasize accelerating digital growth, expanding women's and international revenue, investing in sustainability, and maintaining innovation leadership. The company targets revenue of $60-65 billion by fiscal 2027, requiring compound annual growth around 6-7%. Achieving these targets while expanding margins and returns will determine whether Nike maintains its position as the industry's most valuable and profitable brand.
What is Nike's primary source of revenue?
Footwear represents Nike's largest revenue source, generating approximately $29.3 billion or 57% of total revenue in fiscal 2023. Within footwear, running and basketball categories drive the highest sales, though lifestyle shoes represent an increasingly important contributor. Nike's footwear dominance reflects both performance innovation and cultural relevance.
How much money does Nike make per year?
Nike generated $51.2 billion in revenue during fiscal year 2023, with net income of $5.1 billion. The company's revenue has grown from $37.4 billion in fiscal 2020, representing compound annual growth of approximately 11% during this period. Nike's annual revenue makes it larger than most athletic apparel competitors combined.
What percentage of Nike's revenue comes from direct-to-consumer sales?
Direct-to-consumer sales, including Nike-owned retail stores and digital platforms, represented approximately 42% of Nike's revenue in fiscal 2023, up from roughly 35% in fiscal 2020. This percentage continues increasing as Nike invests in owned stores and digital capabilities while rationalizing wholesale partnerships. The company targets DTC reaching 50%+ of revenue over the next several years.
Does Nike manufacture its own products or outsource production?
Nike outsources 100% of its manufacturing to approximately 500 independent contract factories across 40 countries, primarily in Asia. The company owns no manufacturing facilities, instead maintaining long-term relationships with specialized manufacturers. This asset-light approach provides flexibility and capital efficiency while requiring sophisticated quality control and compliance oversight.
How does Nike's business model differ from Adidas and other competitors?
Nike's business model emphasizes greater brand investment, faster digital adoption, and more aggressive direct-to-consumer growth compared to Adidas and other competitors. Nike spends approximately 8% of revenue on marketing versus 6% for Adidas, and Nike's DTC penetration at 42% exceeds Adidas at roughly 35%. Nike also maintains stronger premium positioning, with average selling prices 15-20% higher than Adidas across comparable products.
