Nike surprise relevance fall as upstarts steal marketshare.

I see Nike losing market share because brands like On have interlaced themselves into local running clubs like the one in Venice Beach. On has taken a unique approach by renting a separate house next to their store in Venice, creating a dedicated space for runners to hang out with their friends. This creates a strong sense of community and loyalty among local runners.

According to a report by NPD Group, On Running saw a 59% increase in sales in North America in 2022, reflecting their growing popularity. In contrast, Nike’s market share in the running shoe category dropped by 2% over the same period .

Additionally, Nike is struggling to keep up with trends like those set by Vivobarefoot, which specializes in barefoot shoes and a wide toe box. Vivobarefoot reported a 30% increase in sales in 2022, driven by the growing interest in minimalist footwear . Consumers are increasingly seeking shoes that offer a more natural running experience, and Vivobarefoot’s innovative designs are meeting this demand effectively.

Nike, once seen as the trendsetter, now feels like an older generation that you respect but not the one you want to hang out with. In the local Portland, OR, respect - they are local legends. When I lived there, I’d always get discount cards at social events to the Nike employee store and I’d go running with friends at their campus. I’m still a big fan of their Pegasus trail running shoes! However, even loyal fans like myself are noticing the shift in the market dynamics.

A survey by RunRepeat found that 35% of runners have switched brands in the last year, with many moving away from established names like Nike to newer, innovative brands like On and Vivobarefoot .

Do you still rep Nike, or have you moved on to the new new?