‘Nike’s Back’: How Its New CEO Plans to Reassert the Brand’s Dominance

Summary

Elliot Hill's journey from intern to Nike's CEO reflects his deep commitment to the brand's core values of sport, human potential, and performance. After over three decades at Nike, Hill returns to lead the company through challenging times marked by declining sales and market share. He aims to refocus on Nike's core, prioritize innovation, and strengthen relationships with retail partners. Hill emphasizes the importance of athlete partnerships and product innovation, while working to reposition Nike as a premium brand in the competitive market of sports apparel and footwear.

Takeaways

• 😀 Hill believes that sport is the core of Nike’s identity, emphasizing human potential and performance as the foundation of the brand.
• 😀 After starting as an intern at Nike in 1988, Elliot Hill has climbed the ranks, eventually becoming the CEO, overseeing significant growth and challenges for the company.
• 😀 Nike’s valuation has skyrocketed from $700 million in 1988 to over $100 billion, with Hill having played a key role in its growth.
• 😀 Hill’s return to Nike as CEO came after the company faced declining sales, falling stock prices, and strained retail relationships during the pandemic.
• 😀 Hill emphasizes Nike’s focus on putting athletes at the center of the brand, using insights from athletes to drive innovation and emotional storytelling.
• 😀 Nike continues to focus on elite athlete partnerships, including its significant collaboration with Michael Jordan, which has driven over $7 billion in annual sales.
• 😀 Hill stresses the importance of expanding opportunities in women's sports, highlighting investments like the $28 million endorsement deal with WNBA player Sabrina Ionescu.
• 😀 Nike faced challenges with excessive promotions and discounts, and Hill plans to reduce these to uphold the brand’s premium value while still offering excellent consumer experiences.
• 😀 Hill is dedicated to rebuilding relationships with wholesale partners like Foot Locker, recognizing their importance to Nike's overall strategy and brand development.
• 😀 Nike's future strategy will focus on five key categories: running, basketball, training, football, and sportswear, aiming to strengthen its position against competitors in the market.
• 😀 Product innovation, driven by athlete partnerships and insights, will be key to Nike’s growth, as seen in their ongoing collaborations with athletes like LeBron James.

Q & A

How did Elliot Hill's journey at Nike begin?

Elliot Hill began his journey at Nike as an intern in 1988, starting in apparel sales. His passion for the company grew when he wrote a paper about Nike in a sports marketing class, which eventually led him to pursue an internship and a career at Nike.

What was Nike's situation when Hill took over as CEO?

When Hill became CEO, Nike was dealing with declining sales and a fall in stock price. The company faced challenges after its aggressive e-commerce approach under former CEO John Donahoe, which led to strained relationships with retail partners.

What role did athlete partnerships play in Nike's success under Hill's leadership?

Athlete partnerships have always been a core element of Nike's success. Hill emphasized that Nike's strength lies in celebrating athletes and incorporating their insights into product innovations. He also highlighted significant partnerships, like with Michael Jordan and, more recently, women's basketball player Kelsey Clark.

How did Hill approach his first 60 days as Nike's CEO?

During his first 60 days, Hill focused on re-engaging with the team, holding an all-employee meeting to introduce himself. He aimed to connect with employees, gather insights, and discuss the company's direction, particularly in putting athletes at the center of everything Nike does.

What changes did Hill make regarding Nike's promotional strategy?

Hill acknowledged that Nike had become too promotional, offering excessive discounts, which hurt both the brand and margins. He has since moved to a strategy where Nike's direct channels, both digital and physical, would lead the marketplace, focusing on fewer promotions and elevating the consumer experience.

How did Hill address Nike's relationship with wholesale retailers?

Hill emphasized the importance of maintaining a balanced marketplace. He recognized that Nike's relationships with retail partners like Foot Locker and Dick's Sporting Goods had been strained, but he has made efforts to rebuild those connections, ensuring that they understand the value of collaborating with Nike.

What is Hill's strategy to reestablish Nike as the premium athletic brand?

Hill's strategy to reestablish Nike as the premium athletic brand centers around offering innovative, desirable products. He believes that a strong product lineup, especially in running shoes, will help Nike regain market share from competitors, as Nike focuses on deepening relationships with retail partners.

Why did Hill say that sport is at the heart of Nike's brand?

Hill explained that Nike lost its sharp focus on sport, particularly in terms of gender-specific products. By reorganizing the company to focus on sport first (e.g., running, basketball, football), Nike aims to strengthen its identity and better serve athletes' needs, with a specific focus on gender-specific opportunities.

What is Hill's approach to product innovation at Nike?

Hill's approach to product innovation involves working closely with athletes to gather insights and create products that enhance performance. He mentioned specific examples, such as LeBron James' involvement in designing his signature footwear, which reflects Nike's commitment to athlete-driven innovation.

How did Hill's leadership style evolve as he transitioned to CEO?

Hill emphasized that authenticity is key to his leadership style. Even with the CEO title, he believes in staying true to who he is, interacting directly with employees, and remaining grounded by doing simple things like getting his own coffee and working out in Nike's gyms, ensuring that his leadership approach remains authentic and approachable.