Nike is currently facing significant challenges, with a noticeable decline in sales and its stock value plummeting by over 25% in the past year. To address these issues, the company has announced a collaboration with Kim Kardashian, launching a new brand named “NikeSkims.” This collection draws inspiration from her successful shapewear line and aims to revolutionise the global activewear market by offering innovative products specifically designed for female athletes.
While specific details about pricing and product images remain limited, NikeSkims is set to debut in the US shortly, with plans for an international rollout later this year. This collaboration marks a departure from Nike’s traditional strategy, as the company has typically relied on in-house developments or partnerships with acclaimed athletes, like Michael Jordan, rather than collaborating with external brands.
According to official statements, Skims proposed a shared product line, which led to the creation of NikeSkims, promising to set new standards in activewear by providing a comprehensive range of training apparel, footwear, and accessories. Analysts suggest this partnership is vital for Nike, helping to reinvigorate its relevance in the highly competitive activewear sector, where it has recently struggled against brands such as Lululemon and Alo.
Neil Saunders, a retail analyst, comments that although Nike possesses the necessary expertise to develop its own womenswear line, it has faltered in its storytelling, innovation, and consumer engagement. The partnership with Skims is expected to address these weaknesses effectively.
Kardashian’s brand, Skims, has proven to be a success, boasting a valuation of approximately $4 billion as of July 2023. The brand has expanded its offerings to include a men’s line and secured sponsorship deals with entities like the NBA, WNBA, and Team USA for the upcoming Paris Olympics.
In the midst of these developments, Nike faces increasing competition from emerging running brands such as Hoka and On. Changing consumer behaviour is also a concern, as shoppers seem to be prioritising essential items and experiences over luxury sporting goods. Recently, Nike has reported an 8% decline in sales for its latest quarter, indicating ongoing struggles, although shares did experience a slight rebound following the announcement of the Kardashian partnership.