--- title: "Nike Loses Market Dominance and Customer Loyalty" url: https://noti.group/nike-loses-market-dominance-and-customer-loyalty/ language: en publisher: "Noti Group" section: "Business" published: 2026-10-01T20:51:09.000Z updated: 2026-10-01T22:35:04.605Z id: 7148f0f3-93a8-47d6-be74-5930c1a1f7bf source: "BBC News Business https://www.bbc.co.uk/news/articles/c6je85jzk9y7o?at_medium=RSS&at_campaign=rss" attribution: "Link to https://noti.group/nike-loses-market-dominance-and-customer-loyalty/ and name Noti Group when you quote or summarize this story." --- # Nike Loses Market Dominance and Customer Loyalty Nike, once a market leader, has been losing ground to its rivals and facing declining sales and customer loyalty due to its struggles to adapt in a rapidly changing market. Nike's once-stellar reputation has taken a hit in recent years, with the sportswear giant struggling to maintain its market dominance. The brand, named after the Greek goddess of victory, has been losing ground to its rivals and facing declining sales and customer loyalty. The company's transition from disruptor to establishment has not been smooth, and it is now engaged in a turnaround plan aimed at reversing its fortunes. Nike's latest financial results suggest that efforts led by veteran executive Elliott Hill are paying off, but the pace of change remains slow and laborious. Nike's recovery was dealt a significant blow last week when football star Kylian Mbappé ended his 20-year association with the brand to join Swiss rival On. The Real Madrid striker's departure raises questions about Nike's ability to retain its status as a top choice for elite athletes, as well as their fans. The impact of these missteps has been substantial, with hundreds of billions of dollars wiped off Nike's stock market value over the past five years. Its share price plummeted by 75% during this period, underscoring the brand's struggles to adapt in a rapidly changing market. Nike's struggles to adapt to a rapidly changing market have been evident in its declining share price. Last month, the company was ejected from the S&P 100 stock market index of top US blue-chip firms, a move that underscores its difficulties. Veteran sports retail analyst Matt Powell points to several strategic errors made by Nike as key factors contributing to its woes. One such mistake was the decision to cut ties with retailers and sell directly to customers online. This move has been difficult for the brand to reverse, especially when it comes to making limited edition items more widely available. The more these exclusive shoes became accessible to a broader audience, Powell notes, the less interest they generated among consumers. Another self-inflicted wound he identifies is Nike's prioritization of digital operations over product innovation. This shift in focus has led some to joke that the company is trying to turn itself into an online marketplace like eBay. This criticism was partly aimed at John Donahoe, the former eBay executive who oversaw Nike's pivot towards direct-to-consumer sales during his tenure as CEO. His four-year stint coincided with the company's plummeting share price, despite initial gains driven by pandemic-related boosts to online shopping. The shift towards newer footwear brands has been a significant blow to Nike's market share. As online shopping gained momentum during the pandemic, these emerging brands were quick to capitalize on changing consumer preferences. Shop shelves that once boasted Nike products now feature brands such as On and Hoka, which have become increasingly popular among consumers. Nike's dominance in the basketball market was largely due to its bold partnership with Michael Jordan in the mid-1980s. At a time when the company was still primarily known for its running shoes, this strategic move paid off in a big way. The Air Jordan brand, launched as part of this partnership, became an instant success and remains a cornerstone of Nike's identity today. This innovative approach to marketing and branding helped establish Nike as a major player in the basketball world. However, some argue that relying on past successes is not enough for companies looking to stay ahead in the fast-paced fashion industry. Nike's roster of top athletes still looks impressive, featuring names like Rory McIlory and Vinicius Junior. However, recent high-profile departures have raised questions about the company's ability to retain its biggest stars. The loss of Kylian Mbappé is a significant blow for Nike, as he was one of their most prized assets, having been with the brand since he was nine years old. His move to On has been seen as a bold move by the young footballer, who is looking for new opportunities and a chance to stand out from his peers. Mbappé's decision to leave Nike may have parallels with Michael Jordan's decision decades earlier to choose Nike over Converse and Adidas. By partnering with Nike, Jordan was able to become synonymous with the brand, which helped drive its growth and success. Some analysts believe that athletes are looking for more than just a sponsorship deal when they partner with a brand. They want to be part of something big and meaningful, where their contributions can help drive change and growth. This shift in mindset may be contributing to Nike's struggles to retain its top talent. As part of its turnaround plan, dubbed "Sport Offense", Nike expects to see positive signs emerging next year. This ambitious initiative aims to revitalize the company's flagging fortunes. However, despite its efforts, Nike still has significant challenges to overcome in several key areas. The company's sportswear division, as well as its Jordan brand and Chinese operations, all require further improvement according to internal assessments. Nike has announced a plan to reduce costs by $2.5bn by 2031, with some of these savings coming at the expense of job losses. This decision reflects the company's determination to adapt to changing market conditions and stay competitive in an increasingly crowded marketplace. --- Source: [BBC News Business](https://www.bbc.co.uk/news/articles/c6je85jzk9y7o?at_medium=RSS&at_campaign=rss) Published by Noti Group: https://noti.group/nike-loses-market-dominance-and-customer-loyalty/