NBA superstar LeBron James has been compared to basketball legend Michael Jordan in every angle, including their sneakers. Both stars being endorsers of Nike, fans cannot help but put their sought-after pairs side-by-side.
LeBron and Nike recently unveiled the newest shoes in his signature line - the Nike LeBron 12 on September 16 in Beaverton, Oregon. According to Nike basketball VP of footwear Kelly Hibler in an article on Yahoo! Sports, the LeBron 12 is "Nike at its best", inspired by the concepts of LeBron James himself and incorporating innovative designs and technologies for ultimate performance and an aesthetic look.
Currently, Nike basketball has three signature footwear - the LeBron James, Kobe Bryant and Kevin Durant lines. Among the three, Lebron's shoes are the best-selling, raking in $300 million in sales for the company in 2013. LeBron's shoe sales increased 25 percent in 2014 too.
However, Matt Powell, a SportsOneSource analyst, reported, "LeBron may be the highest-selling active basketball player but (he) represents only about 10 percent of Jordan brand sales in 2013. It's really a drop in the bucket." He also added that James' return to Cleveland might adversely affect his shoe sales. "I see Cleveland being a negative. It's a small market. James' shoe sales were much smaller (when he played in Cleveland before) than in Miami," Powell said.
Nike, as a whole, earned $28 billion in 2013, making LeBron's $300 million truly a "drop in the bucket" in terms of overall company sales. It is also comparably small compared to what Jordan Brand, which is owned by Nike, brought in. Jordan Brand averages $2.5 billion revenue every year, which accounts for 58 percent of the market. The sale of retro models on a limited basis and introduction of new colorways have sparked the interest of young professionals who adored the Jordan models since their childhood days and now enjoy more buying power.
In a report by CNBC.com, Eric Tracy, footwear analyst for Janney Capital Markets, reported that LeBron's latest sneakers are still vital for Nike. He said, "It's critical in terms of sustaining the strength of the line, the brand and basketball category." According to Tracy, LeBron's signature shoes are refreshed at a faster rate to extend the cycle, thereby spurring customers to keep purchasing.
Overall, basketball shoe sales have been on the rise and its market is valued at $4.5 billion. Since 2012, sales growth has been in double figures, which Tracy said is triggered by Nike's pricing and innovative ideas.
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