Daily Archives: June 2, 2011

Nike Water Down.

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I don’t see action sports being a good fit for Nike, even though its a nice revenue stream today. According to a New York Times article today, the segment is underserved and Nike wants a piece.  When Nike bought Hurley, I thought it a great idea, but one to roll as a separate brand. Using Nike to go head-to-head with O’Neill, Billabong and Quicksilver, not so much.

They are spending big — hiring 72 and Sunny, big name athletes on the action sports circuit, hot videographers and commercial directors, but it all feels a little “all hat no cattle.”  The tactics are right, but the business idea wrong.  I may have said the same back when Nike moved into golf, but then they tied their swoosh to Tiger and it worked.  Now they want to extend to skateboarding, surfing and snowboarding. Sure, it will spike, but long-term it will diminish the brand. Nike should have put wood behind Hurley.  Water culture people (frozen or warm) are fickle. They create style, they don’t get it out of a box or pad/pod.

Google’s culture of technological obesity (gobbling in every direction) is not dissimilar to this overstep by Nike. Chill with the kicks, the golf, and the apparel. Enjoy global growth. And back away from the table. Water sports will water down the brand. Peace.