A new report from financial services and public relations firm FinancePR.com claims that Nike is the world’s most valuable apparel company with a valuation of $30.44 billion ahead of its biggest rivals Gucci, Louis Vuitton and Adidas. Nike’s closest rival Gucci reached second place in the same valuation with a valuation well below $16 billion, while Louis Vuitton and Adidas came in behind with less than half Nike’s valuation. at $15 billion and $14 billion respectively.
Nike is named most valuable apparel brand of 2021 despite supply chain issues
Despite Covid-19-related supply chain issues in its market last year, the results reveal that Nike has upped its game, year on year, and managed a 1% increase in sales in the last quarter. .
Data shows that a key element of Nike’s success is its direct-to-consumer (DTC) channel, Nike Direct, which accounted for 43.5% of total Nike brand sales in the second quarter of fiscal 2020/ 21.
The results also highlight that customer loyalty is high with the brand. Even at the onset of the pandemic, Nike managed to increase sales from $39.1 billion in 2019 to $44 billion in 2020. The United States remains the sportswear company’s largest customer base, accounting for approximately 40% of all sales.
Nike enters the metaverse
The shoes remain Nike’s bestseller, netting $28 billion in sales for the brand in 2021, but the company is keen to stay ahead of the trends most relevant to its core demographic. In December 2021, Nike ventured into the metaverse for the first time when it acquired virtual sneaker startup RFKT.
At the time of the announcement, John Donahoe, President and Chief Executive Officer of Nike, Inc. said, “This acquisition is another step that accelerates Nike’s digital transformation and enables us to serve athletes and creators globally. intersection of sport, creativity, games and culture. ”
While Darcey Jupp, Associate Apparel Analyst at GlobalData, exclusively told Just Style: is already imposing on this new market, and its competitors will fall behind. if they don’t join them now.