Nike is reaping rich dividends from its Colin Kaepernick brand promotion strategy. In spite of opposition, criticism and an initial dip in Nike’s stock values the brand has eventually gained with an unprecedented 61% surge in its sales in the US market.
There is no end to Nike’s lightening fortune ever since the company has rolled its 30th anniversary “Just Do It” advertising campaign featuring the controversial NFL free-agent Colin Kaepernick.
According to a research, the American sportswear giant has sold out 61% more merchandise since the controversial ad campaign featuring former San Francisco 49ers quarterback came out this month.
The research, ye Thomson Reuters in collaboration with StyleSage Co, reveals that Nike sold out far more items between September 3 and 13 than in the 10-day period before the ad came out. The company discounted fewer products during the same period and saw its Colin Kaepernick women’s jersey sell out on Sept 17.
The percentage of shoes and apparel on discount has decreased from 32 to from the ten days prior to the 30th anniversary ad launch versus the 10 days following it. The average discount did not change at all. The average discount of all products is only 8%.
Amid receiving mixed reactions, Nike netted media mileage worth $43 million within 24 hours of sharing the campaign on twitter with a 31% surge in online sales. The stock price, after suffering a sharp 3.9 per cent plummet initially, climbed up nearly 7 per cent a week later.
The gains in the first 24 hours, according to Bloomberg, included $10.91 million in negative buzz, which also included a sharp criticism by Trump; $19.01 million in positivity created by the campaign and $13.76 million in the neutral news coverage.
Kaepernick sparked a national controversy and became a subject of intense, heated debates after he started kneeling during the national anthem before the start of the game to protest against protest racial injustice and police atrocities.
The 30-year-old first tweeted the ad, captioned as “Believe in something. Even if it means sacrificing everything,” on the Labor Day weekend which immediately called for a boycott of the Nike products from the masses with some posting videos of themselves on social media burning Nike products.
US President Donald Trump, who has always taken a bitter stand against NFL players kneeling during the national anthem, heavily criticised the company while declaring them as unpatriotic.
The dark side of protest against the campaign saw The Parks and Recreation Department at Kenner city in the Louisiana State banning Nike products. The Mayor in the memo, released by the office of the City of Kenner Mayor, E Ben Zahn Ill, strictly warned that none of the city’s $125,000 leisure supplies budget be spent on Nike products.