Nike, once the unchallenged leader in athletic footwear, has faced significant hurdles in recent years.
1. Sales Decline and Market Pressures
In fiscal Q3 2025, Nike reported a 9% drop in revenue to $11.3 billion, marking its fourth consecutive quarter of declining sales. Digital sales fell 15% year-over-year, and the company experienced a 17% decrease in China sales.
2. Tariff Impacts and Pricing Challenges
New U.S. tariffs on imports from Asia have increased production costs for Nike, leading to price hikes on select products starting June 1, 2025. These increases may affect consumer demand, especially amid rising competition.
3. Strategic Missteps
Nike's heavy reliance on direct-to-consumer sales and limited innovation in product lines have been criticized. The company's focus on classic models like the Air Jordan 1 and Air Force 1, without significant updates, has led to consumer fatigue.
ASICS: Steady Growth Through Performance Focus
ASICS has capitalized on its reputation for performance and quality, leading to a 13% increase in global revenue in 2024. In North America, revenue grew by 18.7%, driven by strong demand in specialty running segments and e-commerce.
The brand's emphasis on technical innovation and comfort has resonated with both serious runners and casual consumers seeking reliable footwear.
On Running: Innovation and Lifestyle Appeal
Swiss brand On Running has emerged as a formidable competitor, reporting a 29.4% increase in sales in 2024. Known for its CloudTec cushioning technology and sleek designs, On has attracted a growing customer base.
The company's focus on innovation and lifestyle appeal, coupled with high-profile endorsements, has positioned it as a modern alternative to traditional athletic brands.
New Balance: Consistent Growth and Quality Craftsmanship
New Balance achieved a record $7.8 billion in global sales in 2024, marking a 20% increase from the previous year.
The brand's commitment to quality craftsmanship, including manufacturing in the U.S. and U.K., and its focus on comfort and fit have contributed to its steady growth.
Conclusion
Nike's recent challenges have created opportunities for brands like ASICS, On Running, and New Balance to capture market share by focusing on innovation, quality, and meeting consumer needs. As the athletic footwear market continues to evolve, these emerging brands are well-positioned to shape the industry's future.