CALGARY — Nike has long been seen, alongside Adidas, as one of the 'Big Two' in the world of sportswear and athletic clothing.But since the companies' peak in 2021, the price of Nike shares has fallen around 78%, marking a stock price the company hasn't seen in 12 years, and, to make matter worse, the company has lost more than $200 billion in market value in that timeframe.This downfall has come despite the company sponsoring some of the biggest sports stars and teams in the world, with athletes like LeBron James, Cristiano Ronaldo, and Tiger Woods all being Nike brand ambassadors.Even comments from internal meetings show that the higher-ups are finding it difficult to project a positive and healthy outlook for the companies' future."I'm so tired, and I know you are too, of talking about fixing this business," Nike CEO Elliot Hill was quoted as saying in an internal meeting earlier this year according to Bloomberg."You can't just sit there and say everything's great.".Nike has struggled to adapt to recent changes in consumer preference as well as an increase in cheaper and higher-quality alternatives in the sportswear market.But one thing that many online commentators have pointed out as being emblematic of the companies' downfall is Nike's embrace of 'woke' politics in their marketing.Notable examples of the company promoting progressive, or 'woke,' movements include the "Equality" shoe campaign involving LeBron James and Megan Rapinoe, as well as their "For Once, Don’t Do It” campaign in the wake of the death of George Floyd.The company also faced backlash for their 2018 ad featuring NFL player Colin Kaepernick, who had gone viral after making a point of taking a knee during the playing of the American national anthem in support of the Black Lives Matter movement. Nike has been accused, from both sides of the political spectrum, for using social issues, like the killing of George Floyd, as a marketing tool..The companies' eager embrace of progressive social issues as a way to market their athletic wear is not inherently unique in the industry, but the way that Nike has so doggedly pushed this as a key pillar of its branding has certainly affected its perception among consumers who aren't so progressively inclined.The phrase "go woke, go broke" has been used ad nauseam when describing the current state of Nike, but it is not just the company's political marketing that has led it to see its stock slump so dramatically.As stated before, not only has the athletic clothing landscape become an increasingly competitive market, but the cost to manufacture and ship clothes has risen exponentially.Nike has also seen a significant loss in its market share in China, seeing a decline in revenue of 12% in the East Asia nation of 1.4 billion people.It can likely be assumed that consumers in China have not had their purchasing habits affected by the companies' embrace of the North American culture war, but it is more likely that there are just cheaper options available that have similar or better quality than Nike..The cause of Nike's decline is likely a combination of the two factors.Economic issues mixed with a partisan approach to branding have likely caused the companies' traditional consumer base to seek out alternatives in an industry that is becoming ever more fickle with what it perceives as 'trendy' or 'cool.'The company was once renowned for its community-based, organic marketing that was able to tap into niches that other sportswear companies traditionally struggled to get access to.Even Nike spokesperson LeBron James mentioned this aspect when asked about what the brand could do to revitalize itself. "You gotta get back into the roots," James said about the current state of the brand. "When I was coming up, you had people that was literally out in the communities talking to these younger generations, asking them what they like, what they don't like."Nike's pivot from organic, community-oriented branding to corporate, ideological advertising has clearly hurt the company's image.The only question that remains is, will they be able to recover?
