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No. 23 returns with the Air Jordan XX3
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As Jordan’s success grew on the courts, so did Nike’s in the shoe industry.
People from the streets to the suburbs were wearing $100-plus basketball shoes, which was unheard of at the time.
That price is the norm today, but it has launched a backlash, such as the partnership between New York Knicks player Stephon Marbury and the Steve & Barry’s store chain to sell basketball shoes for $14.98 — a direct stab at pricey sneakers like Air Jordans.
At that time, the Air Jordan captured a mix of design, marketing, athleticism and player charisma that hadn’t been seen before in the industry — everyone wanted to “Be Like Mike.”
“Athletes had been endorsing products for years prior to this,” said Tinker Hatfield, Nike’s Vice President of Innovation Design and Special Projects.
“But they were just signing their name to the shoe. I think there was a very understandable difference...Michael’s personality and even the changes in the game and inspiration from other walks of life were all sort of being designed into this product and that made it more interesting.”
Jordan and Hatfield work together on the design and function on many of the Air Jordan shoes. Jordan has final say on design matters.
Air Jordan was the lightning in the bottle that every company hopes for.
Advertising images of Jordan soaring across the sky were ubiquitous. Spike Lee could be heard hollering “It’s gotta be the shoes” on television. And Jordan’s outstretched arms with the swoosh nearby adorned walls across the country.
Nike quickly moved from a running company and newcomer to the basketball category to the market leader. Some industry estimates put Nike’s current share of the basketball shoe market at about 85 percent. Far behind are Adidas and Reebok.
The idea of adding such unusual style to a product or so closely aligning with a personality was novel at the time, but it paid off.
Other companies tried to follow suit but it was like trying to come up with the next Harry Potter or iPhone for basketball.
The relationship completely changed the idea of sports marketing. Companies now make athlete sponsorships the centerpiece of their business, spending millions signing them and designing product lines and marketing platforms around them.
Jordan’s original deal seems like a pittance compared to multimillion-dollar contracts inked these days, such as Nike’s $90 million agreement with LeBron James.
“The beginning of the Jordan era marked a new and more sophisticated approach to leveraging an athlete,” said Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of Oregon.
Like any bet, athletic companies take their risks — some pay off, like Tiger Woods or LeBron James. But some don’t, a la Michael Vick. Nike terminated its contract with Vick last August after his plea agreement on dogfighting charges.
Jordan was spun off into its own division in 1997, a move that some high up in Nike questioned when Jordan retired.
But the business is a key component, with new players signing on under the brand. Nike has spun that Jordan swagger into performance and luxury apparel for men and woman.
The Air Jordan remains the pinnacle piece for shoe collectors. The original Air Jordan 1 can sell for thousands of dollars, depending on various factors.
Jordan said: “It blows my mind that even after five years removed from the game the shoe would be stronger than ever and I would still be greeted by fans as if I had just won a championship all over again.”
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