Nike in the Action Sports Market

The action sports industry serves a niche market. Only in recent years have action sports become mainstream and their athletes widely recognized. Similar to the music industry, it has been challenging to market to this “underground” demographic, as retailers seek profit, while consumers seek scarce products. Skaters, snowboarders, bikers, etc. desire one-of-a-kind or limited-edition active wear that can only be found at local shops. Much like music moguls want to be the first to hear new music, action sports athletes want to be among the first and the few to own specialized sports gear. This is where Nike has faced its greatest challenge—balancing the company’s desire to make a profit with the target market’s desire to remain “niche” or “underground.” Though Nike has been in the action sports industry for nearly 10 years now, it has only seen success in the market recently. Nike’s early attempts to enter the market were scoffed by counter-campaigns such as one competitor’s “Don’t Do It” slogan. Nike’s early attempts to make action sports shoes failed, in part because the brand was seen as “too corporate” for the underground lifestyle of athletes, and because the shoes lacked the quality athletes desired. Nike nearly offended the industry with patronizing commercials back in the 1990s, another failed attempt to reach the demographic. Nike needed to realize that they weren’t just selling shoes; they were selling a lifestyle, a culture. In recent years, Nike has redefined its market entry strategy, and has seen more success. Nike started by marketing its products using smaller-scale shops and brands which were housed under the Nike parent company (Savior shops, Converse shoes, etc.) Nike re-released its original Air Jordan shoe, which was popular with skaters in the 1980s. This time, Nike sold only to local