Yahoo Sports recently published an article eluding to the fact that Nike's 30th anniversary #JustDoIt campaign featuring Colin Kaepernick was intended to target a younger generation. The article titled “Nike bets on millennials with Kaepernick spots” notes that Nike risks alienating more conservative consumers, while scoring points with a more youthful crowd. I agree that this is a risk and a chancy bet to take -- but I’d like to pose the question, is Nike actually betting on millennials, or is Nike really betting on Black? And an even more alluring question, is there much difference between black influence and millennial influence?? Well, studies actually show – there's not much of a difference at all. In fact, according to a Nielsen study, 73% of whites believe that African-Americans influence mainstream culture. I repeat:
"73% of whites believe that African-Americans influence mainstream culture."
What I'm really trying to say here, is that the influence of black relevance in the realm of sports, fashion, music and entertainment, etc. is far too impactful to be overlooked. So when there is an opportunity to get behind a cause that could realize significant dividends, any good business and smart investor should want to get on board. So while the rest of the country is trying to decide on the appropriate level of disrespect to assign for kneeling during the national anthem, Nike has acknowledged there is a real movement going on. And they are unapologetically catering to a demographic which dictates mainstream trends, drives technology forward and defines what's cool and what's not – all of which ultimately impacts market share and produces real $$$ return.
Call it a Marketing campaign.
Call it Revolutionary.
Call it Whatever you want.
I call it an arbitrage opportunity!
"arbitrage opportunity! "
Nike could reap massively from the benefits of this campaign. By no means am I suggesting that the campaign was a calculated business strategy, loaded with financial motives (and quite frankly even if it was, do I really care? Nope. I’m just glad its here). But I do believe Nike is taking a risk, a huge bet.
Nike is betting on Black. And quite honestly, betting on Black is betting on the future. And that my friends, this is where you want to be!
So I salute you Nike. Cheers to 30 years of Just Doing It!
I'm a longtime NKE stockholder and consumer. And I ain’t going nowhere!
Signed yours truly,
A black millennial investor, who believes in something. Ready to win.