Since its inception in 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, Nike has transformed from a fledgling footwear distributor into one of the world’s most iconic sportswear brands. Renowned for its innovation, sleek designs and cultural influence, Nike’s products are no longer just athletic gear – they are symbols of aspiration, performance and even investment. By pushing the boundaries of sports technology and continuously adapting to the changing landscape of fashion, Nike has cemented its place in both the sports and lifestyle sectors, becoming a driving force in global culture.
Nike’s rise to prominence can be traced back to its relentless pursuit of performance innovation. The company’s early success was built on the iconic ‘Waffle Trainer’, designed by Bowerman in 1974. Inspired by his wife’s waffle iron, Bowerman created a sole with better grip, making the shoe lighter and faster – a design that revolutionised running footwear and set the tone for Nike’s future innovations.
The brand’s breakthrough moment came in 1987 with the release of the ‘Air Max 1’, featuring a visible air cushioning unit in the heel, making its technology a centrepiece of design. This not only redefined comfort in athletic shoes but also marked the beginning of a trend where trainers became cultural symbols, coveted by both athletes and collectors. From the development of the ‘Flyknit’ technology, which minimises waste through its unique thread construction, to the energy-returning ‘React Foam’ cushioning, Nike’s technological advances are a key reason for its enduring appeal and industry dominance.
Did you know the original Nike Air Max trainer was the first shoe to incorporate air cushioning in a way that was visible? This design not only improved performance but became a cultural statement, influencing trainer design for generations. Nike’s strategy to blend functionality with standout design has played a crucial role in making their products must-have items both on and off the field.
Marketing has been another powerful driver of Nike’s success. From the groundbreaking ‘Just Do It’ campaign launched in 1988 to collaborations with global stars like Michael Jordan, Nike has mastered the art of storytelling. The Air Jordan line, first released in 1985, became an instant success – fueling trainer culture and turning Michael Jordan into a global icon. This move was pivotal, as it forever linked Nike with the worlds of basketball and street culture.
Today, Nike is more than just a sportswear brand – it’s a global cultural phenomenon. Its ‘Swoosh’ logo and ‘Just Do It’ slogan have become universal symbols of determination, pushing boundaries and striving for greatness. Through strategic partnerships, sponsorships and collaborations, Nike has positioned itself at the forefront of sport, fashion and even social movements.
From Serena Williams dominating tennis courts in custom Nikes to collaborations with fashion designers like Virgil Abloh and brands like Off-White, Nike has consistently (and quite successfully) blurred the lines between sportswear and high fashion. The brand’s ability to anticipate trends while staying true to its roots in athletic performance has enabled it to capture the imaginations of athletes, artists and influencers worldwide.
The Nike ‘Dunk, Air Force 1’, and ‘Air Max’ lines, in particular, have transitioned from basketball courts to runways, streets and galleries. These trainers now command significant attention from collectors, with some limited-edition models fetching thousands of euros in the resale market. The brand’s influence extends beyond fashion and sportswear – it’s a cultural powerhouse that shapes trends and influences consumer behaviour globally.
Much like Rolex in the luxury watch space, Nike trainers have evolved from athletic footwear into high-value assets within the collectible market. Particularly, limited releases and collaborations, such as those with Travis Scott, Off-White and Supreme, have fuelled the rise of ‘sneakerheads’ who view Nike trainers not only as fashion statements but as investment pieces. According to StockX, a major trainer resale platform, some rare Nike trainers have appreciated by as much as 55% since 2020. The Air Jordan 1 Retro High OG ‘Chicago’, Off-White x Air Jordan 4, and Nike SB Dunk Low ‘What The Dunk’ have all experienced remarkable value increases, transforming them into prized collector’s items. The resale market, fuelled by scarcity and the cultural significance of certain models, has turned select Nike trainers into sought-after investments.
*Source: https://sothebysrealty.ae/the-journal/most-expensive-nike-shoes/
Particularly in the pre-owned market, rare Nike trainers continue to grow in value. Over the past five years, the trainer resale market has grown by an average of 30% annually, significantly outpacing traditional investments like stocks and real estate. This shift has been largely driven by the brand’s strategic approach to scarcity, with limited edition releases and exclusive collaborations generating hype and demand.
As of 2024, the trainer resale market continues to flourish. While prices for some of Nike’s most exclusive releases have softened slightly due to shifts in consumer spending, the long-term outlook remains positive. Models like the ‘Nike Dunk Low, Air Jordan 4’, and ‘Air Max 97’ have seen modest price declines, creating potential buying opportunities for savvy investors.
Nike’s stock has had a challenging five years however. Its performance has been flat, with a five-year compounded annual growth rate (CAGR) of -1.6%. Despite solid earnings, revenue growth has been slower, and the stock price dropped 24% in 2024 alone. Currently, Nike trades at a significantly lower valuation than its peak in 2021, making it a potentially attractive opportunity for long-term investors. However, its near-term outlook remains uncertain due to competition and economic pressures, so it could be a good buy depending on your risk tolerance.
You could otherwise also consider adding one or two fractions of our newest Nike sneaker collectible to your portfolio instead of Nike shares:
Nike
Air Jordan OG 4 Eminem Encore signed by Michael Jordan
However, looking ahead, the growing interest in sustainable fashion and technology-driven trainers may present new investment avenues. Nike’s upcoming sustainability-focused ‘Move to Zero’ line and the continued release of innovative technologies are likely to keep the brand at the forefront of both the athletic and fashion worlds.
For those seeking Nike’s most coveted pieces, traditional retail is often not an option due to high demand and limited supply (except if you are willing to literally camp outside Nike stores). However, platforms like GOAT, StockX, and Sotheby’s offer alternative buying routes, providing access to both vintage treasures and the latest releases. The secondary market not only provides flexibility but also opens up opportunities for collectors and investors to acquire iconic and limited-edition trainers.
Here are some of our own success stories with Nike sneaker collectibles:
Nike Yeezy 2
‘Red October’
Distinctive Yeezys with a staggering +40% gain in value within a 25 month holding period.
Nike Air Jordan 3/8 Retro
‘Kobe Pack’
An ode to basketball legend Kobe Bryant, this sneaker exited with +20.00% within 14 months.
Nike Mag
2011
A rare ‘Back to the Future’ sneaker with a solid 29.03% value gain in 33 months.
Nike Air Force 1
‘Scarr’s Pizza’
A limited ‘New Yorker’ edition with a +21.67% value increase in 20 months.
Nike Off-White
Air Force 1 MCA
A classic design to honour Virgil Abloh, with an increase of +23.91% in a mere 12 months.
Nike’s ability to blend innovation, cultural relevance and exclusivity has not only secured its place as a sportswear leader but also as a valuable investment asset. Whether you’re an athlete, collector or investor, Nike’s products offer a combination of functionality and cultural significance that makes them highly sought after. With its sustained commitment to innovation and its influence on global culture, Nike remains a powerhouse in both performance and investment markets.
