Nike an Innovation Company at Heart: Poser

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Oct. 9 (Bloomberg) -- Sam Poser, analyst at Sterne Agee, talks with Stephanie Ruhle about Nike’s ability to innovate while constantly moving its brand forward and how it stacks up to its competition. He speaks on Bloomberg Television’s “Market Makers.”

Evaluate nike, are they even a shoe company or are they so much more?

What they are very innovative.

The are really in the heart of a shoe company and a performance company.

Their ability continue to build on that over time is amazing.

Who would've thought that you could make a shoe that light.

The men's size nine, it weighs 5.6 ounces.

Is this shoe really about performance athletes or does everyone just want the solution?

Yes.

The answer is yes to both of those questions.

At their heart, it is a good shoe to run in the month but at the same time, a do capture the imagination of a lot of people.

That is why nike is one of those few brands, maybe ralph lauren is another where you put the logo on it and it totally enhances the brand.

Other people like to think they can do that, but nike is one of the few brands that can really do that.

Since 2012, nike has secured over 600 patents.

The number two adidas, 30. what does that say?

This is a very competitive company.

To stay ahead of everybody, it is.

One of the things they realize is that you have a under armour and other people coming up historically, nike has performed the best when their competitors are doing well.

As a sum of their competitors have improved, they have stepped up and are doing those things.

You never know if it is all necessary, but if it turns into something five years from now, it is necessary.

People love to talk about under armour but what is so important to nike is international and under armour has no existence international.

Are they really a threat to nike or justices make for interesting hombre station?

It builds up the marketplace.

In the u.s., it is between apparel and under armour apparel and there's a pretty good fight going on.

Internationally, it is only six percent of under armour's business but they have an opportunity to grow it.

The better under armour or others do, it raises the game for nike.

Back about eight years ago, there really was not anything going on.

Nike was not innovating, there is not a whole kind of energy here and there was not energy in the athletic space.

When everyone is performing well, it brings out the best.

How much of an advantage does nike have?

They have wholly owned subsidiaries all over the world where the competitors need to go through distribution channels.

It depends on the market.

That is an advantage but it also has a huge expense attached to it.

If you look at it, this is bigger volume, it is more than everyone else's volume, with the exception of adidas.

They do certainly have an advantage.

You have to remember that everybody is always looking for something new and sometimes it is a new brand.

Sometimes they have to be as aggressive from a marketing and innovation perspective.

You say that everybody needs something new, how necessary is that?

People said that the fuel ban is not so hot.

How important is that to their core business or do they just need to sell a lot of shoes?

It is important for the halo.

They have said that the fuel band is good but it is not where it needs to be and it does not do everything it needs to do.

Oh, should they be buying a jawbone or some of their competitors?

That goes back to what is important to you.

I think the brand has a halo around it where people want to be part of what they are, so it works.

The question is not necessarily is it the best, as if make me feel the best?

That is a more touchy-feely response than does it work better.

Is the iphone better than a samsung phone?

Who knows.

Most of the people that have apple don't care.

It is the same kind of thing

This text has been automatically generated. It may not be 100% accurate.

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