Nike Is Being Dropped From The S&P 100 After Falling Nearly 80% From Its Peak

@ryanpineda

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Promoted product

Nike

Nike delivers innovative products, experiences and services to inspire athletes.

22 videos19 creators

Why it worked

The video taps into a common sentiment about established brands losing their edge and uses relatable comparisons to fast food and athletic wear to illustrate its point about declining product quality despite strong brand recognition.

Summary

The video discusses how Nike's stock has fallen significantly, suggesting that despite its strong brand equity, its product quality has declined and competitors have surpassed it. It contrasts Nike with McDonald's and In-N-Out, highlighting how the latter two maintain quality while Nike is perceived to be selling lower-quality items at high prices.

Structure

1Nike's stock drop and exit from S&P 100
2Comparison of Nike's brand equity vs. product quality
3Competitors out-innovating Nike
4

Original caption

Nike is selling cotton t-shirts for $60 and wondering why their stock is down 80%. Same story as McDonald’s, decades of brand equity masking a product that’s been out-innovated by competitors. When your brand is so diluted it ends up at Marshalls, there’s your answer.

More from @ryanpineda

Product placement

Nike (ACTS - sells athletic apparel and footwear; removing it would change the video's topic) McDonald's (ACTS - sells fast food; removing it would change the video's topic) Lululemon (ACTS - sells athletic apparel; removing it would change the video's topic) Alo (ACTS - sells athletic apparel; removing it would change the video's topic) Vuori (ACTS - sells athletic apparel; removing it would change the video's topic) In-N-Out Burger (ACTS - sells fast food; removing it would change the video's topic)

On-screen text

Dad Built Nike Is Being Dropped From The S&P 100 After Falling Nearly 80% From Its Peak Nike To Leave The S&P 100 After 18 Years September 16th, 2020 | 2 min read FROM ITS PEAK JUST A YEAR AGO OR AND I WAS TELLING MINDI ABOUT THIS EVEN BEFORE I SAW I GO YOU KNOW NIKE AND MCDONALD'S SAME LIKE THEY BOTH HAVE SO MUCH BRAND EQUITY FROM THE LAST 50+ YEARS OR WHATEVER THE NUMBER IS THAT THEY'VE JUST BEEN RIDING BRAND BUT THEIR PRODUCT IS LIKE TRASH THERE'S COMPETITORS OBJECTIVELY SUPERIOR YES RIGHT IN-N-OUT'S CHEAPER THAN MCDONALD'S AND IT'S BETTER AND THEN YOU HAVE NIKE NOW THEIR PRODUCT SUCKS THEIR STUFF IS NOT THAN LULULEMON OR ALO OR VUORI OR ANY OF THESE BRANDS DESTROY NIKE'S QUALITY CLOSE NIKE SELLING COTTON T SHIRTS FOR $60 THIS IS WHY THEIR STOCK IS IS SO BECAUSE THEY'RE BASICALLY RIDING THAT HAS BEEN THE NO. 1 BRAND IN FOR 50 SOMETHING YEARS NEW COMPETITORS HAVE COME OUT INNOVATED THEM PUT OUT BETTER PRODUCTS BRANDS THAT ARE BETTER IN TERMS OF LIKE COMFORT AND PERFORMANCE YEAH ALL THESE THINGS BASICALLY NIKE BECAME A DISCOUNT BRAND AT MARSHALLS AND ALL THIS CRAP DISCOUNT EVERYTHING THAT'S WHAT IT'S WORTH WHAT THEIR STUFF IS THESE DAYS AND IT'S LIKE YOU CAN ONLY LEAN ON YOUR BRAND SO LONG YOUR QUALITY AND REPUTATION CATCHES UP TO YOU INNOVATES YOU

Transcript

Nike is being dropped from the S&P 100 after falling nearly 80% from its peak. Nike to leave the S&P 100 after 18 years. From its peak just a year ago or and I was telling Mindy about this even before I saw. I go, you know, Nike and McDonald's, same. Like they both have so much brand equity from the last 50 plus years or whatever the number is. That they've just been riding brand. But their product is like trash. There's competitors objectively superior. Yes, right. In-N-Out's cheaper than McDonald's and it's better. And then you have Nike. Now their product sucks. Their stuff is not than Lululemon or Alo or Vuori or any of these brands. Destroy Nike's quality. Close. Nike selling cotton t-shirts for $60. This is why their stock is is so because they're basically riding that has been the no. 1 brand in sports and everything for 50 something years. New competitors have come out innovated them, put out better products. Brands that are better in terms of like comfort and performance. Yeah, all these things. Basically Nike became a discount brand at Marshalls and all this crap. Discount everything. That's what it's worth. What their stuff is these days. And it's like you can only lean on your brand so long. Your quality and reputation catches up to you. Innovates you.