Sizing Up Year No. 1 - NFL Jerseys
How important is Nike's handle the NFL?
Put it using this method, when CNBC met with them during Super Bowl week inside New Orleans, the company's chief designer Todd Van Horne had some Nike American footbal products under lock and key in the steel briefcase.
There is a lot on the line.
Last year, Nike paid $1.1 billion dollars to clothe the National football league for the next five years. If it goes well, some analysts estimate it could mean half any billion in revenue per of those five years.
"It has done exceptionally well so far," explained Sam Poser, who covers Nike pertaining to Sterne Agee.
However, the first year hasn't been without hiccups.
Take the John Griffin III craze. His Wa Redskins jersey sold better than every other in history, but Poser said Nike were required to scramble to respond to demand and probably left a fair amount of sales on the table.
"But those are things they learn from," he was quoted saying. "That won't happen again.In .
What you learn from talking to the business and the analysts who get it is that it's a process.
For example, by league rules, squads can only change designs when every five years. So, Nike should sell into the whole marketplace right away but can't style everything they might want to without delay.
And as they design the jerseys on the field and try to promote them to the consumer, Nike also has to start the design process with each team in the league.
"We work directly with teams along with ownership in terms of how they need to present themselves: on their field, his or her colors, their branding,Inches said Van Horne, who has been with Nike for 22 a long time. "We work hand in hand with them in that course of action."
At first glance, it all appears like it should be linear?aclothe the players, sell it in shops. But it's not.
The players need the best possible equipment and apparel. Consumers want cool points they can afford. That's why Nike may differ the prices points. For cycling tops, the closest to the real thing will set you back over $300. But you can also get established jerseys for less than half the time.
"The players, they're the very heroes," Van Horne stated. "They're the people that people idolize and would like to look like.
"We do bring that exact product for our list offering that everyday enthusiasts can buy."
Next up: the particular sidelines.
"The jackets," Vehicle Horne referenced as something to appear forward to in 2013. "What players are wearing, warming up in?ajust their own full range of what they do during the day.
"We just got here. We've made great strides, and we've got a long way to visit."
Put it using this method, when CNBC met with them during Super Bowl week inside New Orleans, the company's chief designer Todd Van Horne had some Nike American footbal products under lock and key in the steel briefcase.
There is a lot on the line.
Last year, Nike paid $1.1 billion dollars to clothe the National football league for the next five years. If it goes well, some analysts estimate it could mean half any billion in revenue per of those five years.
"It has done exceptionally well so far," explained Sam Poser, who covers Nike pertaining to Sterne Agee.
However, the first year hasn't been without hiccups.
Take the John Griffin III craze. His Wa Redskins jersey sold better than every other in history, but Poser said Nike were required to scramble to respond to demand and probably left a fair amount of sales on the table.
"But those are things they learn from," he was quoted saying. "That won't happen again.In .
What you learn from talking to the business and the analysts who get it is that it's a process.
For example, by league rules, squads can only change designs when every five years. So, Nike should sell into the whole marketplace right away but can't style everything they might want to without delay.
And as they design the jerseys on the field and try to promote them to the consumer, Nike also has to start the design process with each team in the league.
"We work directly with teams along with ownership in terms of how they need to present themselves: on their field, his or her colors, their branding,Inches said Van Horne, who has been with Nike for 22 a long time. "We work hand in hand with them in that course of action."
At first glance, it all appears like it should be linear?aclothe the players, sell it in shops. But it's not.
The players need the best possible equipment and apparel. Consumers want cool points they can afford. That's why Nike may differ the prices points. For cycling tops, the closest to the real thing will set you back over $300. But you can also get established jerseys for less than half the time.
"The players, they're the very heroes," Van Horne stated. "They're the people that people idolize and would like to look like.
"We do bring that exact product for our list offering that everyday enthusiasts can buy."
Next up: the particular sidelines.
"The jackets," Vehicle Horne referenced as something to appear forward to in 2013. "What players are wearing, warming up in?ajust their own full range of what they do during the day.
"We just got here. We've made great strides, and we've got a long way to visit."