On March 23rd, in the North District of Sanlitun Taikoo Li, Beijing, Nike‘s Jordan Brand opened its fourth global and first Chinese World of Flight store. This marks the brand’s newest flagship store concept and Jordan Brand’s first directly operated store in the Chinese market.
Located on the top floor, the store is currently launching the brand’s first non-collaborative luxury fashion series globally – the Jordan Wings Collection. All products are made in Italy, with some priced between 6,000 and 10,000 RMB, requiring customers to queue or make an appointment to enter.
As the greatest player in NBA history, Michael Jordan’s top-tier IP status is undeniable. Since Nike “branded” his personal IP in 1984, Jordan’s commercial value has continued to expand. According to Nike’s annual report, sales revenue for the Jordan Brand grew from $1.94 billion in the fiscal year 2014 to $5.12 billion in the fiscal year 2023, contributing one-tenth of Nike’s sales.
The Jordan brand also carries more of Nike’s expectations – “The Jordan brand can have a larger scale of business and potential for development in the future,” emphasized John Donahoe, Nike’s President and CEO, at an analyst meeting. He noted that one of the two key areas where the company needs to increase investment to achieve higher growth in the future is the Jordan brand.
Clearly, Nike is striving to position the Jordan brand more upscale. The launch of this first luxury series has significant implications for other sports brands and the industry:
- With Michael Jordan’s IP effect becoming “quieter,” is the launch of this luxury series too late, or just in time?
- Will the Jordan brand’s luxury series refresh the new generation of consumers, or will it be confusing?
- Before moving to a higher-end positioning, what groundwork and attempts has Nike made for the Jordan brand?
How did the first luxury collection sell for over 10,000+RMB?
At the entrance to the fourth floor of the Sanlitun store, customers need to queue to enter. Next to it, a photo wall not too large displays moments of Jordan playing basketball and his origins with Nike, such as his photo signing with Nike on site.
Photo of Michael Jordan signing on-site with Nike
Displayed next to the photo wall are six sneakers Jordan wore when he won the NBA championships:
Air Jordan VI (1991), Air Jordan VII (1992), Air Jordan VIII (1993), Air Jordan XI (1996), Air Jordan XII (1997), and Air Jordan XIV (1998).
The pricing of the Jordan Wings Collection luxury series mainly ranges from 4,000 to 10,000 RMB, including a calf leather bag priced at 12,800 RMB and a baseball jacket priced at 10,800 RMB. According to the staff, the white version of this jacket (about 10 pieces) sold out on the opening day.
From left to right in the photo: The baseball jacket priced at 10,800 RMB, and the calf leather bag priced at 12,800 RMB.
Price comparison of the Jordan Wings Collection luxury series with non-luxury and collaborative Jordan series (Prices in RMB) In descending order, shoes, outerwear, shirts, shorts, T-shirts, bags
The high pricing of the luxury series is attributed to four major elements by Luxeplace.com: Made in Italy, enhanced fashion accessories, limited releases, and store location and presentation.
In terms of product mix, the series includes not only men’s and women’s shoes but also fashion accessories like bags, rings, keychains, card holders, and scarves, made from premium materials such as lambskin, calf leather, wool or cashmere blend, and silk.
The strongest category for the brand – footwear, introduced four models, high and low-top AIR JORDAN 1 ’85, each limited production with a unique number. As revealed by the staff, the low-top white AIR JORDAN 1 ’85 has sold out.
The sold out low-top white AIR JORDAN 1 ’85
The series features Italian full-grain leather for the shoe upper, with one model also incorporating Italian fur leather. The interior uses high-quality satin material. Additionally, the leather edges of two models were hand-colored by Italian craftsmen.
Creating products “Made in Italy” is not new for Nike, which launched its most expensive series to date in 2020: Every Stitch Considered, emphasizing Italian manufacturing and craftsmanship by applying high-end clothing concepts and skills to sportswear.
The Jordan Wings Collection is presented on the fourth floor of the World of Flight store in Beijing. Initially, the store was not open directly to the public; customers had to book a day in advance via the “Nike Event Experience” mini-program, a strategy that not only heightened customer interest but also highlighted the product’s scarcity.
Similar to luxury brands, the staff provides one-on-one customer service, offering detailed product introductions. The center of the space features leather sofas and wooden coffee tables for customers to try on products and rest, providing a comfortable shopping environment.
How to Extract and Utilize the Jordan Brand Archive?
Michael Jordan, a living legend in basketball, has seen his legend transform into the core of the Jordan Brand’s archive over 40 years. The challenge lies in extracting and utilizing these archives under a luxury positioning that diverges from traditional sports.
The design language of the luxury series retains the brand’s classic black, red, and white colors while abstracting and extending Michael Jordan’s image to include elements of Flight, Wing, and basketball nets.
For example, a buttoned sweater designed to accurately replicate a basketball net took Italian craftsmen seven hours to sew.
Another example is the classic wing logo designed by Jordan’s first creative director, Peter Moore, serving as a core element displayed on the front, back, or sleeves of clothing. Some bags are designed with contours inspired by the shape of wings.
Peter Moore, the brand’s first creative director, not only designed the game-changing Air Jordan 1 but also led the development of Nike Dunk.
In the early 90s, Peter Moore left Nike for Adidas, later becoming the President and CEO of Adidas America and continuing as creative director. He designed the iconic Adidas three stripes logo and spearheaded creative planning and design for Adidas’s series of running shoes, solidifying Adidas’s position as a sports giant.
Jordan Brand Upgrades to “Luxury”: What Groundwork Has Nike Laid?
1. “Peak Retail Concept” First Store, Not in the US, but in Italy
At the end of 2022, the Jordan Brand opened its first new retail store, World of Flight, in Milan.
Nike describes this as the “peak retail concept” for the Jordan Brand, calling the store “the future of Jordan retail—a destination celebrating the heritage and future of basketball culture.”
The store’s location is carefully chosen on Via Torino, a popular retail destination in Milan close to the iconic Milan Cathedral, surrounded by numerous luxury brands.
While North America is the “home base” for Nike and the Jordan Brand, opening the first store in Milan, a city representing world fashion and design, is a significant groundwork for further upscale positioning of the Jordan Brand.
Following Milan, Jordan Brand stores were also opened in Tokyo and Seoul, with the Tokyo store located in Shibuya, a bustling area known for major trendy brands, and the Seoul store in Hongdae, a major gathering place for young Koreans.
Nike has always been adept at opening “creative” stores, as reported by Luxeplace.com, including various formats like Nike Live Retail Store: Uses online sales data to automatically identify products favored by consumers in the vicinity; Nike Unite Retail Store: Primarily serves the surrounding community, featuring locally planned, cost-effective, and seasonal products; Nike Rise Retail Concept Store: Emphasizes a digital experience and services for local sports communities; Nike Style Retail Concept Store: Focuses on “gender-neutral” and “digital physical space.”
2. Collaborations with Luxury Brands and Renowned Artists
In 2015, Jordan released the Air Jordan 1 “Pinnacle,” a luxury custom version priced at up to $400. The two pairs of sneakers were crafted from high-quality leather with white stingray and black snakeskin patterns, respectively, and featured 24K gold-plated tongue tags. These sneakers were sold at a limited number of brand retail stores, controlling the scarcity and collectible nature of the product, while maintaining the brand’s popularity in the market.
In 2017, the Jordan brand released its first collaboration with the renowned artist Kaws – the Air Jordan 4 x Kaws, priced at 2499 yuan. This shoe underwent significant design changes, abandoning the traditional plastic eyelets of the Air Jordan 4 in favor of high-quality grey suede for the entire upper. That year, Kaws didn’t have many collaboration products, making this partnership a hot topic in the sneaker community.
In 2020, the Jordan brand collaborated with the French luxury brand Dior to release the “Air Dior” luxury sneakers. The high-top Air Jordan 1 High OG Dior was priced at 18,000 yuan (overseas price $2200), and the low-top version was 16,000 RMB (overseas price $2000).
Due to limited sales, these collaboration sneakers were resold in the secondary market for more than three times their original price, becoming one of the year’s most sought-after collaborations. This also tested and increased Jordan’s influence among high-end consumers.
Additionally, at the end of 2020, Jordan Brand introduced the Air Jordan XI Adapt, priced at 2899 RMB. This shoe cleverly combined electronic lacing technology with classic sneaker design, marking the first product in the Air Jordan series to use self-lacing technology.
After several initial tests, the Jordan brand launched the more complete, high-priced, and high-craftsmanship luxury product line Jordan Wings Collection, indicating the brand’s strategy to further upgrade its high-end positioning and capture a larger share of the high-end market.
3. The Return of a Former Design Director
Last year, Nike announced the return of Jason Mayden, after a decade away from the brand, to serve as the Chief Design Officer for the Jordan brand.
His deep roots with the brand began in 2001 when he first joined Nike and became one of the first design interns for the Jordan brand. Over 13 years, he rose to the position of Global Design Director for the Jordan Brand, participating in many significant projects, including leading the design of Air Jordan 2009 and Air Jordan 24, and designing products for NBA stars Carmelo Anthony, Chris Paul, and Russell Westbrook.
More interestingly, after leaving the brand, Mayden ventured into children’s wear and the trendsetting field:
In 2016, he founded the children’s footwear brand Super Heroic; in 2017, he established the design company Trillicon Valley; by 2020, he became the president of Fear of God Athletics, a brand launched by the streetwear label Fear of God and the German sportswear giant Adidas. While working at Fear of God Athletics, Jason Mayden was primarily responsible for establishing the brand’s independence and developing a diverse product matrix.
Jason Mayden’s entrepreneurial experience in children’s footwear, his design work in the streetwear brand, and his rich experience working with competing brands, coupled with his understanding of the Jordan brand, are undoubtedly key reasons why Nike chose to bring him back.
How Does Nike Sustain High Growth for the Jordan Brand?
If the luxury series on the fourth floor of the World of Flight Beijing store represents an attempt to enhance the Jordan brand’s influence and upscale branding, then floors 1-3 signify that the Jordan brand’s business scale has reached a new level.
The Jordan brand thrives not only due to Michael Jordan’s personal IP impact but also benefits from Nike’s professional management and the strong resonance formed by the global popularity of NBA and basketball culture in earlier years.
Every basketball star has an era-defining impact. Those born in the ’70s, ’80s, and some in the ’90s grew up watching Jordan win championships and witnessed the Bulls dynasty, creating a strong sense of identity and resonance with the Jordan brand.
Today, the challenge Nike faces is how to maintain strong resonance with and encourage purchases from the general public and younger generations towards the Jordan brand.
Although the legendary Air Jordan sneakers have reached their 38th iteration, today’s consumers find it increasingly difficult to follow the “nostalgic” brand logic of loving Michael Jordan → buying Air Jordan sneakers → becoming a Jordan brand fan.
Beyond basketball, the Jordan brand has already ventured into baseball, American football, boxing, skateboarding, running, soccer, and even racing.
It has also collaborated with well-known designer brands and artists, such as Virgil Abloh’s Off-White, Kaws, American rapper Travis Scott, and more.
The third floor of the World of Flight Beijing store displays collaborations with Chinese illustrator Xiao Ye Billi and Paris Saint-Germain Football Club.
Additionally, the brand continues to increase its focus on women’s and children’s lines.
In 2015, the Jordan brand announced its intention to target the female market more aggressively. Before this, Nike’s official Jordan page only had options for “men” and “children,” with women’s products limited to socks, hats, and backpacks.
That year, Jordan began mass-producing women’s basketball shoes with designs and elegant colors that appeal to female aesthetics.
In 2020, the Jordan brand launched its first women’s apparel series, featuring bold flight suit sets that combine contemporary street style with a range of cutting-edge designs, including jumpsuits.
Beyond expanding product lines, Jordan has actively collaborated with female athletes. In 2019, Jordan signed Kia Nurse and Asia Durr from the New York Liberty, following the 2011 endorsement deal with the brand’s first female basketball athlete, Maya Moore. In 2021, Jordan signed its first female athlete from China and Asia, Yang Shuyu, who also participates in the Jordan brand’s “Wings” community program outside of her sports career.
Currently, the brand’s official website offers a complete range of women’s products, including apparel, footwear, and bags, catering to various scenarios like running, yoga, basketball, soccer, and fitness. The children’s line is also meticulously segmented into baby, toddler, and youth sizes for both boys and girls, including accessories.
The brand’s financial results for the third quarter of the fiscal year 2024 show a double-digit year-over-year increase in children’s wear sales.
As of the second quarter of the fiscal year 2024, Jordan is becoming the second-largest footwear brand in North America, just behind Nike. The brand’s high-performance products are growing faster than the company’s overall growth rate; its apparel business generates about $1 billion in annual sales, with a compound annual growth rate of nearly 20% over the past three years.
Conclusion
In the World of Flight Beijing store, detailed introductions about Michael Jordan himself occupy a very small proportion, but this approach may be a welcoming gesture, inviting consumers who are unfamiliar with Jordan to step inside.
Creating a brand is challenging, but keeping it alive is even more difficult, especially for a brand based on an athlete’s IP. The greatest test for the Jordan brand looking forward is how it can continue to be remembered and loved by consumers, and even maintain growth, with its brand image over the long term.
How today’s Chinese sports brands operate athlete IPs offers lessons as well. For example, Anta signed Kyrie Irving and recently released the first signature sneaker ANTA KAI 1; Li-Ning collaborated with Dwyane Wade to create the “Way of Wade,” and Under Armour built the “Curry Brand” with Stephen Curry.
Since Jordan’s brand entry into the Chinese market in 1997, it has expanded its sales channels to major first and second-tier cities in China, such as Beijing, Shanghai, Guangzhou, Chengdu, Hangzhou, Nanjing, Shenyang, Xiamen, Ningbo, Xi’an, Changsha, Shijiazhuang, Qingdao, etc. Whether this flagship store can create a sensation is closely related to the brand’s image in the minds of Chinese consumers, especially in today’s highly competitive sports market in China, thus its ultimate effectiveness remains to be seen.
When Michael Jordan’s IP becomes a quiet legend, how can the brand balance its business and brand power?
When other sports brands also launch upscale series through trends/designs, will the younger generation remember the Jordan brand for being more upscale?
From left to right in the image: Jordan’s first non-collaborative luxury series, the Jordan Wings Collection, baseball jacket priced at 10,800 RMB; Adidas collaborated with Japanese designer Yohji Yamamoto to create the brand Y-3, jacket priced at 10,900 RMB; Li-Ning’s independent high-end sports fashion brand, LI-NING 1990, limited edition collaboration with Moose Knuckles, down jacket priced at 10,990 RMB.
On the same day as the opening of the new store, in Sanlitun Taikoo Li, the Chinese sports brand Anta opened a new retail store in the south area of Taikoo Li — ANTA SNEAKERVERSE Anta Works Collection White Label flagship store, and exclusively sold 323 pairs of Anta Kyrie 1 ‘SV’ colorway sneakers on site, which, according to the staff, sold out on the opening day.
Note: At time of writing, 1 RMB = 0.14 USD
| Photo source: Luxeplace.com On-site Photography, official brand channels
丨Reporter：You Jia
| Editor: Elisa
