Jordan Brand Signs Luka Dončić Not for North America but for EMEA

The second-year player caps a year full of exciting new talent joining the Jordan Brand.

Source: Jordan Brand Luka Dončić

Luka has been rocking a variety of kicks this season and ESPN has been covering his sneaker free agency in detail. It makes sense as Luka is another player in a long line of great White hopes in a world dominated by African-American players. The 18-19 Rookie of the Year is easily one of the best players in the League only one year in. He’s accomplished things in the short time that he’s been playing in the NBA that only one other player has done through 16 games. His 30-10 and 9 average is comparable to only Oscar Robertson. If this was the 90s, Luka’s signing would be extremely important for Nike here at home.

In today’s atmosphere where ESPN2 ran a Tetris Tournament during prime time on a Friday night during NCAA Football Bowl season, Luka’s signing is more important to Nike’s continued growth in EMEA (Europe, Middle East & Africa). From 2018 Q1 to 2019 Q1, in EMEA, Nike grew 13% taking considerable share away from adidas in the European marketplace. This growth takes place at the same time that Greater China grew 27%. In both of these markets the NBA is a powerful driver of youth culture. The same love of the NBA that drove the first signature footwear era of the 90s that saw Nike become the power that it is in sportswear, is taking place in the international market. Here in North America Nike basically remained flat at 4% growth in footwear and an even smaller margin in apparel.

Here are a few items of interest that should be considered when looking at Luka and Jordan Brand. There are only 3 signature athletes for Jordan Brand. Really only two: Chris Paul and Russell Westbrook. Carmelo Anthony was a signature athlete, but has been relegated to player exclusives. Chris Paul hardly sells any footwear here in the U.S. and barely has any shelf space. Russell Westbrook’s “Why Not” line does have shelf space, but is often readily available in Nike Clearance and Factory stores after being RTV’d from wholesale accounts. This relationship will be similar to Blake Griffin. I wouldn’t expect a signature shoe. He will have some incredible PEs.

There has never been a White signature shoe athlete. Larry Bird and Magic shared the Converse Weapon, but outside of Bird there hasn’t been a signature athlete in the NBA who was of European background. That isn’t exactly true. Kevin Love was a signature athlete for 361 and Jimmer Fridette tookover for Kevin Love when Love became a Nike athlete again. Fridette also represented Spalding at one point.Gordon Hayward is signed to Anta as a signature athlete.

All of this doesn’t mean that Luka isn’t important. One look at the athletes Jordan Brand has added hints at where Jordan Brand knows it can show growth:

Rui Hachimura (Japanese Heritage) playing in the G-League as a member of the Washington Wizards (APLA grew 17%)

Guo Ailun (Chinese Heritage) the first Chinese League player to represent Jordan Brand

and now Luka who is from Slovenia.

Europe and Asia are growth areas and it’s important that Nike and Jordan Brand remains in position to expand their CDO into these territories since DTC is an easier option for the brand internationally than it is in North America. Companies like JD Sports and Foot Locker are expanding, but Nike can easily launch its own doors in the international market. Nike’s doors and digital are becoming much more important as signature footwear sales are down across the board in the U.S. and to make up for the lack of growth in North America Nike has to give much more consideration to the international market. I make it a point to always state that general release resale is an indicator of brand heat. Nike and Jordan Brand drives the majority of resale. If I take a quick glance at my sales from 12/20/2019 to 12/23/2019, there is only one signature sneaker that shows up in those few days and that’s the Kyrie Denim and Spongebob (which was not a big GR release). Luka won’t drive sales in North America. His signing isn’t to fire up the masses at home. Not even LeBron James, KD, or Kyrie are capable of getting the U.S. excited about hoops sneakers. This is a smart international play by Jordan Brand that signals trouble for adidas on its home turf and forces Under Armour back to the drawing board in the international market considering Luka was wearing either Nike/Jordan Brand or Under Armour Curry 7s throughout his free agency and had some record breaking games in the Curry 7 Sour Patch. 12/20 to 12/23 sales below: