Neil Saunders put his finger on what may be Nike's biggest problem
By Mikeblack · September 3, 2026 · Curated by George's Blog
Neil Saunders put his finger on what may be Nike's biggest problem
Cultural relevance / resonance
Few can match Nike's brand awareness, distribution and product innovation, but in an increasingly competitive and fragmented footwear market, scale no longer creates cultural authority
Challenger brands are gaining popularity by connecting with younger communities defined by specific lifestyles and aesthetics
In Fortune’s recent piece on Nike’s turnaround, Saunders (a retail analyst at GlobalData Retail), says: “Nike has lost its edge.”
Specifically, he notes that Nike is no longer a brand that knows what it stands for and that Air Jordan's don't have the same inherent cultural meaning for Gen Z because younger consumers didn't experience Michael Jordan as a contemporary cultural figure
Collage Group's latest Gen Z footwear analysis confirms a lot of his points.
The good news for Nike:
Currently, Nike has the the strongest cultural resonance with Gen Z amongst footwear brands we studied, beating Adidas by 6 points. And they grew that resonance by 1 ppt over the past 18 months, which translates to a 0.79% increase in purchase intent. That's significant given the scale of their reach and awareness
The not so good news:
Adidas, Hoka, On and ASICS grew their Gen Z cultural resonance faster over that same time period
The more concerning news:
In the past 18 months, Air Jordan has not increased its cultural resonance with Gen Z at all, which puts it in a precarious middling position
As the Fortune article notes, Nike's cultural resonance problem is not just generational, either
Nike's brand identity still skews heavily male, while brands like Lululemon and Alo have built their identities around female consumers who want fashion, versatility and products beyond the gym
My point is not to dump on Nike (I personally love their brand), but to call out a very familiar problem I see affecting many large, legacy brands
I call it the "What got you here, won't get you there problem."
Scale can only get you so far. Cultural resonance is the new currency for competitive advantage, which many challenger brands have figured out and do well
If big brands can combine their inherent scale advantage with cultural resonance, that's almost unbeatable
I recommend reading the Fortune article by Ruth Umoh in full. Fascinating case study on the challenges of brand turnarounds