Hey everyone. I know that this blog is all about finding the right shoes for the right sport/occasion, but I thought that I should cover this topic because mindset and marketing is a HUGE reason why many people buy certain types of shoes. In fact, some might even argue that that’s the BIGGEST reason people buy shoes.
Have you ever thought about why companies like Nike pay celebrities MILLIONS of dollars for sponsorship deals? One of the biggest examples of this is Lebron James’ business deal with Nike. It was made public recently by Lebron James’ business partner that their lifetime deal with Nike is worth over $1 billion! Can you imagine that? Nike is willing to pay Lebron James and his associates $1 billion to represent their company! It still literally boggles my mind about how much money they’re willing to pay someone.
If you stop and think for a second about why Nike would pay a celebrity so much money, it starts to make logical sense (although the figure of $1 billion still seems ridiculously astronomical). It’s all about marketing. It’s all about branding. It’s all about bringing in sales and making money. The only reason a company, whether it’s Nike, Reebok, Adidas, or any other company on the market, will pay money to celebrities to wear their product is so that they can make more money. The idea is to invest money into an individual, so that they can make that money back and then some.
The concept of branding and marketing is certainly an interesting one. On the exterior it can seem pretty risky. Will the company actually make its money back? What happens if the celebrity represents a company but ends up making some poor choices which then reflects back upon the company’s products? I’m sure there are quite a few risks when it comes to sponsoring celebrities, but there are definitely some huge rewards to be gained. Nike is a $30+ billion company and I’m sure that they wouldn’t pay Lebron James $1 billion if they weren’t going to make that money back.
The reason Nike would pay Lebron so much money is because they know that branding works! If Lebron James wears Nike, there’s a high probability that more people will wear Nike. Lebron is an extremely popular celebrity and millions of people around the world watch him on TV whenever he plays. Regardless of how much an NBA fan loves Lebron, they will be exposed to what Lebron wears. Just by attaching its product to a celebrity, Nike is instantly creating more awareness about its product. It’s engraving itself into the memory of viewers around the world and also establishing trust.
Whether we like it or not, we’re forming a more positive image of a company whenever we see it attached to a celebrity. Consciously, or subconsciously, we start developing a mindset along the lines of, “if this celebrity is wearing this brand, then this brand has got to be legitimate.” The hands of marketing are constantly playing with our mentality and it’s working like crazy! This concept not only applies to shoes, but it literally crawls its way into every industry whether it’s through the latest D-Bal review, the hottest underwear commercial, or a Saturday night UFC fight.
I would argue that many people buy shoes based on the curiosity and trust that’s instilled in them through marketing. Sometimes it’s not even the trust or the curiosity, but just a method to support a beloved celebrity. Some people are such huge fans of a certain celebrity that they’re willing to buy their products to support them. The concept of celebrity branding is certainly a very interesting one that continues to stand the test of time.
What do you think? Do you think celebrity branding works and will continue to work? Have you ever bought something because of celebrity marketing?