Survey Sees Nike, Jordan, Lululemon Winning Popularity Contest with Gen Y + Z

While upstarts such as Hoka and On are making noise, Cowen’s sixth annual Gen Z and Millennial survey found Nike, Air Jordan and Lululemon hit new all-time highs in brand preference and showed material growth year-over-year in both 18-to-24 and 25-to-34-year-old cohorts.

In the case of Nike and Air Jordan, the brands expanded to new highs across both Gen Z and Millennials in key footwear and apparel categories. Nike’s biggest year-over-year gains occurred in casual footwear, up 27 percent year-over-year among 24–to-35-year-olds; athletic footwear was up 23 percent year-over-year among 25-to-34-year-olds; casual lifestyle apparel climbed 20 percent year-over-year among Gen Z and Millennials; and athletic performance apparel, advanced 23 percent year-over-year among 25–to-34-year-olds.

In brand preference in athletic apparel, Air Jordan jumped 32 percent year-over-year among 18-to-24-year-olds to second place at 15 percent brand preference, behind Nike at 45 percent. Air Jordan’s preference sits over 50 percent above Adidas in terms of brand preference among this cohort.

Cowen’s survey found that the rise of disruptive growth companies continues within the athletic space. Hoka’s brand preference in athletic footwear surged 50 percent year-over-year to 3 percent of the 18–to-24-year-old cohort. On grew 40 percent year-over-year among 18–to-24-year-olds to 1.4 percent brand preference.

Among retailers, Dick’s expanded to a 27 percent preference share in Sporting Goods shopping preference among 18–to-24-year-olds from 21 percent in 2021 and 21 percent preference among 25–to-34-year-olds from 17 percent in 2021. Dick’s was at or reached a new high for Sporting Goods in 2023, above second place Amazon and Wal-Mart among 18–to-24-year-olds and narrowed the gap among first place Amazon among 25–to-34-year-olds. Academy Sports preference share expanded 22 percent year-over-year among 18–to-24-year-olds in 2023 and commands an 8 percent shopping preference, a new high for the chain. Regarding year-over-year growth among the broader 18–to-34-year-olds, Dick’s preference share grew 3 percent, and Academy Sports jumped 36 percent.

Nike And Lululemon Lead Athletic Apparel Preference
When shopping for athletic performance apparel, brand preference winners for 18–to-24-year-olds include Nike with a 52 percent share, outpacing the next highest brand preference, Adidas, at 14 percent. Nike’s athletic apparel brand preference share has been rising over the course of Cowen’s six surveys and increased year-over-year sequentially from 2021 through 2023. Among older cohorts, Nike’s athletic apparel preference share among 25–to-34-year-olds rose to 48 percent in 2023 from 45 percent in 2017 and increased among 35–to-44-year-olds to 43 percent in 2023 from 39 percent in 2017.

Lululemon was a notable winner off a low base with 18–to-24-year-olds in athletic apparel preference, climbing from 3 percent preference share in 2017 to a 7 percent share in 2023. Among 25–to-34-year-olds, Lululemon’s athletic apparel preference share more than doubled from 3 percent in 2017 to 8 percent by 2023, while preference share increased to 6 percent in 2023 from 2 percent in 2017 for 35–to-44-year-olds.

Among brands losing ground in athletic apparel preference, Adidas moved from 17 percent in 2017 with 18–to-24-year-olds to a peak of 23 percent in 2020 before easing to 14 percent by 2023. Under Armour’s athletic apparel preference share among 18–to-24-year-olds moved from 12 percent in the 2017 survey to 7 percent by 2023, despite a bump up to 11 percent in 2022. Among 25–to-34-year-olds, athletic apparel brand preference share for Under Armour decreased to 11 percent in 2023 from 16 percent in 2017 and declined to 15 percent in 2023 from 20 percent in 2017 for 35–to-44-year-olds.

Cowen noted that both of brands hited new CEOs in 2023—Bjørn Gulden at Adidas and Stephanie Linnartz at Under Armour—and have taken steps to regain sustainable brand heat.

Nike Continues to Dominate Athletic Footwear, Hoka And On Disrupt 
Nike continued to dominate brand preference in athletic footwear despite some pressures from emerging brands.

Among 18–to-24-year-olds, Nike’s athletic footwear preference share ranked at 45 percent in 2023, but is down from a peak of 48 percent in 2017. Among 24–to-35-year-olds, Nike’s preference share declined from 45 percent in 2017 to 36 percent in 2022 before reaccelerating to 44 percent in 2023. Among 35–to-44-year-olds, athletic footwear preference share for Nike decelerated to 36 percent in 2023 from a peak of 40 percent in 2017.

The next highest preference share for these age cohorts among the brands is the Jordan brand with a 15 percent share in 2023 for 18–to-24-year-olds, increasing from 8 percent in 2017. The preference share for the Jordan brand is ranked lower for 25–to-34-year-olds at 7 percent in 2023 and 6 percent for 35–to-44-year-olds in 2023.

Adidas fell to third among 18–to-24-year-olds, with a 10 percent athletic footwear preference share. Adidas remained second in athletic footwear preference share among older groups, including 13 percent with 25–to-34-year-olds and 14 percent share with 35–to-44-year-olds.

Hoka, which joined Cowen’s survey beginning in 2020, continues to have a small share but is “growing exponentially each year,” according to its study. Hoka increased to a 3 percent preference share in 2023, up from 1.4 percent in 2020, representing a 29 percent CAGR. Hoka reached an athletic footwear preference share of 3.7 percent in 2023 for 25–to-34-year-olds, sustaining its initial share when it entered Cowen’s survey in year one at 3.3 percent. Among 35–to-44-year-olds, Hoka held a smaller preference share of 1.6 percent in 2023.

On, which joined Cowen’s survey of athletic footwear preference in 2021, debuted with a share among 18–to-24-year-olds of 2.4 percent, which proceeded to dip to 1 percent in 2022 before increasing to 1.4 percent in 2023. The brand registered a 0.9 percent share in 2021 among 25–to-34-year-olds and has since increased to 1.4 percent by 2023 and continued to reflect a share gain among 35–to-44-year-olds, accelerating from 0.1 percent in 2021 to 0.9 percent by 2023.

Nike Dominates Casual Lifestyle Apparel, Lululemon Gains Share 
In casual lifestyle apparel, Nike was also the clear brand preference share leader for 18–to-24-year-olds, 25–to-34-year-olds, and 35–to-44-year-olds at 49 percent, 43 percent and 39 percent, respectively. Notably, Nike’s brand share significantly increased year-over-year in 2023 after a few years of flattish change with 18–to-24-year-olds and 25–to-34-year-olds.

Lululemon is also a share gainer in casual lifestyle apparel, increasing to 8 percent in 2023 from 5 percent in 2017 with 18–to-24-year-olds, rising to 7 percent in 2023 from 5 percent in 2017 for 25–to-34-year-olds, and accelerating to 7 percent in 2023 from 4 percent in 2017 for 35–to-44-year-olds. Adidas and Under Armour both lost preference share in casual lifestyle apparel with 18–to-24-year-olds. Adidas held share among 25–to-34-year-olds and 35-to-44-year-olds, but Under Armour lost share with those age cohorts.

Vans Recovers Share In Casual Lifestyle Footwear 
In casual lifestyle footwear, brand preference scores were led by Nike with a mid-30s share across 18–to-24-year-olds, 25–to-34-year-olds and 35–to-44-year-olds, though over the time series (2017-2023) of the survey, preference share was volatile. Among 18–to-24-year-olds, Nike brand preference share began at 36 percent in 2017 before easing to below 30 percent in 2019 and eventually returning to 37 percent by 2023. Among 25–to-34-year-olds, Nike’s preference share was 36 percent both in 2017 and 2023 but was volatile in the intervening years, while preference share increased to 35 percent for 35–to-44-year-olds from 31 percent in 2017.

One callout was Vans, whose casual lifestyle footwear preference share increased to 17 percent in 2023 from 14 percent in 2017 among 18–to-24-year-olds, accelerated to 10 percent in 2023 from 8 percent in 2017 among 25–to-34-year-olds, and saw an uptick to a 10 percent preference share in 2023 from 5 percent in 2017 among 35–44-year-olds. Cowen said, “This performance was both surprising and encouraging since Vans is in the early stages of a global restructuring of its go-to-market strategy and initiatives to restore brand heat.”

Ground losers in brand preference in casual lifestyle footwear included Under Armour with 18–to-24-year-olds and 25–to-34-year-olds and Skechers for 18–to-24-year-olds and 35–to-44-year-olds. Adidas’ casual lifestyle footwear preference share decreased to 9 percent in 2023 from 13 percent for 18–to-24-year-olds.

Photo courtesy Lululemon