There are few brands that have shaped American culture the way Nike has, from the iconic Swoosh to the three words that have inspired generations: Just Do It.

Along the way, it has influenced fashion, athletics, marketing, and even how people think about themselves as athletes.

But increased competition from brands like HOKA, On, and New Balance and a turbulent few years under previous leadership begs the question:

Does Nike still have its magic?

Retail industry analyst Matt Powell believes the answer is yes.

Nike's Real Superpower Isn't Shoes

When people think about Nike, they usually think about great products or legendary athletes.

Powell argues the company's greatest strength has always been something deeper: understanding culture.

"Nike has always known exactly who its customer is," he explained.

That consumer-first mindset has guided some of the company's boldest—and occasionally most controversial—marketing decisions. Powell points to Nike's support of Colin Kaepernick as one example. While the campaign sparked backlash in some circles, it resonated with Nike's core audience.

The lesson wasn't simply about taking a stand.It was about knowing exactly who the brand was speaking to. That's something Nike has consistently done better than almost anyone.

The Billion-Dollar Brand Built on Scarcity

Micheal Jordan arrived just as the NBA was becoming a personality-driven league. ESPN was introducing fans to players across the country, television exposure was exploding, and basketball was becoming mainstream entertainment. When Nike signed the young rookie in 1984 nobody, not even the brand itself, could have predicted what would happen next. 

The timing couldn't have been better. Jordan didn't just become the face of Nike. He became one of the greatest merchandising success stories in business history. One of Powell's favorite stories illustrates just how intentionally Nike built the Jordan phenomenon.

When Nike decided to re-release the original Air Jordan 1 in the early 2000s, retailers were eager to stock up. Foot Locker reportedly wanted tens of thousands of pairs. Nike refused.

Instead, the company deliberately limited production. With shoes selling out almost as soon as they hit the shelves, it was suddenly not just about owning a pair of sneakers but finding them. 

Scarcity fueled demand and consumers lined up overnight, with shoes disappearing from shelves within hours as stories spread about collectors paying premiums just to get their hands on a pair. Then platforms like StockX and GOAT transformed sneaker collecting into a true resale marketplace, making rare sneakers even more valuable.

Today, the Jordan brand generates billions of dollars annually. At its core, Powell says, that success was built on one simple idea:

Make the product difficult to get.

A Shift in the Brand

For all of Nike's strengths, Powell believes recent struggles were largely self-inflicted.

Under former CEO John Donahoe, Nike aggressively shifted toward a direct-to-consumer strategy, prioritizing digital sales while pulling back from wholesale partners. A heavy investment in e-commerce, institutional knowledge diluted through repeated layoffs, and a shift away from the limited production tactics that had Jordans flying off the shelves diminished the brand’s reputation for exclusivity. 

For a company whose biggest franchises thrived on scarcity, that represented a fundamental shift.

Why Powell Believes Nike Is Coming Back

Despite those challenges, Powell remains optimistic. The return of longtime Nike executive Elliott Hill, combined with renewed focus on product development and stronger retail partnerships, signals a course correction.

The recovery won't happen overnight, but Powell doesn't believe Nike's position as the world's leading sportswear company is in jeopardy.

"They're going to remain number one," he says.

Lessons Every Business Can Learn

Nike's story isn't just about sneakers. It's about building an enduring brand. According to Powell, two lessons stand above the rest.

1. Great marketing can never replace a great product. 

"The best product in the world can sell itself," he says. "The greatest marketing campaign, if the product isn't there, is wasted money."

2. Businesses must understand their customers better than anyone else.

Know who they are. Know what they value. Speak directly to them. Nike has stumbled at times, but throughout its history its greatest successes have come from staying relentlessly connected to the people it serves.

While products evolve and competitors come and go, the fundamentals that built Nike remain remarkably consistent: innovation, storytelling, cultural relevance, and an unwavering understanding of the athlete.

Or, as Nike has reminded us for nearly four decades:

Just do it.