Nike taps Sean John for new urban line

Faced with a stagnant $17 billion athletic-footwear market, Nike is trying to lift its business by launching an upscale urban fashion line. The new line will be called Blue Ribbon Sports, which was the name of the company before it became Nike.

The brand which will only be sold at high-end retailers, is reported being designed by designers from Sean “P. Diddy” Combs’ Sean John clothing company.

The "casual shoes" endorse by rap-preneurs like Jay Z, 50 Cent, Snoop Dogg, Xzibit and Missy Elliott, have emerged as the fastest growing segment of the $17 billion athletic footwear market. Casual shoe sales were up 24.5% in 2004, while basketball shoes and running shoes increased by 0.3% and 4.6% according to SGMA International. Casual shoes accounted for 51% of sales for the 12-month sales period ending in May.

Nike is now competing with hip hop brands like Phat Farm, Dada, And One, Sean John and Roc-A-Wear. While it’s major competitors Reebok and Adidas have been pushing urban themed lines, Nike has been absent from this market.

Reebok has been very successful with its “Rbx” urban line which features shoes from Jay Z and 50 Cent. Reebok's revenue increased 11% to $925 million in the first quarter of fiscal 2005. The company attributes roughly half that increase to music, entertainment or lifestyle-inspired products.