Nike has suffered two PR crises in 2019 that continue to have reverberating effects throughout the company and country even as the year draws to a close. While the two are very different in nature, they have been handled well, but not before causing some damage to Nike’s stock.
Zion Williamson’s Shoe Tearing
The first PR crisis was the result of Zion Williamson’s shoe falling off during one of the biggest and most-watched games of the year. As a global sports manufacturing brand, Nike suffered some bad publicity because of this event.
The crisis was magnified by the fact that former President Barack Obama was watching the match, and he audibly exclaimed that the shoe had broken. To make it worse, Williamson suffered a knee sprain that rendered him unable to compete for the rest of the season.
The result is that Nike could have losses of over a billion dollars.
Maternity Leave Crisis
Nike has committed itself to a marketing strategy that positions it as a socially progressive brand. Over the years, Nike has partnered with individuals who have a reputation for speaking up on social justice issues, in addition to their brilliant athletic performance.
The company’s reduction of endorsement compensation during maternity leave, however, is seen as going against this value. A torrent of complaints from both athletes and fans led to Nike facing its second PR crisis of the year.
To its credit, Nike reacted by immediately acknowledging the policy, and pledging to change it.
The event with Zion Williamson’s shoe is central to what Nike does as a global sports manufacturing brand. The statement released by the company acknowledged that there had been a problem. In line with its brand image, Nike also showed concern for Zion, wishing him a speedy recovery.
Nike was also careful to mention that this was an isolated incident. Including that worked well to avoid the public perception that there was a widespread problem with the company’s products. The company added that the performance and quality of its products are of “utmost importance” to it. That was complemented by a statement that there’s a proactive effort to identify and solve the issue, which often retains public trust.
Nike’s response to its maternity leave public crisis also helped to manage the backlash. Athletes like Phoebe Wright and Alysia Montano sharing their personal experiences with how Nike previously treated female athletes while under contract brought the issue wide press coverage. That made it imperative for Nike to give a strong response that aligns with its established image as a socially-progressive brand.
Nike’s confirmation that it has made some changes minimized the effects of the crisis. Adding that it has realized it can go even further strengthens the brand image it has been cultivating.
Nike has experienced a year with two PR crises that have had an effect on both its reputation and finances. In both cases, however, being proactive and taking responsibility has resulted in effective handling, minimizing the overall effect. While the crises haven’t completely lost effect, Nike has been able to keep them well-managed and avert potential PR disasters.