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Nike may have already perfected making athletic gear, but it’s now looking to pump up the fanfare. The sportswear company inked a long-term deal with Fanatics to manufacture collegiate-sports fan apparel and distribute it to a handful of sports-driven universities.
The deets: Manufacturing begins summer 2024; Fanatics’ college division already works with “most” Nike-sponsored schools, per CNBC. In a statement to Retail Brew, Nike said the move is part of a change in how the company wants to serve NCAA sponsors.
- Nike is not only extending existing licensing agreements with Fanatics, but also Branded Custom Sportswear, another licensee partner.
- Fanatics will design and create apparel, which includes replica jerseys, sideline clothes, and headwear.
The company says its vertical manufacturing business model, which uses an agile supply chain and on-demand manufacturing, makes it possible to create gear in real time.
“Our team is excited to maximize the value of Nike’s college partnerships by creating faster speed-to-market of fan gear through our agile supply chain, resulting in an expanded assortment of both timeless and on-trend Nike-branded merchandise for college fans and retailers everywhere,” Fanatics Commerce CEO Doug Mack said in a statement.
Big swoosh: Fanatics is a major distributor of fan gear, inking deals with the MLB and NFL in 2020 to manufacture all the Nike-branded apparel that’s sold at retail. This new deal will likely include colleges and universities such as Ohio State, Georgia, Oregon, Oklahoma, Clemson, and Penn State, sources told CNBC. (Fanatics declined to confirm those schools with Retail Brew.)
- Fanatics said the deal presents an opportunity to tap into an “underserved” women’s college merchandise market.
“Nike is committed to delivering the best product innovation for our athletes and consumers, and to creating marketplace opportunities for our partners,” the company said in a statement to Retail Brew.
Zoom out: Sportswear retailers like Nike aren’t the only ones embracing athletics. Hugo Boss and Russell Athletic teamed up last year on a retro-inspired line that’s a casual take on athletic apparel.—KM