Why Nike Did It

In an era rife with divisive political discourse, most major public companies try to avoid taking stances that could make customers angry, according to The NYTimes. Yet Nike has signed Colin Kaepernick, perhaps the most divisive American athlete of his generation, to a lucrative new contract and will produce branded apparel with his name and image.

In 2016, Kaepernick began kneeling during the national anthem to protest racism, police brutality and social injustice, and a handful of other players followed suit, kneeling, locking arms or raising their fists during “The Star-Spangled Banner.” President Trump turned it into a political fight through a series of critical tweets and public statements about how the protesting players should be fired.

Nike’s strategy risks alienating countless consumers who believe the national anthem protests that Kaepernick began are disrespectful. Shares of Nike on Tuesday were down $2.60, or more than 3 percent, though it is unclear how much of that could be blamed on Mr. Kaepernick or other market forces.

However, it could pay off among Nike’s base of young customers and fans, according to analysts, and signals that political stances could be seen as winning issues by some brands. Nearly two-thirds of individuals who wear Nike in the United States are under 35 years old, and are much more racially diverse than the baby boomer population, said Matt Powell, a sports industry analyst at the NPD Group.

“I think Nike went into this absolutely knowing what they were doing, with the intention that some people would be offended,” Mr. Powell said. “But the people buying their products, whether they are a millennial or a Gen Z consumer, those consumers want their brands to take visible, social positions, and this is an opportunity for Nike to do just that,” he added.

A recent survey from Morning Consult echoes this. Urban and young consumers were more likely to say they would react favorably to a company that advocated the right of protesters to kneel during the national anthem. Indeed, on social media — where the nation’s youth live and breathe — Kaepernick attracted more than one million responses on Instagram, Facebook and Twitter in the hours after he announced the Nike partnership, according to ListenFirst, a social media analytics company.