Allbirds Positioned as a Sustainable Brand
Allbirds’ valuation has skyrocketed over the last few years. Its latest $100 million funding round in September put it at around $1.7 billion and fueled rumors of a forthcoming IPO. While that’s huge growth over the seven years it’s been in business, it’s still a fraction of Nike’s annual footwear revenue of more than $24 billion and Adidas’ $15 billion.
Nike’s been the No. 1 selling sneaker brand for at least the last five years, thanks to the hype built around its many product releases throughout the year. Any footwear company that wants to grow a significant size will inevitably end up bumping against Nike, but it’s unlikely that Allbirds will go head-to-head against the brand, despite recent comparisons. Co-founder Tim Brown said he has no intention of aping Nike’s business model or strategies.
A major component of Nike’s market dominance to date has been the hype it’s been able to build around its frequent releases and sneaker drops. Between collaborations, new models, new colorways of existing models and special editions, Nike releases more than 100 new sneakers every year. The high resale value of drops often make Nike releases appealing to sneakerheads, while its vast catalog of lower-priced, more basic shoes cater to the casual consumer.