Boston-based Converse is one of the most iconic brands in existence today. The plain canvas sneaker, called "Chucks" for short, has remained unchanged for more than 100 years. The shoe is named after a legendary Converse salesman, Chuck Taylor, who went from town to town running basketball clinics and encouraging players to wear the brand, which became a staple among pro basketball players.
In today's race for innovation among shoemakers to produce lighter, stronger, warmer, and even cooler products, Converse has held its own. In fact, its most recent quarterly sales increase was a healthy 16 percent. However, the brand's growth has not always been fast. In the 1970s, the brand lost out to rivals like Adidas and Pro-Keds and fell into a further slump in the 1980s when Nike and Michael Jordan teamed up to dominate the market with its legendary Air Jordan shoes. In bankruptcy by 2001, Converse was rescued by Nike two years later for a purchase price of $305 million and remains the only brand in Nike's lineup where the Nike name or swoosh is nowhere to be found.
What makes the shoe particularly unique is its simple retro look and feel. the company has maintained a coun-tercultural appeal by dropping its all-American image of an on-court shoe in favor of attracting a newer, Millennial audience. Advertising images include rebellious icons of yesteryear, like James Dean and Janis Joplin.
The company's chief marketing officer says the brand's universal appeal explains why the company can sell so many varieties to its culturally diverse audience. Nike's CEO says Converse is a brand that has been bringing energy and style to consumers for many years, and it's all because of one steadfast salesman, Chuck Taylor, who had a hand in creating a global brand.
Questions for Critical Thinking
1. What has Nike's branding strategy been with Converse? Why do you think Nike has chosen to hide any of its own branding on the Converse product?
2. What is it about the Converse brand that has allowed it to maintain its strong staying power in a highly competitive shoe market? Where is Converse in its product life cycle?