Patrick Anderson’s Post

Supply chain stumble by Nike has the athletic shoe giant pivoting back to a time-proven strategy for the company. The brand is reforging relationships with wholesalers and retailers after a direct-to-consumer model failed to deliver results. Learn more from The Wall Street Journal: https://lnkd.in/g7xEJHHM #supplychain #supplychainnews #nike #athleticwear #retailnews

"During Donahoe’s tenure, Nike sales have grown 31% to $51 billion in 2023. That is more than double the results of Adidas, its closest competitor by far. New Balance reported sales reached $6.5 billion last year, and upstart On almost hit the $2 billion mark." - The Wall Street Journal / Inti Pacheco (unlocked link below) Yet the markets have punished Nike stock. Winning in the sports business requires greatness at product innovation and clean distribution. Even with 31% growth, the markets know that Nike is underperforming relative to stronger competition, especially a strong lululemon, resurgent adidas and New Balance and niche players like On, HOKA, Brooks Running, Tracksmith, Vuori and NOBULL creating new energy. If we look at history, this same negative pattern has repeated itself whenever a new CEO without a sports / lifestyle product or sales background takes over, regardless of how talented and experienced they are. And the opposite positive effect takes hold when a product leader takes over. What do my sports / lifestyle industry people think? /// #innovationeconomy #nike #sportsinnovation #therealheroistheproduct https://lnkd.in/eQjY6ppb

🚨 Insights on Nike's Recent Struggles 🚨 I read with interest Nike's recent challenges, highlighted in this WSJ article. Once revered for its culture of innovation and cutting-edge athletic footwear, Nike finds itself grappling with some major challenges : 1) Shift Away From Retail Partners : Nike’s decision to sever ties with longtime retail partners like DSW, Urban Outfitters and exit from retail saw the termination of a third of its sales partners and less merchandise sold to Footlocker, Macy’s. The move was aimed at a direct-to-consumer focus and the decision underscores the challenges of balancing innovation with established partnerships in a changing retail landscape. 2) Strategic Missteps and Stalled Sales : Despite aspirations to position itself as a future tech company, Nike's recent sales figures tell a different story. Flat sales and a 24% YoY decline in shares highlight a loss of momentum in the market. Its CEO's strategy to boost disruptive innovation and focus on digital channels has faced challenges, with the company struggling to meet its ambitious targets resulting in layoffs. 3) Tech Investments and Operational Delays : Nike's push towards digital sales and tech integration hit roadblocks with delays in implementing its new platform S/4HANA. This multibillion-dollar endeavour aimed to streamline operations, inventory, and enhance digital sales - but has fallen behind schedule, leading to layoffs even in its global technology group which includes some AI team . The company's reliance on specific partners for digital sales hasn't yielded the expected results, further complicating its recovery efforts. 4) Lost Ground In Critical Categories : Nike's missteps in re-prioritizing certain product categories, such as neglecting the running segment and focusing on high-profile franchises like Air Jordan and Dunk, have eroded its market position. The shift away from affordable footwear options and a dilution of product exclusivity have alienated segments of its consumer base. In navigating these challenges, Nike faces a pivotal moment requiring strategic reassessment and agile adaptation. For many companies and executives, it’s imperative to learn from industry giants like Nike and recalibrate strategies to stay ahead in an ever-evolving market landscape. #Nike #Ebusiness #Retail #DigitalTransformation #Strategy #BusinessInsights https://lnkd.in/gVJPMVSi

Very interesting longform profile, particularly for the sneakerheads and how difficult it is to get digital strategies right during and post-pandemic. #Nike #digitaleconomy "Since the pandemic, Nike has lost ground in its critical running category while it focused on pumping out old hits and preparing for an e-commerce revolution that never came. The moves, current and former employees say, have eroded a culture of innovation and edginess that made Nike one of the world’s best-known brands. Donahoe had told The Wall Street Journal in 2020 that his No. 1 priority when taking over the company was “don’t screw it up.” Four years later, the company is unwinding key elements of the CEO’s strategy that have backfired as a growing number of upstarts nip at its heels.  Among the reversals: As Covid raged and more shopping moved online, Nike cut ties with longtime retail partners such as DSW and Urban Outfitters and tried selling more merchandise directly to consumers. It is now asking some of those stores for help clearing out its overstuffed shelves and warehouses. The strategic missteps have animated a debate inside the company about its identity. In its zeal to boost digital sales, some current and former employees say, Nike veered from its roots as a maker of cutting-edge footwear for serious athletes. It has opened itself to competition from newcomers such as On and Hoka, which have borrowed from the playbook that fueled Nike’s rise—including focusing on sport over lifestyle, and taking risks on innovation."

You might not like it—but this beast is PEAK branded merch. 🤩 10,000,000 of these Sportsdirect.com mugs have been sold in the UK. (I totally made that up, by the way, but I wouldn't be surprised given how much of an icon this mug is) Nearly everyone bought it because they thought 'Why not?' while buying a pair of adidas boxers. And much like Chic-fil-a in the USA... the brand's owner is not exactly a loved figure. Nevetheless, it works. Why? ✨ Unique and Different—it's an American supersize mug, in the UK, where everything from cars to houses to salaries are small 👩🎤 Makes you feel special—it has a hefty weight that makes you look very important and serious 😎 It's good for the bants—this mug has been the topic of office banter far more times than it deserves With its nearly 600ml capacity, too, the free office coffee will go a long way. What's some company merch that you can't go without? (Can't you tell it's Friday evening?) 😴 #memes #brandedmerch #sports #sportsdirect #b2c #b2b #merch #swag #corporatelife #corporateevents

🔍 𝐒𝐩𝐨𝐭𝐥𝐢𝐠𝐡𝐭 𝐨𝐧 𝐃𝐋𝐂 𝐜𝐚𝐬𝐞 𝐜𝐚𝐫𝐝𝐬 - 𝐋𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐂𝐚𝐬𝐞 #𝟐: 𝐀𝐜𝐭𝐢𝐨𝐧 𝐒𝐩𝐨𝐫𝐭 𝐯 𝐍𝐢𝐤𝐞 (𝟐𝟎𝟎.𝟐𝟑𝟏.𝟕𝟔𝟒/𝟎𝟏) 🔍 Time to highlight another case card! Are you familiar with the Dutch Action Sport v. Nike case? 𝐊𝐄𝐘 𝐅𝐀𝐂𝐓𝐒 📌 • Nike terminated its distribution agreement with its Italian distributor Action Sport for breaching its selective retailer distribution policy by selling Nike products on Amazon, which was an unauthorized platform. • The policy stipulated that distributors could only sell products online through their own websites, authorized resellers, or authorized third-party platforms. By not adhering to this, Action Sport breached its distribution agreement. • Action Sport contested the termination, arguing that Nike’s selective distribution system did not meet the Metro criteria and violated Article 6 of the Dutch Competition Act, as Nike’s products are not luxury items. 𝐂𝐎𝐔𝐑𝐓 𝐑𝐔𝐋𝐈𝐍𝐆 ⚖️ Both the District Court of Amsterdam (October 2017) and the Court of Appeal (July 2020) ruled in favor of Nike, determining that their selective distribution policy did not constitute a hardcore restriction. The Court of Appeal hereby referenced to the ECJ’s Coty judgment clarifying that selective distribution systems are not limited to luxury products. Check out the case card on the DLC platform (https://lnkd.in/eTK-2wxf) to examine all the details of this case! #LegalUpdate #CompetitionLaw #Distribution #Nike #ActionSport

Did you know that in 1984 the N.B.A. banned the original Air Jordan shoes? It's true! Read on for the rest of the story. Back then there was a league rule that said the sneakers players wore in games had to be at least 51% white. Non-compliance with this rule resulted in a painful $5,000 per occurrence fine. This was sufficient to deter most from even questioning the rule, let alone violating it. But, the folks at Nike saw it as an opportunity. See, Michael Jordan was well known as a college player at the University of North Carolina and had been the third overall pick in that year's N.B.A. draft. As such, they were certain he would get much publicity in the professional game. Nike, which was founded in 1971, had gone public in 1980 but was struggling to gain the traction they wanted. In a bold and unprecedented move, they spent nearly all of that year's marketing budget on signing Jordan to an endorsement deal for a new basketball shoe named for him. Part of that deal was Jordan wearing those shoes in games - even though they were out of compliance with the 'at least 51% white' rule. By wearing them in a game, MJ was assessed the $5,000 fine each time. For the 82 game season, the fines totaled $410,000! And, per their endorsement contract, Nike paid those fines. The even ran an ad campaign around it called Banned. (see the video in the c@mments) How did breaking the rules work out for Nike and Jordan? Jordan became the NBA Rookie of the year and Nike sold over $126 million of his shoe. Last year, the entire Jordan brand sold over $6 billion and the association has earned MJ over $1.5 billion in lifetime royalties. 😲 I'd call that a successful collaboration, wouldn't you? Speaking of successful collaborations, I am pleased to be co-hosting a webinar with Rob Deptford on May 23rd at Noon US Eastern time. Titled, YouTube Automated Prospecting, it may violate what you believe to be 'the rules' of how to grow your company. (l*nk bee low) But, sometimes the rules NEED to be broken, don't they? 😊 #FreakingBrilliant #Creativity #Innovation #Success

🚫 No emojis 🚫 Hey everyone, Have you heard the latest market report on the shake-up between JD and Nike? It's causing quite a stir, and I think it's definitely worth a read. Check out the full story on "This is Money" and let me know your thoughts. #MarketUpdate #JD #NikeShakeUp https://ift.tt/ULx4sCX

Nike sinks 10% after it slashes sales outlook, unveils $2 billion in cost cuts A customer enters a Nike store along the Magnificent Mile shopping district in Chicago on Dec. 21, 2022.Scott Olson | Getty ImagesNike on Thursday unveiled plans to cut costs by about $2 billion over the next three years as it lowered its sales outlook.The stock fell about 10% after hours. Nike shares were up 4.7% so far this year through Thursday's close, lagging far behind the S&P 500's gains for the year. Retailer Foot Locker, which has leaned heavily on Nike products, fell about 7% aft... Read more here: https://lnkd.in/dtcbv7xW . . Like 💝 Comment below ⏬ Share ✅ For More Such Updates Follow Us @qnewshub @qnewscrunch . . #qnewshub #qnewscrunch #Business

The importance of protecting your brand. Very interesting stories.