5 Reasons Nike's Dying: from a former Nike Marketer
Vložit
- čas přidán 25. 08. 2024
- Nike had it's worst day on Wall Street EVER last week. Their stock dropped over 20% on what should be a great quarter for them.
It's a continuing sign of struggle for the Swoosh over the last couple of years.
In this video, we will break down 5 principles the company used to dominate and 5 dynamics that have shifted to cause them to falter.
They have one of the most powerful brands in the world, but the land of Sports Marketing and Sports Business have shifted rapidly in the last 5 years. I'll break down those dynamics to help shed light on where the industry is headed and how you or your company might evolve to adapt to the times!
Sports Marketing Career Wisdom:
howtogetajobat...
How to Get a Dream Job in Sports Marketing:
www.jordanroge...
Instagram:
/ jordanrogers
#Marketing #sportsmarketing #branding #nike
Nike's at a point where it's way too big to fail. It might MIGHT lose traction and attraction for a while but it has the resources to always bounce back with time and good leadership.
That good leadership is severely lacking
@@JordanRogers2626agreed
@@JordanRogers2626 it will be back tho
There is no such thing as too big too fail. Not Nike or anyone. Nokia used to have 60% global market share. Kodak used to have 90% global market share. Where are these two brands today? With enough bad leadership and bad decisions combined with fierce competition/disruptor brands it can happen to ANY company.
@@Sabundy Facts people just don't want to believe it or think Nike is untouchable no one is untouchable and can happen to anyone if the right circumstances happen.
There's a simple fix for Nike. Stop spending money manufacturing the crap people don't want and apply that money towards better quality products consumers actually want - retros and innovative technology! Vans struggled for years and was an afterthought in the 90's to many up and coming skate brands like Airwalk. If it weren't for older Millennials and young Gen Z kids in the late 2000's, they'd be selling their sneakers at Payless Shoes. If Nike had better quality retro's always available, their profits would explode. They also need to drop the fake hype.
Nike always seems to ruin their best stuff with weird designs and odd colors. Where a lulu will put out a high performance shirt in black and grey that everyone wants, Nike will throw butterfly designs on it with a pink color. Nike is no longer staples because their basics aren’t high quality enough and their best stuff is not staples.
fair enough. that's a merchandising thing, but I hear you! Lots of others doing basics better
So tired of every basketball shoe not coming in boys colors. Fairy shoes
They are trying to be too clever. It’s not working.
Would love a long-form video with more of your thoughts on the future of Nike basketball, too. It feels like they should be leading the way on non-retro bball shoes becoming 'trendy' again, instead of waiting for it to swing back. Especially with the amount of talent in both leagues.
Keep up the great content, man! Your perspective has been refreshing to hear as someone getting started in the marketing industry.
Thx so much! They tried that with DBook and it hasn’t been successful. I’ll add this as a future idea!
I think the temporary solution for Nike would be to expand the protro line, giving people more retro silhouettes with newer tech until they can make better new products. They also have do have to worry about losing the athletes who endorse their products. A lot of them are getting paid very large contracts and could hire a staff to design, communicate with manufacturers, and distribute. If someone like Jaylen brown or Lamar Jackson were to create their own brand, and succeed, it could cause a snowball effect and be very bad for Nike.
Agreed. Both of those are great ideas!
Would happily see Aj4s, 5s or tweaked spizike with kyrie/Kevin D grade outsole midsoles
Nike also decided to take away their sneakers from most independent sneaker stores. I used to be able to buy air max 1 atmos, hufquakes, Hold Tight etc at my local sneaker store. All those shops lost their Nike accounts and either stopped altogether or now focus on other brands like Saucony, Mizuno, New Balance, Asics etc. If I want a cool collab I have to get lucky on the botted sneakrs app or drive an hour to another city to get in line at Solebox. Too much hassle. Also the amount of Samba’s, Gazelle’s, NB’s and Nimbus 9 and gel NYC’s I see nowadays along with the growing Hoka and On crowd. Nike did it to themselves.
Nike wanted to focus on their platform/ecommerce because they keep all the profit. But they have quietly pivoted back to in store sales. Nike charges a fortune and don't open up their catalog; you have to buy a bunch of trash before you can even be considered for any good product. Not worth it.
@@apeacefulmindx Yes, big mistake. They sabotaged their own moat by letting competitors into the stores which would push other brands to customers. Direct to consumer is a good idea, but they didn't need to weaken sales to physical stores. The new CEO didn't respect what has been previously built up.
looks like the over estimated the importance of their brand to the average consumer, most people just want to go to a store and buy something and if they don't sell nike they will just buy something else.
They did this in the uk also. The project was to control the prices (increase them), striking deals with more fashion orientated stores. They are overpriced.
Before even watching the video, Nike makes the same shoes over and over again and they do not innovate anymore. Plus, they keep rising prices and there is much more competition now.
Many brands go through a slump. Also, Nike has been ingrained in culture for generations. I think that nike can definitely recover.
I like walking in zone 2 and sprint all out for 50-70 yards. No one and no company can convince me to like marathon running.
From a casuals perspective. They got too divisive with their marketing, quality dropped, prices too high, and they’re missing a cool factor That they used to have in the 90s 2000s and early 2010’s. They’ve also managed to piss off many NBA and MLB fans with their loud and garish alternate jerseys.
Nike should design and sell a shoe made for walking. Most people can walk. Most will not get into running for a marathon.
They’re not gonna die, they’re just not gonna be the BY FAR AND AWAY #1 anymore
agreed
And, that's how it starts. The slow decline.
I think it's an unfair to say that Nike is no longer innovative and flyknit was last innovation. The market of running shoes with the introduction of vaporfly/alphafly, peba foams and carbon plates has changed completely, not only in the segment of competition shoes. Nike have created supershoe and supertraining shoes segment. What's really hurting Nike is its withdrawal from retail stores during the pandemic and focusing on a narrow market of sneaker collectors. From the perspective of a runner who has been running in Nike for years, the problem for me is that individual unsuccessful new models from well-known and popular shoe series (generally bad reviews of Pegasus 39, Zoom Fly 5, Invincible 3) have caused runners loyal to Nike to have to look for alternatives and buy in recent years equivalents from asics, hoka or adidas
Nike took that Fly knit design from other companies and then sued them to own the rights to it and won. Not very innovative if ur taking someone elses tech and claiming urs is better or that u made it.
That same thing of the shoe you loved getting worse has happened to me too, I used to buy only Nike mercurials for soccer and then one year their shoes become so bad that I had to start buying other brands. I don’t know why they choose this kind of way to run their business, it’s so frustrating to have your favourite shoe be butchered by someone who just wants more money. On top of that they didn’t accept my return on a 300 dollar shoe so after that I said ok no more Nike and switched to puma adidas and maybe my next pair will be New balance
As an avid runner, who usually has about a five shoe rotation at any given time, I honestly never even consider buying a Nike running shoe. Runner’s have so many better options, these days. Anyone who thinks these shoe companies like On and Hoka are just passing fads have not been paying attention… They definitely haven’t been running much lately.
Jep my shoe collection is 80% nike. But for running i never think 1 sec for nike. For 30 year just 1 brand asics. A nike outfit, and asics down under. My knee,s can,t handle running with nike.
@@petrwindmeijer7542 Same here. Mostly sporting Nike but when it comes to running I don't even consider them.
They have made a couple of mistakes in running shoe category. First of all, when they went heavily to direct to consumer selling they cut out many retailers, which opened door to brands like Hoka. Those retailers told their customers that they have something better than Nike. Second mistake is that they haven't improved enough their training shoe lineup. React foam isn't light enough. Pegasus isn't comfortable enough and has become too expensive. Shoes like Infinity don't provide anything special mainly because of the weight.
At the same time, Covid era made people to seek for comfort, which made Hoka type of shoes popular also outside of running especially because both Hoka and On have been able to make their shoes better looking in terms of silhouette and color ways compared to that what they were few years ago. Saucony, Asics and Puma, on the other hand, have been able to invent foams that are at least at the same level with ZoomX and in some cases better, which means that runners have many options.
I hate that influencer thing. They should concentrate on serious sports. Running is the most brutal sports out there and people who run 2-3 times a day are the role models. Normal people buy shoes when they see that they work for those people who really know about running.
@@baltsu all great points 💯
So PUMA is making good foams, dude?
Easily the most honest and comprehensive video I’ve seen on NKE
@@LiamNoonan-yr7go thx! 👊🏼
This is spot on. Especially calling out the Nike Running "UGC" styled content. I've shot that sort of stuff for Nike (and other brands) forwork, and it always pains me when I see some of the talking points.
absolutely BRUTAL
What’s the sales stats on “running” shoes? Aren’t MOST buyers purchasing them as a lifestyle shoe anyway?
From a long time customer’s perspective, the issue for me is that the quality of their product is garbage and they act like they have no clue why people buy their product. It’s like every sneaker is made to sell 50% off at an outlet. I bought a pair of GT Cut 3 basketball shoes when they dropped this year because I was excited about the design and because they felt great on foot. 10hrs of basketball later they are no longer comfortable the swooshes are coming off both shoes and one of the eyelets is coming off. That’s absolutely terrible. In high school I would’ve put that at least that much wear into them in less than 2 weeks. Personally I’m stepping away from their products until I see them making a higher quality product. New balance, way of wade, and ANTA all make much better shoes at this point and I’d much rather give my business to them.
Love the IG, and this is just as good. You are turning into one of those creators I check in on daily. Wish you the best, keep that hoodie game strong lol
Thx so much! Appreciate the support 👊🏼
yeah, so true that with building a global brand it seems as though Nike doesn't fully specialize on one area, which has left a gap for brands like On Running, Bandit, even in different categories such as such as Gym shark. And because there are so many, just as you said Jordan it's like an all-out assault of smaller brands on the massive warship of Nike
Lets be honest it wasnt the running that vaulted nike it was basketball, jordan, and lifestyle sneaks like Airmax 90, the dunks....
running is the foundation though
Negative sentiments creates opportunity for investors like me.
Their new advertisement is awful. They should go back to “Just do it”. Less noise, less bs, just straight up let’s get to it.
that was so concise yet easy to understand. honestly the best video that explains what nike is dealing with.
Big recreational runner, and I do own a lot of Nike apparel because it’s goes on sale and is cheaper than a lot of the premium brands. But when it comes to the footwear, the only models that appeal to me are their premium race shoes. Even then, the 3rd iteration of the Vaporfly doesn’t come close to the earlier models, and while the new alphafly is a step up from the second generation, it’s still not as good as the original. This means I’m buying older models of race shoes from third party sellers. Nike’s regular training models, the vomero, the invincible etc, are overpriced and outdated when compared to rival models from cheaper brands like saucony, ASICS or new balance. I still don’t hate the pegs because although they’re not innovative at all, you can find them on sale for peanuts and at the end of the day, I need cheap ways of racking up mileage. But yeah when it comes to daily training shoes, Nikes are objectively miles behind their competitors.
I ran track in the 90’s. Even back then they were a joke shoe. Most of us used asics, saucony or brooks.
Wish Nike would drop their contract with MLB for their jerseys. They are the worst jerseys ever made. 🤮
tough challenges there!
Smh it’s not Nike who makes them, it Fanatic that makes the jersey, Nike designs them. Learn something kid
@weeknd7245 Either way, it's sh*t. I wouldn't waste my money on Nike or Fanatics as they are horribly made jerseys for those who don't know what quality is. As far as learning something, I've been purchasing authentic jerseys for years, when they were actually worth wearing( Rawlings, Russell, and Majestic). I don't waste my money on garbage. Learn something yourself.
Nike was a victim of its own business model. It tried to corner top athletes/personalities in the world. While this approach was effective in the 70s through the 90s as the competitions were struggling, the last 2 decades were gradually taking Nike's market share. The long term lucrative contracts given to golf, soccer and even top basketball, nfl players not necessarily were giving a good returns vis-a-vis it's huge amount contracted. The competition was gaining momentum and greatly improving its designs/quality and Innovations which provide selection of choices to the worldwide consumers. The huge accumulated financial obligations due to its business model, caught up with Nike's at a time when competition was great and Nike's losing a big deal of market share.
The second you’re trying to appease stakeholders is the second you’ve lost.
Unfortunately, every public company must appease stakeholders… They could go private and then do what they want to do
Tough balance!
@@Nouveaudel_air that is so fair. I guess what I mean is the second you are pivoting your marketing strategies to make a quick dollar (to hit the quarters numbers) instead of thinking about the long-term gains is when you’ve lost.
Shareholders want Gains. They don't care how. Nike is a Sportswear company but they are acting like a Lifestyle brand.
Nike got a MBA person as their CEO. The CEO doesn’t care about anyone but the shareholders.
i just want Nike to get back to the shoes i fell in love with as a runner to be honest. but i also loved when nike had the smaller stores and hosted group runs. it was a great way to both introduce folks to the products as well as show love to the running communities. it’s why i became a runner and a fan of nike for life.
Great take and breakdown Jordan, death by a thousand cuts is a great way to put it
Tough to watch but it’s happening
Hello, for what you explaining to me is, that Nike kind of know sooner or later they were going to hit this wall. 100% i agree with everything you explained, stay blessed. P.S. Nike needs to go back to the old ways, starting with lowering the prices.
New Balance is a much better product than anything Nike puts out.
good insights, looks like any brand would go through this cycle, everyone has their turns, and shareholders just destroying brand after brand with those short term goals.
They put out quality products that are almost top tier but fall just short, and still charge top dollar. Likely because they’ve gotten too big to be super concerned with the details that produce the best of the best products at reasonable value. Look at the Lebron 21. It only sold in volume when prices were slashed 50%. Now we wait for the sales and discount codes. The product line is not streamlined and thus they carry too much fat. Also their sizing is erratic. No consistency in sizing with half baked shoes and products and lack of real focused advertising. The competition has caught up and naturally the market share is shrinking. So much competition, with so much stagnation.
Hi Jordan
This video truly touched me I have been a fan of Nike since I seen different strokes and Gary Coleman wearing a Nike Cortez, then I fell in love with the Nike Terminator. I got away from Nike in the 90s and star wearing Reebok injure and jump back to Nike and the 90s basketball shoe really was the thing that made me have a true love for the brand from the air Penny to the NIKE air team zoom to the NIKE flight posit and a few others. I also work for NIKE briefly in the retail space which I left however, I would love to come back and especially this role or even on a higher level role to re-introduce the brand to another demographic. I think they got away from it me being a basketball player I don’t see kids playing ball as much you know unless it’s a YOU or something like that. I think Nike needs to get back to the roots of the every day runner every day basketball player the every day person who works out like you said oh knows, other track videos you know getting back to the basics of what they do I think sometimes the oversight have tried thousands of times to re-introduce or get a job back at Nike with a lot of pushback or know they’re not interested or you can’t do this or whatever I think they lost the people who have passion truly for the brand on the lower levels and I’m not sure about the mid senior or the mid levels but people who understand that you know it’s about shareholders, but it’s also about the peopleand the delight or the emotional connection to said brand love this video.
I ultimately wish I could reconnect with Nike so I can reintroduce others !
Making change of the Top of the company would go a long way new CEO and president with a different direction later Phil Knight
Hmmm…he never mentioned New Balance though?
NB too!
Nike got so big it runs itself. There is so many things that made them great they don't do anymore.
1- Nike should go back to not giving every athlete a signature shoe. In the 90s Marketing were effective campaign memorable when they just captured a moment of an athlete with better incentive if campaign pays off. 2-Go back to Marketing inspirational athletes instead on focusing on social media influencers. The practice It’s completely out of touch with the consumer. 3- What is Nike identity a sportswear brand or a luxury brand. The brands apparel is suppose to reflect sports rather than high end fashion. Also the direct to consumer should be re-evaluated. Sports in general touch on different parts of the economy. The partnership i stores cater to a variety of consumers at different price points. Nike must scale down its production it seems like they’re catering to a 3rd and or 4th hand consumer which are resellers.
No reason to ever buy another Nike product ever again
Good take on why Nike fell off since they keep milking on retros for the sake of nostalgia and someone who never even wear for looks. If I really wanted a Jordan 1, it'd be from Diadora.
CEO that's there right now is a private equity guy/management consultant. I think the longer he stays in the longer the doom loop.
I think your spot on with all mentioned, never want to see the brand we all grew up wearing fall. But like mention we are in much different times where the consumer and athletes know their own powers and aren’t taking bad deal when they can do things with a much smaller team and build on.
indeed!
Still rocking nikes till the death of me.
Lots of brands slowing down rn, Nike will never not be part of the culture.
Great video bro, a lot of ppl have trouble understanding Nike business, you explained so well. I hope they bounce back since Im buying some stocks
I am watching intently, as a Nike shareholder.
Great presentation.
I do feel that you should have touched more upon the importance of Michael Jordan and the Jordan Brand at Nike.
And what are your thoughts on the secondary market?
Great take. Not only for Nike but for the overall industry.
Thanks, Gemo! Would love your thoughts sometime too
As far as Retros, Jordan made Nike what it is today. People just want that feel of buying, having and wearing Js, the ones that Michael wore specifically.
They have nothing but retros, the competition is making more innovation
Nah bro it’s the fact The Designer Tinker Hatfield designed beautiful attractive shoes. Jordan was just the Cherry on top.
But the OG colorways seem to sell out in minutes…did they have better taste in color back in the 80s xd
Nah they have Wemby, Mbappe, Jordan, Track stars, CR7 just to name a few. They aren’t going anywhere. They just overproduced due to the supply chain issues of 2021-2023 combined with the belt tightening from consumers. They will be back stronger then ever.
I believe that Nike should invest in their own gym clubs. Have a tier system. Tier 1 is for high income people that want to train like professional athletes. Tier 2 gyms is for upper middle class, rich people. Tier 3 is for everyone.
Good info, let's remember that Nike was down in the dumps and was getting pummeled as a company against brands like Adidas when they were trying to define themselves. Then Michael Jordan signed on and catipulted the brand to where we know of it today. Since then there was a surge in Nike particularly Jordan Brand( which is up ~6%) during covid due to the "Last Dance" docuseries from Netflix and you saw the boom due to reselling.
Also during this time Nike was trying to do more direct to consumer and reduce the amount of product at other retailer brands like Footlocker, and Finishline. This allowed other brands to come in and fill the space that was left vacant by Nike.
Nike still makes the best looking products and Jordan brand alone will keep it up
They haven't really been innovating in the running shoe space. All the other shoe brands come up with different midsole foams and combinations and a variety of choices from beginner to pro level running shoes. And as a runner the other brands feel better to run in. Zoom X which is their best foam feels great but dies out fast and React X/React feels like a brick. In the casual shoe space it the same models over and over again just different color ways and so called "collaboration" but just a change in color way again. Athleisure space, clothing is pricey and expensive at the price point compared to other athleisure brands which use better feeling products and you don't look like you're wearing a billboard with all the logos and branding. With that said good time to buy stock and 🤞 that they come out of this one and innovate and come back to prominence.
I used to be excited to check the SNKRS app, now it's the same ole stuff. A retro Jordan in a weird colorway or some hideous looking "shoe" I have no interest in at all. Make good looking shoes, innovate and limited the retros. At least bring back some of the cool stuff with updated tech.
I think Nike is losing share in China vs Chinese brand and this could hurt NIKE long term.
Great analysis Jordan really painted a picture of all of their flaws and obstacles rn💯
@@justadreaminwater2628 and opportunities! Thx so much
what nike has done has made shopping for nikes like shopping for a car. the prices vary too much. It makes me feel like it is impossible to buy some shoes without thinking I am being ripped off. I tried searching for camo airmax online and the only ones that look cool are like $1000. that is absurd. i don't care how rich i ever become. i will never feel at ease with dropping 1000 dollars on some nikes. and the fear of being overcharged makes me want to just shop for another brand.
This was so good. I’d love to hear more about what the next generation of sports companies and brands will look like.
I'll add that for the future!
I spent 15 years at the brand...when Phil came back around 1999-2000 he said the first thing he was going to do about the stock price was to not manage the stock price. Sport is built on emotion--and they've lost it.
Facts
big facts
Lifetime the stock is up 48,000% and every other shoe brand’s definition of innovation is just a diff type of foam sooo not sure what your point really is?
Good point. Take the G.T. Jump, I don't see any other manufacturer designing anything that could directly compete with the tech fitted into that shoe.
@@s13shaka you must not have watched the video. Lifetime, they’re amazing. The world has changed a lot in our lifetime, so that number may not continue up into perpetuity
@@JordanRogers2626 oh god you’re hedging now. Nothing worse than someone who prefaces something good only to say the opposite right after ffs
IT ALL COMES DOWN TO TELLING BETTER STORIES. NIKE, JUST HAS TO DO THAT BETTER.
I'd argue that's one of their best strengths, but it hasn't evolved well for an always on society versus 4X a year
Great quality video and super enjoyable to watch . THANKS
The company can always innovate and bounce back, the failure is from the leadership at the top. The CEO doesn’t have much time left and will be pushed out. Volume and cost cutting as his modus operandi is an ill fated approach. The company needs to go back to basics - innovation, story telling, advertising, affordable pricing, star athletes and quality control much better improved and stop the ridiculous retail price spiraling upwards. Shedding the workforce wouldn’t cut it, just fudging numbers in the short term and loss of talented employees. I don’t foresee long term improvement until the CEO is gone
Couldn’t agree more
Nike stopped making Nike Air BWs some years ago which were my go to trainers. The 90s, 95s, 97s, and Air Max TNs are far too expensive, and many of the colourways are nasty. I like suede Jordan 1 Hi , but most aren't suede. AF1s are popular, but are a leisure shoe as they're too heavy and clunky.
Love the breakdown. Really interesting exploration of the different factors contributing to Nike's current state, and agree that all of them have in different ways contributed to the mess they're in. As someone who works in advertising and spent a while at W+K, my focus is normally on the comms side of things and I've always held Nike up as a shining example of how to truly connect with your audience. Like you said, it seems as though they've lost that audience focus, that fire, that sauce and it's so palpable in their comms throughout the entire ecosystem. Hope they can refocus and get their mojo back.
me too! Thanks so much.
Another brick that you could have used is the cannibalization by the Jordan Brand and how it became competitive with Nike's other businesses, such as uniforms. The Jumpman logo is more favorable than the Swoosh in my opinion. Another thought is the heel bag that you see in Air Max. It's nice and with the transparency and all but the quality sucks. Have you ever gotten a flat tire on your feet? And when you buy a Cole Haan dress shoe with the heel bag, that heel bag sole falls apart, and the dress shoe is done.
Prob w Nike’s running shoes are they’re too darn expensive. Adidas’ Adizero line by comparison is affordable. Not to mention Adidas has been cool since Run DMC, Yohji Yamamoto’s Y3 collab and now Gucci collab.
In fashion its a cyclical business. Nike has reached its height so now they will need to do some major transformation. Real question is whether or not the current leadership can execute the change. Without a doubt they have the resources to weather the storm or any economic downturns. I agree they need to go back to its roots and start making better running shoes. Those runners are the true marketers and that's what really made them famous from it's first place. Look at Vans and North Face, dying brands. Look at Lululemon, also reached its height and now slowing. But brands like Hoka Asics and New Balance are taking market shares from Nike.
Regardless I personally think Nike will be back. They have a rich balance sheet and they will need to overhaul the current management team to do so. It will take several years for this to happen.
Great workkkk! Really thing production wise if this was exported and filmed in a higher definition/resolution it would do crazy numbers!
@@DOLeao_ baby steps
Wow this was a fantastic presentation. Well done. Every Nike employee should watch this and wake up
@@willkim2269 thx!
Then they hired JD, one of the worst Ex EBay CEOs to run the company to the ground.😂
Social media allows for small brands to have big impact in the space.
This slump certainly makes you wonder.
I'm not sure that going back to the Running roots is the solution, because youth culture is constantly changing and has changed a lot since the 1980's and 90's when Running was booming. Running seems almost traditional and old fashioned now. In the 1980's jogging was new and fresh.
For example, I wonder how much of Nike's footwear revenue in the last 20 years has been from performance footwear, compared to lifestyle? Although I recognize the importance of Nike apparel, which is probably mostly performance and should be included in the equation.
But I can't see how for example in the 00's Running helped the huge retro sales, except maybe the Air Max channel of running inspired lifestyle. Court Shoes seem to have provided the much of the revenue and cultural engagement since then. And are likely soon destined now to fade as performance running and cross trainer shoes did before them.
I can imagine the next success for Nike will come from finding the cultural connection to Gen A, B and C, which probably wont be the same as for previous generations, just like the retro trend appeared very strange to many Nike purists in the 00's. And it could be that Nike was even lucky that the wave just so happened to be retro (which they had plenty of styles for).
Logically, a new connection will be just that, and something probably foreign to Boomers, Gen Xers and Millenials, who should become increasingly out of touch with youth culture as they age.
I believe that the next core consumer Generation of Nike expects something intangible like connection through interaction and community. But I'm not sure if Nike can understand or develop those channels that are not obviously materialistic, especially for the older aged and classically trained and educated management. Being authentic with retro products was easy for them, how to create authentic personal connections maybe less so.
What Nike does have going for it though is a history of connecting to evolving youth culture, from Nike SB to Colin Kaepernick. Unless of course they have become too focused on process and profit and are becoming just another business minded, traded company by osmosis.
Jordan Rogers for the next CEO of Nike!! LFG!!!
hahaha! No thank you.
ON cloud & Hoka is just a trend phase which will come and go , Nike just needs to keep R&D innovating !
And Nike kept Jaylen Brown of the Dream Team apparently.
Worst case scenario, if Nike really dies, the price of their existing classics will skyrocket leaving some sort of room for them to reinvent themselves somehow. But they really need to do something about that ‘yesterday’ if they wanna stay in the game.
For the longest time in my life as a shoe fetishist (way more than a sneakerhead), I wouldn’t buy any sneaker if it wasn’t Nike. I think they’ve been trying so hard breaking barriers even they don’t know they’re breaking that us consumers don’t really get it. Which is why most of us stick to the classics that made them iconic.
Don’t get me wrong, the “cutting edge” stuff they do can be impressive. But I don’t see Nike as the cutting edge tech company it’s trying to be. There’s plenty of other brands that do “performance” way better than Nike. Tinker Hatfield’s work was soulful and the biggest landmark for them. They need to bring that same energy into this generation.
Nike is just too expensive for me. I can get a nice comfortable pair of new Adidas for $60 bucks and Nike doesn't sell much of anything under $100 bucks.
It feels like there is a running bubble. Lots of people will overcommit at the beginning and buy the coolest gear as they train for their first 5K 10K half but not much after that as they slowly trickle out of running.
What percent of people must stick to running over that initial race to maintain these start ups (which I love)?
not sure!
When Nike sent me a pair with a frayed lace, I asked them to send some laces. The said they couldn't but if I'd return post the whole pair of shoes they'd replace them. They lost me as a customer right there. They offered a 25% coupon by way of apology and I felt further insulted. Seriously: who sends a pair of shoes twice across the globe ( I'm in NZ) just to replace a shoe lace. And their apology is to ask me to spend more with them. Nah brother, Nike lost its way.
Nikes running shoe lineup only have one good shoe and that's the top end Alphafly 3. Everything below that gets blown out of the water by their competition at Adidas with the Pro 3, SL2 and Prime, Asics with NovaBlast and Superblast, Hoka Mach 6 and Skyward X , Saucony with the Endorphin Speed. Oh and don't even get me started on Nikes Trail shoes, shit.
I feel Nike needs to stop with the retros. I get they retro the shoes that at one point were innovative or when Nike was at its most innovative point "The early 2000s' but. A lot of the people who were into those shoes back then have grown up. They need to focus on the newer generation of people coming up and need to make shoes pertaining to those people's interest. Also stop re-releasing collabs if ur going to do that. Actually, do another new collab to keep the original where it's at and bring something new to the table. It just seems lazy and a money grab to just bring back something that was so limited to Mass production or larger production in general. The Undefeated 4s for example. Why not just do another full on undefeated jordan collab?
they do UNFTD stuff at least once a year, if not more, but hear you on the retros! Ppl want the hits.
@@JordanRogers2626 Oh yea for sure but not Jordans specifically its usually just a Nike shoe like the Nike terra humara collab which was pretty good I'd say.
Everything is so over priced and the quality isn’t good. You can get better quality for your money with other brands. The shoes being over priced I get but everything from hoodies to shorts is just way too expensive.
Dude sooo much info and props hard to follow the 5 things that’s going to cause them to fail. Good stuff. S/O to Hoka for leading the chunky sole way in what has not become a trend. Nike seized the an opportunity to build on that innovation but as you said that’s for a specific runner and race.
Good feedback, thank you!
They're product line up is diverse but way to complex.... In a world wjere cost of living is high, average Joe cannot afford 15 different models of running shoe that all overlap.
Also, their entry price has climbed ridiculously.
At a general global level the threat is Adidas, at the level of the United States it is On and Adidas, at the running level in the United States it is Hoka and Saucony and Adidas is better in sales too,
Nike is not going anywhere, they are going through a slump but will bounce back. Brand is too strong, with focus and right leadership they will recover.
I was thinking about buying shares and holding for a few years, it’s worth some risk to me that they could turn this ship around. They have a lot of things that will give them a advantage over their competitors, the primary thing being is that they generate a shit ton of cash and can use this cash to innovate, I would cut the dividend and start investing in R&D and try to make a shoe that beats everyone else but is cheaper than everyone else. It will become the most popular shoe, it will have a good message and it will make people get interested in Nike again naturally
@@shishkilover they’ve turned it around every time before 👊🏼
The problem is the same. Leadership.
I should’ve watch this video before investing in NKE last week🤦🏻♂️
ha! Historically, they always come back.
I definitely hope to see at least some innovation/disruption once the Olympics kick into high gear. Even the stuff that didn’t work, like the MaxSight contacts or Eaton’s cooling mask, were awesome moments. Even if innovation doesn’t stick, it’s fun and impactful to see the efforts!
EXACTLY!
Mans brought the blocks out!!!!
We’ve got props!
Blocks > Decks
I spent about an hour clowning Jonathan Issac’s clothing brand until I realized they were serious.
Mark Parker landed in Orlando 20 years ago and saw all the shlubs going to Disney in Nike gear and changed the company from a behemoth into lots of smaller companies with true insights into their consumer (skate, running etc.), the precursor to Rabbit and Tracksmith, he knew people want their brand to say "i am an insider in my sport". The adidas Euro spot "Hey Jude" would have been a Weiden ad twenty years ago. Obviously, they have moved 180 degrees back to the foot covering he saw back then. Funny how Nike knew then that league contracts (FIFA, NFL, NBA etc.) only tied up gobs of money and put shoes on referees, but now they own every league. They will come back, but not in 12-18 months, and not with Win With Air (That is a lame campaign for Paris2024). Good analysys in your video
Great Video, good to see someone with some solutions, instead of these fancy reasons why Nike hitting a rough spot. I call it a wake up call, time to get to work.👊🏾
AGREED
I grew to hate Nike for making so many short lifespan products. I value shoes that last a long time and Nike's seemed designed like my toothbrush: to get dirty and run down and need replacing sooner than necessary. Tricot mesh shoe exterior? How do you clean that and what is it for? Adidas Samba look as cool old as they do new. I wear leather wingtips that must be 75+ years old and they are great shoes if it isn't slippery. I'll buy golf shoes and take out the spikes just because I know they're made to be used and will hold up. Take it from the man.
Nike needs another Michael Jordan
They need better marketing that gets people talking too. Where is the Catilyn Clark campaign? They should open up the bank to get Jordan and Barkley together in a commercial again. Get non athlete types like Elsa Hosk as well and fight back against Lululemon in that space. Do partnerships with popular social media types, etc. etc. They need to up their marketing game. On the product side, need to innovate with shoe designs.