Nike CEO Mark Price said that the brand’s DTC ( Direct To Consumer) push brought about $9.1 billion of revenue, which is only about a third of the company’s overall revenue for the fiscal year 2017. But here is the catch: 70% of the company’s total growth was generated by the same DTC campaign. Now you understand why this Adidas takeover is just a mirage; in order to jump a little further, one must learn to take a few steps back. Nike is more than determined to do away with its wholesale distribution channels i.e Footlocker, Champs, Finishline and all the companies out there carrying their products. The Wholesale channels accounted for 72% ( in the fiscal year 2017) of the company’s Revenue but growth in this area is at an all time low at about 2%, in comparison to the 70% coming from Nike’s own stores/e-commerce. I have talked about that in the post below which I wrote two days ago, check it out
Hopefully the other brands pick up a thing or two from Nike’s own strategy of going straight to the consumer. It all depends on relevant content and the ability to engage the consumer and garner traffic to their own physical stores and online shop. Check out what Nike is doing with the NBA and you’ll understand bit more about the oncoming takeover from the brand, see post below
Introducing The Nike NBA Connected Jersey, Get closer To The Game