A couple of years ago I used to run a rubric on my website called The sneaker hunt but put a halt to it when I shifted from being a full time reseller to writing more posts and running my math tutoring site . By the way if you need tutoring help in the following courses Pre-algebra, Beginning Algebra, Intermediate Algebra, Statistics, Finite Mathematics, Trigonometry, Pre calculus, Calculus, and much more, don’t hesitate to contact me via Get Math Help.
I decided to reinstate “the sneaker hunt” since I launched the Housakicks Proxy service and the last couple of weeks have led me to a few shopping malls in my local area. I have really punched Adidas with left hooks and uppercuts when it comes to the demise of their most coveted products of the past couple of years i.e NMD and its derivatives in the retail market, see my post below for more details
But tons of Nike sneakers are also causing nightmares to retailers as well and I will show it to you in the pictures I collected during my recent trip to the mall
Many may say that Nike is in trouble after seeing the kind of markdowns displayed in the images above but that’s not the case. Nike isn’t in any trouble whatsoever and the primary reason why the brand is thriving is because of their monopoly on the market. Footwear websites are flooded with Nike’s upcoming sneakers and other brands are lost in the process; I’m going to throw in a random ratio based on my observations on my own website and others .. for every 20 Nike ‘s post , there is one adidas post , one new balance post …
1.Ratio on Housakicks as of now on my main page for 12 Nike sneakers related post, there is one Adidas post and one Under Armor post ( ration is 12:1, 12:1)
2. Sneaker News as I’m typing this post on SN’s main page for every 19 Nike articles, there is 1 Adidas post and 0 other brands posts
3. Sneakerbardetroit for every 35 Nike related posts , I counted 7 Adidas related posts, 2 Puma posts, 1 Reebok post and 1 Vans post..
This monopoly of the news is synonymous with monopoly on retailers’s shelves and if that’s the case consumers are more likely to buy Nike shoes than any other brands. And consequently retailers hands are tied because they have no option but to keep their relationship with Nike.
And who is losing in the process ?
Nike !!! Of course not because not only does Nike dominate the news and retailers’s shelves but the brand has also set a system in place that benefits them either way. The CDO ( Consummer Direct Offense) or DTC is Nike’s latest weapon and no one is safe from it even sneaker blogs are in danger.
Have you noticed that Nike news ( referring to their website news section) can easily compete with the most popular sneaker blogs in the market. What I’m saying is when your blog only mentions colorways, backstories and release date, you aren’t really saying much; and once the audience realizes that they can easily get that kind of information directly from Nike, what do you think will become of your blog? Nike has even launched the Air.jordan.com site really aiming at getting the brand’s foot in the sneaker culture and eventually overshadow and dethrone the common blogs for the shallowness in the information they provide.
The post was supposed to put an emphasis on Nike’s products being marked down via Retail and the connection with the DTC. I’ve mentioned in several of my posts that Nike has devised a clever tactic to keep their major distributors happy – the RTV system that allows stores like Finishline , Footlocker , champs , Foot action and maybe Hibbett to return products they can’t sell back to Nike for a credit towards their next bulk purchase from the brand… you heard that- a credit … But guess what? Those products are heading straight to Nike’s own outlet stores where they can be sold directly to the consumer for even cheaper than they are in retail. And when you take a look at social media platforms and you’ll see countless folks posting images of their latest Nike outlets finds. Where Nike wins is this – margins, selling directly to the consumer gives the brand better margins than selling through the distribution channels such as footlocker and the rest. And here is the catch, not everyone has the luxury of utilizing the RTV system and I think Nike has figured out a way probably using mathematical statistics ( just like insurance companies) to limit the amount of products coming back to the outlet stores to keep their system rolling. Minor retailers can’t use the RTV that’s why you can walk in a Dtlr store and see a pair of Air Jordan Retro reduced to 1/3 of its retail price.
Hence Retailers are the only ones in any kind of real trouble. And their only threat is not only Nike but now growing third marketplace called stockX that has the potential to throw more jabs at them. Folks can literally bypass the mall and head directly to stockx, leave money on the table for a certain shoe they want and if an individual within a Nike outlet can find that product, the transaction can take place on stockx immediately. It’s a buyer ‘s market and Nike is in a position to be the sole winner. Why do you think so many resellers have quit the game? Their wounded pride won’t allow them to say that Stockx is the primary reason why. Nike has enough outlet locations to compete with retailers so on all facets , retailers can’t catch a break…
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