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📉 Nike's $100 Billion Lesson: Why Physical Retail Still Matters I came across this video recently https://lnkd.in/guKEWaXZ Nike's market value has dropped by $100 billion since the last Summer Olympics. Their pandemic-era pivot to direct-to-consumer (online channels) and away from brick-and-mortar partners is backfiring. Recently, Nike reported a 2% decline in year-over-year sales, with a notable 8% drop in direct-to-consumer. While brands like ON, Asics, and Hoka gained ground by filling store shelves left by Nike products. While e-commerce is crucial, this shift overlooked an important thing: Many people, including me, still crave physical experiences, especially for products like shoes where fit and feel are essentials. A balanced approach is important. While digital innovation is essential, don't underestimate the power of physical experiences to build brand loyalty and drive sales. Not just for physical products, but also services. What's your take?

⚽ As the Euros 2024 concluded⚽ This post showcases how companies like Nike and Adidas capitalize on the trending football discourse from a branding perspective.

The Power of "Just Do It": Nike is a global powerhouse, raking in over $50 billion annually. But this success story wasn't built overnight. It took years of dedication and a powerful message: "Just Do It." This iconic tagline wasn't born a giant but the seemingly simple phrase resonated deeply with athletes and everyday people alike and became a rallying cry, an encouragement to push past limitations and chase your goals. The story of "Just Do It" is a testament to the long-term impact of consistent messaging. It shows how a well-crafted tagline can become the cornerstone of a brand's identity and fuel billions in revenue. Here's a glimpse at the very first ad featuring "Just Do It" from way back in 1988 👇 https://lnkd.in/eau7Yqft #nike #justdoit #marketing #branding #advertisinghistory Advertising 101 Course: https://lnkd.in/es3Bs-v3

When I saw the original post, I commented on it. I saw the commercial again yesterday while watching the Olympics, and I found the ad less likable. I am sharing my comment again, and I hope it will spark discussion. ---------- Being driven to be the very best is not a bad thing. The ad focuses on sports, which is a zero-sum game with clear winners and losers. If you take the exact same script and change the images to husbands, wives, children, and neighbors, it will not play as well. Most of life is not like sports. In order to be successful everyone we surround ourselves with needs to be successful as well. Life is not a zero-sum game. It is an infinite game.

Nike followed the data—and lost about $150 BILLION in market cap. Why? Because they failed to see data in context. The numbers showed that a huge D2C push just ahead of the pandemic had been a massive success, but failed to account for the role of the lockdown in forcing changes in buyer behavior. They also failed to understand the role of in-person shopping for both sneakerheads and the mainstream customer-base. When pandemic restrictions lifted, drunk on its own Kool-aid, Nike had cut ties with key distributors and had been replaced with smaller brands like ON and Asics. In other words, Nike followed the data and completely missed the point. How often do we feel false confidence that we're "data-driven" while merely measuring what is easy to measure? So much of the picture can't be captured with big data—it requires thick, contextual data. Where else have you seen someone follow the data and miss the point? Chime in below 👇 https://lnkd.in/g_zqFK4M

A competitive mindset can significantly impact success by driving individuals to strive for excellence, overcome challenges, and continuously improve. It fosters resilience, determination, and a focus on achieving goals, which are crucial traits for personal and professional growth. #management #ceo #leadership #marketing #humanresources #director

Nike's "Winning isn't for everyone" campaign, with its conflicted inner voice asking "Am I a bad person? I am selfish..." isn't just stirring consumers. It's sending ripples to customers, like us, and to the entire supply chain and beyond. As a parent, I'm wondering, "Am I working three shifts to instill a toxic 'just do it' mindset in my kids?" Suppliers' POV: "We're pushing our workers to the limit to meet Nike's demands. Now this ad makes us wonder - are we the bad guys here? Are we enabling a toxic mindset to our society?" Factory workers: "Winning isn't for everyone? Tell us about it. We're barely surviving while making your products promoting this cutthroat mentality." Competing brands: "Is this the new normal? Do we need to match this aggressive tone to stay relevant?" Sports organizations: "We're trying to promote fair play and sportsmanship. This message... complicates things." Mental health professionals: "Great, more people questioning their self-worth based on winning or losing. Just what we needed." Environmental activists: "Winning at all costs? What about the cost to our planet?" Nike's "Hero" brand is looking more like an anti-hero, leaving everyone questioning their role in this narrative. The irony is thick here. Nike, the brand that's supposed to embody the "Hero" archetype, is now peddling a message that sounds more like a villain's manifesto. It's like watching Superman decide that, actually, world domination might be kind of fun. Don't get me wrong, I get it. Winning feels great. But last I checked, true heroes inspire others to greatness, not just themselves to the winner's podium. They embody values like perseverance, teamwork, and pushing beyond limits for a greater purpose. This campaign? It's giving more "lone wolf with a superiority complex" vibes. Brands, tread carefully. Controversy sells, but it might not age well. There's a fine line between motivational and just plain mean-spirited. #BrandStrategy #RedefiningSuccess #BrandIntegrity #NikeAdDebate #WinningIsntEverything #Advertising #MarketingStrategy #EthicalSuccess #GlobalImpact #RedefiningVictory #CorporateResponsibility Follow Kwan Harsono for brand and marketing strategy and insights.

This is a very interesting case study on how Nike hit an issue when it tried to go more Online & E-commerce. By removing from Retails, it give opportunity to other Brand/ Competitor.

Not every digital transformation has a happy ending. Damage has been done to long-term reseller relationships, and competitors are catching up. Nike's current situation provides a valuable business case study, examining the differences between sales channel relationship building and direct-to-consumer approaches. The 7-minute video on this topic is definitely worth watching. https://lnkd.in/g2BZHRvk

How to strike a good balance between DTC and channel approach is always a challenge for businesses