Nike made some of the worst visually appealing football jerseys this season. On the other hand Adidas has made good jerseys for winning clubs/country like Real Madrid, & Spain. Also Indian cricket team which won World Cup. Going deep into tournaments & winning finals mean more eyes on the particular team’s jerseys.
I dont like nike but wearing adidas since 2012. Right now I have 3 adidas 1 sketchers. 2 mochi and 1 louis philippe. And yeah 1 snow boots from decathalon.
Finally, I understand properly why Nike's stock price fell. I have seen so many foreign TH-cam videos but your video is the most detailed and in-depth.
I really dont know who is buying from Macys and foot locker most of their stores are being shut down..... I 100% agree what NIKE is doing is absolutely correct and the only thing Nike is falling is inventory issue that was created during lockdown and the other biggest thing is competitors have been increasing day by day. I myself have been trying other brands
Also they need to give some discounts or special offers if they are trying to capture a lot of customer segments. They aren't targeting a niche customer segment who could easily buy shoes on whatever prices Nike sets. When there is a lot of competition you not only need a strong brand image but also provide some incentives to your customers.
Nike's downfall is due to the poor durability of their shoes. Plus they increases the prices so high while make customers wait in queue at shop or login to one of their website late at night for their so called "Limited drops". Also the mentally deranged sneakerheads who collect shoes didn't help.
This is what I believe to be the case as well. They're just not good enough quality or performance, especially for the price they're charging. I own both Hoka and Asics shoes and they're way better in terms of performance than what the best of Nike had to offer. While being less expensive to comparable models too. A great d2c strategy is clearly pointless if your products just aren't as good anymore.
@@head_honcho192 you are lucky, my old Nike shoes lasted a really long. But after 2018 their quality was going downhill every time I bought one. Adidas usually lasted longer. But for me Asics, New Balance and Hoka were most durable.
@@dalmeow Yup none of my shoes from Nike were durable. In fact I found them to be a bit uncomfortable too. While my Asics and New Balance are not only durable but comfortable as well.
Haters be hating but Nike still makes the best shoes. Yes there are limited drops but they also sell the most cutting edge shoes for every sport that are not limited. Even if you want a walking shoe- there's noting better than zoomx shoes. What's the model of the shoe you used and what NB or Asics model are you comparing with? Nike hasn't had a downfall, stocks fall and rise; even in that a 20% drop. It's fine, what business doesn't make mistakes? Nike as a brand, as sports tech org, as shoe design org is still going strong, just ask their athletes across sports. EDIT: I own like 60 pairs of Nikes and I'm not deranged. Prove me wrong.
I think another big reason was moving production to China, and not safeguarding their design like Apple. So many knockoffs surfaced from Chinese producers. With the DTC set up, the accessibility to consumers become reduced and it took the product away from average consumer. Its product design also appear flimsy awful.
I have owned a Hoka and presently own an On. Hoka was very comfortable and On is literally their name On-cloud! Both were better than various Nike’s I have owned over decades!
Nah that's not the only reason, Shoe resellers have ruined them, they are the real culprits, plus their good shoes are getting costlier out of average people's reach. Plus the raise of other affordable brands has really hit them hard. 😂😂😂😂😂😂
@@sir_prize_ma_the_farcar4547 shoe resellers are the main reason that Nike is having the premium stamp. Did you see any other brands that didn’t collab with Nike adidas or some big giants having that premium valuation in this market
Thanks for the video when my father show me the first business case study i was surprised than i started watching your video and i am the future entrepreneur and plz make more video case study of lot of brand👍👌
"3 tigada kaam bigada.." This line also can be a reason for NIKE down fall because where Nike Market is falling, decathlon is growing because they are providing better values to customers where Nike is not ensuring customers time and value
I think the decline has also to do with increasing competition with new brands offering amazing designs at lower price. Then there is the rise of Pop culture. Nike was always about athletes. You don't see them promoting celebrities other than athletes. While this is commendable to stay true to yourself, it's also important to acknowledge that there is a shift in consumer preferences and it's important to have a sub-brand to address that gap.
Present buddy ❤ From the case study 'Understanding Nike'(3 years ago) to this, lucky to have found you so early. Thank you both of you for making a difference. Ye Dil Maange More❤
One more major benefit of D2C is eliminating the risk of buying fake products. Imagine spending 100s of dollars on a pair of shoe you bought from some store or online website like amazon, only to later realize it was fake, badly damages the brand reputation. So i think even if this hits their business, although there are many other reasons for this too. In the long run D2C will help keep their brand image strong and exclusive which will make them a more stable business.
ghanta...D2C is still profitable...just that it had to be aggressive during lockdown for 2 years on D2C and cut down retailers as stores were closed / people are not going to stores. once everything is back up now Nike is doing business with retailers too.
Your "How Dell killed IBM ?" case study should be linked to this video on how D2C when combined with just in time production is successful whereas for products like Nike it is not. Beautiful insights from both the video. Loved it :)
The video was extremely insightful as always!! Moreover, being a B-School student of Marketing, the takeaways in this video were a direct application of the lessons I am learning in the classroom. Thank you very much for this wonderful video!
The best video and explanation that I've come across detailing the DTC model and some of the reasons for Nike's share price woes. It's quite amazing to see the doom and gloom stories of Nike being finished and it's the end of them. They're still the largest sportswear and shoe company worldwide. Excellent video and commentary.
love all your videos. this as well.. as a business perspective.. but as a sneaker head I'll tell you 3 more things happened due to which there is a fall in nike sales.. 1) nike sneakers mostly air Jordans were not living up to the hype as there were no brand new ideas and stories rather they were re-releasing the older designs which were limited pairs before.. so the supply raised and demand fell. 2)other sneaker companies are giving tough competition like Adidas originals ,new balance etc.. and people are now opting for them.. nike was more about aspirational products and exclusivity which had them sell out everything in seconds. 3) JORDANS as a brand is now falling off and new entrants like travis Scott and more have not lived up to the hype of air Jordans. more rookie basketball players have joined Adidas. Adidas is heavily investing into the marketing and its giving nike a tough competition.. nike was a athelete's thing before and they marketed like that but now things have changed. kindly make an extensive video on the whole sneaker market concept which is a very hard to crack market for new entrants where india is now literally going up with some of the Indian brands going up.
In my opinion, the reason they're doing poorly is because their products are all hype and no substance lately, while costing an exorbitant sum. The leather on the current Jordans and Air force 1s are the cheapest and worst quality if you look at reviews. They don't last at all, and I've personally faced this with my Air Force 1. When it comes to running shoes, I own both Hoka and Asics shoes and they're way better in terms of performance than what the best of Nike had to offer. While being less expensive to comparable models too. A great brand name and amazing d2c strategy aren't going to be worth shit if your products just aren't good enough.
Dude yea, but that may affect customer choice of a few; not the overall bottom line in the short term... If quality is everything, then Pepsi, Coke, Kraft-Heinz etc. should not be doing that well... And the Jordans and Air force one are bling, basketball shoes (consumer dispensable)... they have more staple products in their catalog like basic running shoes... But yes, what you say has merit, IMHO as an investor in the company (I own a few shares), I would like to see inorganic growth... The market and consumer choice is a lot more fragmented today... there is hiking shoes, ultra cushioned shoes like Hoka and On, Barefoot shoes, minimalist running shoes etc...
Men You are making damnn good content, As i am aspirant of Data field i got to know how Data is important to Nike, and based on which Nike has changed it's strategy, However it's not succeeded as wanted as they unware about consequences, Man worth watching this channel 🌟
Nike raised prices like crazy, retailers would generally offer discounts, Nike doesn't do it that way.. I have bought over 5-6 pairs of nike a year during the covid times, but since last year I have bought about 3 only..
Ganesh, you missed a major "superpower" of a D2C model, one that heavily affecting margin. By knowing sales data directly from the consumer, Nike avoids the "Bullwhip effect" or the need to cater to lumpy demands from these wholesale retailers. Nike can reduce inventory levels and produce enough of only what the demand is. And thus they do not have to push their shoes out at a discount as much. This also has an effect on what the consumer sees on the shelves, the latest assortment or models running from two, three years ago sold at big box discount shoe stores across the USA (Eg. DSW)...
👉Join the Retire Early Masterclass now at 50% discount bitly.onepercentclub.io/retireearlymc (The Masterclass is going to be in English) youtube.com/@onepercentclub12?si=iGkac_6DPcJUnH5v
@@subhankar5615 such in depth micro economy example is of no use in essay. Use your time wisely. I was like you, wrote mains 4 times and never got to interview because i lacked focus.
They can reduce the cost of stores, it is not mandatory and it will not reduce the brand value if they have a small store. but it will reduce the cost of store and nike can be profitable by just selling 100 shoes/month and still run the store. It is great to have a futurist store for brand value but not mandatory to have every store in that way.
It’s hard to argue convincingly for a significant decline in NIKE’s performance. Here’s why: 1. Recession Impact: If Nike faces struggles, it would be largely due to the economic downturn. Recessions hit most companies hard, and yes, Nike might see losses like many others in these challenging times. 2. D2C Transition: Nike’s move to direct-to-consumer (D2C) is a smart strategy. Big shifts like this take time for consumers to fully adapt, but D2C could pay off in the long term. 3. Growth Plateau: Every large company eventually hits a saturation point where growth slows. At this stage, innovation becomes harder, so companies focus on stabilizing and maintaining their market position, rather than rapid expansion. 4. Revenue Growth: While Nike’s revenue and sales are still growing, the rate of growth has slowed compared to previous years. This can be seen as a retracement rather than a long-term decline. 5. Historic Performance: Since 2017, Nike has delivered a 300% return. Expecting a huge drop, like a 60% fall, seems extreme considering this track record.
There's also a fact that since Nike is not available on any shoe wholesaler/retailer, Nike has to spend more on marketing so that people know about it's app and buy from there or from its stores. Also by keeping higher prices on its website and stores, Nike wanted to position itself as a premium brand, but if people wanted to buy premium running shoes, they would definitely choose Under Armour over Nike. The only premium quality shoes that Nike actually has is the Jordans. And they too are only premium because of the look, hype and marketing.
one more thing is the shift of nike's brand image, ive seen people in social media talk about the streetwear trend ruining their design and comfort and people hate it. Some believe it no longer connects with people through storytelling. Not to forget some hideous designs they have been selling.
We used to go bonkers for nike shoes but when a friend of mine bought nike cricket shoes worth rupees 4800 in 2015 it only lasted for about 6 months. It was comfortable, light weight and agile but soon its bottom part broke. Slowly slowly the grace and the durability of the shoes vanished. That's when we all switched to Puma which is affordable, durable, comfortable and stylish.
@@CaNiravPanchal reeboks are also superb have used them a lot especially while playing cricket, but they are little heavy compared to Puma cricket shoes. Otherwise it's running shoes are as good as any. Great brand.
Think School you are winning hearts day by day with your brilliant case studies and analysis , thanks to god i was born in the era when think school has a youtube channel.Hats off to ganesh bhai , parsh bhai and their brilliant team🛐
Went to a Nike store in Los Angeles few months ago. Dude the queue was more than a mile long and people still waited and bought Nike. So yes they might have got a setback but the brand still has a superior demand compared to any other brand.
The arguement points are fair but one major bias point was not discussed was in a wholesale model the supplier has to extend some form of credit to the wholesaler/customer. As in all american firms there is always a risk of the customer going bust. But in a direct to consumer model its either goods on my premises or cash in my account. Probably nike has to find the equilibrium point of both.
Please do a case study on the business scenario in India... In a state-wise manner... Which businesses will flourish and which will fail for budding entrepreneurs... This could be a part of a series... Please highlight my comment if you do 😝
Nike's DTC strategy is a game-changer, boosting loyalty and revenue through digital innovation. Despite competitors and wholesalers trying to push back, Nike's agility and strong customer connection keep them ahead. #Nike #DTC #ThinkSchool
Firstly I love your videos it really gives me insides regarding my career approach despite not being from business subject. Can you make a video on the pharmaceutical economy ?
Hi bro i am a huge fan of your videos,from your videos I have gained lot of knowledge about business , could you please do a video on a agri-tech business model
The other thing about nike is that people back then wanted to connect with their idols like Michael Jordan and one way was the air Jordans as there was no social media back in the days... But nowadays with the boom of social media, people have found new ways to connect with the stars and buying shoes is just a "waste of money"... As people nowadays are more focused on creating their own identity rather than following others... Nike could turn more profitable once it focuses on becoming the new LV and catering to the rich and richer...
Here what I think is Nike shouldn't switch back to wholesale model but it can stay on d to c and reduce all obstacles by out sourcing and to reduce operational cost they can use franchise model
Thank you for your amazing content 🙏 Please do consider making a video on environmental issues in India and climate change. It is the need of the hour to educate people and make them aware about the upcoming challenges of the world.
One reason for the recent decline in stock price is the weaker outlook and guidance. The company forecasted a 10% decline in their revenue generation in recent earning. According to other analysts' revenue forecasts for 2025, the company is set to see a decline in their revenue generation, but in the long run, the company can have a recovery in its earnings.
As an MBA student, these videos are such a treat! I watch them on my way to college
Nike made some of the worst visually appealing football jerseys this season. On the other hand Adidas has made good jerseys for winning clubs/country like Real Madrid, & Spain. Also Indian cricket team which won World Cup. Going deep into tournaments & winning finals mean more eyes on the particular team’s jerseys.
Bro forgot World cup champions Argentina 😂❤️🔥
Nike quality sucks as well, Adidas is picking up n good ones too.
@@shivshankardash8248Making an appealing jersey won't win the contract. Anyway the funniest comment. Good luck
QQ q😮😢
I dont like nike but wearing adidas since 2012. Right now I have 3 adidas 1 sketchers. 2 mochi and 1 louis philippe. And yeah 1 snow boots from decathalon.
Case study on Apple will be worth it
Yes much needed
The reasons u hv givn is related to mismanagement often happen with big brands for not noticing everyday sales
THe very basic thing is, people would like to try a shoe before buying. Having stores in every place is not possible which creates another problem
he discussed it i guess
Finally, I understand properly why Nike's stock price fell. I have seen so many foreign TH-cam videos but your video is the most detailed and in-depth.
I really dont know who is buying from Macys and foot locker most of their stores are being shut down.....
I 100% agree what NIKE is doing is absolutely correct and the only thing Nike is falling is inventory issue that was created during lockdown and
the other biggest thing is competitors have been increasing day by day. I myself have been trying other brands
Also they need to give some discounts or special offers if they are trying to capture a lot of customer segments. They aren't targeting a niche customer segment who could easily buy shoes on whatever prices Nike sets. When there is a lot of competition you not only need a strong brand image but also provide some incentives to your customers.
Yes this is absolutely true……
Nike's downfall is due to the poor durability of their shoes. Plus they increases the prices so high while make customers wait in queue at shop or login to one of their website late at night for their so called "Limited drops".
Also the mentally deranged sneakerheads who collect shoes didn't help.
my all nike shoes lasted longer than the adidas ones tho
This is what I believe to be the case as well. They're just not good enough quality or performance, especially for the price they're charging. I own both Hoka and Asics shoes and they're way better in terms of performance than what the best of Nike had to offer. While being less expensive to comparable models too.
A great d2c strategy is clearly pointless if your products just aren't as good anymore.
@@head_honcho192 you are lucky, my old Nike shoes lasted a really long. But after 2018 their quality was going downhill every time I bought one. Adidas usually lasted longer. But for me Asics, New Balance and Hoka were most durable.
@@dalmeow Yup none of my shoes from Nike were durable. In fact I found them to be a bit uncomfortable too. While my Asics and New Balance are not only durable but comfortable as well.
Haters be hating but Nike still makes the best shoes. Yes there are limited drops but they also sell the most cutting edge shoes for every sport that are not limited. Even if you want a walking shoe- there's noting better than zoomx shoes. What's the model of the shoe you used and what NB or Asics model are you comparing with?
Nike hasn't had a downfall, stocks fall and rise; even in that a 20% drop. It's fine, what business doesn't make mistakes? Nike as a brand, as sports tech org, as shoe design org is still going strong, just ask their athletes across sports.
EDIT: I own like 60 pairs of Nikes and I'm not deranged. Prove me wrong.
Nice video editing
Loved the flow and understanding
This channels graphics are second to none. As a visual learner, its game changer
Companies in my country did D2C but didn't cut ties with their retail partners, because their D2C sales are small compaired to those from retail.
I think another big reason was moving production to China, and not safeguarding their design like Apple. So many knockoffs surfaced from Chinese producers. With the DTC set up, the accessibility to consumers become reduced and it took the product away from average consumer. Its product design also appear flimsy awful.
Classic Thinkschool business case studies are back! Super insightful and look forward to more such case studies!
I have owned a Hoka and presently own an On. Hoka was very comfortable and On is literally their name On-cloud! Both were better than various Nike’s I have owned over decades!
True that is. Both are practical and provide better foot stability compared to Nike.
Wow What a Coincidence !
Currently I'm Reading the 'Shoe dog' and This video Shows Up .
It's not a coincidence...! Welcome to digital era.
same man
they reading your mind, stay woke.
@@Beanboy-fx1qybro I Started reading This book 20 days ago
And I subscribed to him
No One is reading my mind 🙂
There are no coincidences, i swear Google hears you all day long.
Nah that's not the only reason, Shoe resellers have ruined them, they are the real culprits, plus their good shoes are getting costlier out of average people's reach. Plus the raise of other affordable brands has really hit them hard. 😂😂😂😂😂😂
@@sir_prize_ma_the_farcar4547 shoe resellers are the main reason that Nike is having the premium stamp. Did you see any other brands that didn’t collab with Nike adidas or some big giants having that premium valuation in this market
slightly disagree. competition is becoming tougher. On Running, Li-ning, Peak, Asics and even Puma are targeting premiere customers.
Thanks for the video when my father show me the first business case study i was surprised than i started watching your video and i am the future entrepreneur and plz make more video case study of lot of brand👍👌
"3 tigada kaam bigada.."
This line also can be a reason for NIKE down fall because where Nike Market is falling, decathlon is growing because they are providing better values to customers where Nike is not ensuring customers time and value
HAS TO BE THE BEST EP, WELL DONE!!!!!!!
I think the decline has also to do with increasing competition with new brands offering amazing designs at lower price. Then there is the rise of Pop culture. Nike was always about athletes. You don't see them promoting celebrities other than athletes. While this is commendable to stay true to yourself, it's also important to acknowledge that there is a shift in consumer preferences and it's important to have a sub-brand to address that gap.
Present buddy ❤
From the case study 'Understanding Nike'(3 years ago) to this, lucky to have found you so early.
Thank you both of you for making a difference.
Ye Dil Maange More❤
One more major benefit of D2C is eliminating the risk of buying fake products. Imagine spending 100s of dollars on a pair of shoe you bought from some store or online website like amazon, only to later realize it was fake, badly damages the brand reputation. So i think even if this hits their business, although there are many other reasons for this too. In the long run D2C will help keep their brand image strong and exclusive which will make them a more stable business.
Another top quality video 👏🏼👏🏼👏🏼
ghanta...D2C is still profitable...just that it had to be aggressive during lockdown for 2 years on D2C and cut down retailers as stores were closed / people are not going to stores. once everything is back up now Nike is doing business with retailers too.
D2C strategy also includes avoiding digital platforms like Amazon. Nike doesnt sell any shoes on Amazon for example.
Profit and profitability are different things brother...
In a brand as big as Nike, the first one matters for shareholder's value...
The episodes are extremely informative.
Waiting on the podcasts ❤
3:35 real content start
Your "How Dell killed IBM ?" case study should be linked to this video on how D2C when combined with just in time production is successful whereas for products like Nike it is not. Beautiful insights from both the video. Loved it :)
this is a classic thinkschool video.. that i have subscribed for ❤
The video was extremely insightful as always!! Moreover, being a B-School student of Marketing, the takeaways in this video were a direct application of the lessons I am learning in the classroom. Thank you very much for this wonderful video!
The best video and explanation that I've come across detailing the DTC model and some of the reasons for Nike's share price woes.
It's quite amazing to see the doom and gloom stories of Nike being finished and it's the end of them. They're still the largest sportswear and shoe company worldwide.
Excellent video and commentary.
So much to learn from each case study, I wish if think school can increase their frequency of video releasing.
love all your videos. this as well.. as a business perspective.. but as a sneaker head I'll tell you 3 more things happened due to which there is a fall in nike sales..
1) nike sneakers mostly air Jordans were not living up to the hype as there were no brand new ideas and stories rather they were re-releasing the older designs which were limited pairs before.. so the supply raised and demand fell.
2)other sneaker companies are giving tough competition like Adidas originals ,new balance etc.. and people are now opting for them.. nike was more about aspirational products and exclusivity which had them sell out everything in seconds.
3) JORDANS as a brand is now falling off and new entrants like travis Scott and more have not lived up to the hype of air Jordans. more rookie basketball players have joined Adidas. Adidas is heavily investing into the marketing and its giving nike a tough competition.. nike was a athelete's thing before and they marketed like that but now things have changed.
kindly make an extensive video on the whole sneaker market concept which is a very hard to crack market for new entrants where india is now literally going up with some of the Indian brands going up.
True. Also, Adidas is now way ahead in performance to price ratio compared to nike in every price range.
Great video brother!❤
Great job on video editing & very well explained!
Awesome analysis about Nike’s temporary struggling.
Lovely! I love the point of Loyalty by perception and Loyalty by design.
Yes I agree with you..brand loyalty has its own ifs and buts
I am in total love with this channel. Just brilliant stuff as the time goes. Can't thank you enough for these videos.♥
Greatest TH-cam channel a 100 percent education with not less than entertainment that not bored us. Great channel wowwww
Knowledgeable, Interesting Inputs!
In my opinion, the reason they're doing poorly is because their products are all hype and no substance lately, while costing an exorbitant sum. The leather on the current Jordans and Air force 1s are the cheapest and worst quality if you look at reviews. They don't last at all, and I've personally faced this with my Air Force 1. When it comes to running shoes, I own both Hoka and Asics shoes and they're way better in terms of performance than what the best of Nike had to offer. While being less expensive to comparable models too.
A great brand name and amazing d2c strategy aren't going to be worth shit if your products just aren't good enough.
Dude yea, but that may affect customer choice of a few; not the overall bottom line in the short term...
If quality is everything, then Pepsi, Coke, Kraft-Heinz etc. should not be doing that well...
And the Jordans and Air force one are bling, basketball shoes (consumer dispensable)... they have more staple products in their catalog like basic running shoes...
But yes, what you say has merit, IMHO as an investor in the company (I own a few shares), I would like to see inorganic growth... The market and consumer choice is a lot more fragmented today... there is hiking shoes, ultra cushioned shoes like Hoka and On, Barefoot shoes, minimalist running shoes etc...
Men You are making damnn good content, As i am aspirant of Data field i got to know how Data is important to Nike, and based on which Nike has changed it's strategy, However it's not succeeded as wanted as they unware about consequences,
Man worth watching this channel 🌟
15:20 Reason behind downfall
Love your content! ❤
Please make one video on Mining Industry it would be really helpful 😀
I think there is already one
Brilliant and well presented
Great content, Great delivery, Great infomatics and presentation....
Excellent programme
Great intro 🔥
Very good topic,well explained too,Thanks think school
Nike raised prices like crazy, retailers would generally offer discounts, Nike doesn't do it that way..
I have bought over 5-6 pairs of nike a year during the covid times, but since last year I have bought about 3 only..
Brilliant video! Much appreciated.
Ganesh, you missed a major "superpower" of a D2C model, one that heavily affecting margin.
By knowing sales data directly from the consumer, Nike avoids the "Bullwhip effect" or the need to cater to lumpy demands from these wholesale retailers. Nike can reduce inventory levels and produce enough of only what the demand is. And thus they do not have to push their shoes out at a discount as much. This also has an effect on what the consumer sees on the shelves, the latest assortment or models running from two, three years ago sold at big box discount shoe stores across the USA (Eg. DSW)...
👉Join the Retire Early Masterclass now at 50% discount bitly.onepercentclub.io/retireearlymc
(The Masterclass is going to be in English)
youtube.com/@onepercentclub12?si=iGkac_6DPcJUnH5v
Best Case study for class 11th bst students ❤
Would love an episode on INTEL. It is very important topic
Good insights. Very informative yet another video.
Video quality is so bad even at 4k. Looks very blurry and soft. Watching on C2 oled. Why??
You never fail to deliver great content!!
Being an UPSC aspirant, I wait for your case studies for preparing my notes.
How is this even remotely relevant?
@@CMGM55examples in Essay writing
@@subhankar5615 🤦 It's not even philosophical 🤷♀️
@@subhankar5615 such in depth micro economy example is of no use in essay.
Use your time wisely.
I was like you, wrote mains 4 times and never got to interview because i lacked focus.
@@CMGM55 & u r still out of focus?
They can reduce the cost of stores, it is not mandatory and it will not reduce the brand value if they have a small store. but it will reduce the cost of store and nike can be profitable by just selling 100 shoes/month and still run the store. It is great to have a futurist store for brand value but not mandatory to have every store in that way.
It’s hard to argue convincingly for a significant decline in NIKE’s performance. Here’s why:
1. Recession Impact: If Nike faces struggles, it would be largely due to the economic downturn. Recessions hit most companies hard, and yes, Nike might see losses like many others in these challenging times.
2. D2C Transition: Nike’s move to direct-to-consumer (D2C) is a smart strategy. Big shifts like this take time for consumers to fully adapt, but D2C could pay off in the long term.
3. Growth Plateau: Every large company eventually hits a saturation point where growth slows. At this stage, innovation becomes harder, so companies focus on stabilizing and maintaining their market position, rather than rapid expansion.
4. Revenue Growth: While Nike’s revenue and sales are still growing, the rate of growth has slowed compared to previous years. This can be seen as a retracement rather than a long-term decline.
5. Historic Performance: Since 2017, Nike has delivered a 300% return. Expecting a huge drop, like a 60% fall, seems extreme considering this track record.
this entire business lesson was really worth studying
There's also a fact that since Nike is not available on any shoe wholesaler/retailer, Nike has to spend more on marketing so that people know about it's app and buy from there or from its stores.
Also by keeping higher prices on its website and stores, Nike wanted to position itself as a premium brand, but if people wanted to buy premium running shoes, they would definitely choose Under Armour over Nike. The only premium quality shoes that Nike actually has is the Jordans. And they too are only premium because of the look, hype and marketing.
yyyyeah wow 9 in a row on the demo and 4 in live. Thanks. Been waiting for something that finally works for me. I understand now how it works.
one more thing is the shift of nike's brand image, ive seen people in social media talk about the streetwear trend ruining their design and comfort and people hate it. Some believe it no longer connects with people through storytelling. Not to forget some hideous designs they have been selling.
We used to go bonkers for nike shoes but when a friend of mine bought nike cricket shoes worth rupees 4800 in 2015 it only lasted for about 6 months. It was comfortable, light weight and agile but soon its bottom part broke. Slowly slowly the grace and the durability of the shoes vanished. That's when we all switched to Puma which is affordable, durable, comfortable and stylish.
I am Reebok fan.
Durable, affordable, comfortable.
@@CaNiravPanchal reeboks are also superb have used them a lot especially while playing cricket, but they are little heavy compared to Puma cricket shoes. Otherwise it's running shoes are as good as any. Great brand.
Very informative vid ❤
I am surprised by the Nike d2c strategy 😮 ❤ 👏👏👏
Just obsessed with ur thumbnails ❤.......
Think School you are winning hearts day by day with your brilliant case studies and analysis , thanks to god i was born in the era when think school has a youtube channel.Hats off to ganesh bhai , parsh bhai and their brilliant team🛐
Went to a Nike store in Los Angeles few months ago. Dude the queue was more than a mile long and people still waited and bought Nike. So yes they might have got a setback but the brand still has a superior demand compared to any other brand.
The arguement points are fair but one major bias point was not discussed was in a wholesale model the supplier has to extend some form of credit to the wholesaler/customer. As in all american firms there is always a risk of the customer going bust. But in a direct to consumer model its either goods on my premises or cash in my account. Probably nike has to find the equilibrium point of both.
Please do a case study on the business scenario in India... In a state-wise manner... Which businesses will flourish and which will fail for budding entrepreneurs...
This could be a part of a series... Please highlight my comment if you do 😝
Nike's DTC strategy is a game-changer, boosting loyalty and revenue through digital innovation. Despite competitors and wholesalers trying to push back, Nike's agility and strong customer connection keep them ahead. #Nike #DTC #ThinkSchool
Informative ❤
Awesome video. Thank you
Brilliant video!
Props to the editor
Nike destroyed themselves with high prices, limited availability, and simply rubbish designs.
Amazing ❤
How do you scrape topics i love how you present things but have always been intrigued by your choices of topics
Nice case study
Firstly I love your videos it really gives me insides regarding my career approach despite not being from business subject.
Can you make a video on the pharmaceutical economy ?
Really well explained...👍
Awesome content as always
Thanks for the informative video. . . .
Hi bro i am a huge fan of your videos,from your videos I have gained lot of knowledge about business , could you please do a video on a agri-tech business model
a detailed case study on Apple and its distribution would be great
Basic of business..
You can not do all..
Profit sharing helps you grow..
Great content & you explained so well that any layman or school kid can understand❤😊
Its just shoes.....yet people buy it like its gold
For some D2C products "Try and Buy" works better. Shoes is one the category. Therefore, for some D2C brands offline is not a choice - but a must.
Decathlon is currently running on a similar D2C model and I believe it will too soon see declining profits as some competitor comes up!
The other thing about nike is that people back then wanted to connect with their idols like Michael Jordan and one way was the air Jordans as there was no social media back in the days... But nowadays with the boom of social media, people have found new ways to connect with the stars and buying shoes is just a "waste of money"...
As people nowadays are more focused on creating their own identity rather than following others...
Nike could turn more profitable once it focuses on becoming the new LV and catering to the rich and richer...
Here what I think is Nike shouldn't switch back to wholesale model but it can stay on d to c and reduce all obstacles by out sourcing and to reduce operational cost they can use franchise model
Thank you for your amazing content 🙏 Please do consider making a video on environmental issues in India and climate change. It is the need of the hour to educate people and make them aware about the upcoming challenges of the world.
❤ amazing learning
One reason for the recent decline in stock price is the weaker outlook and guidance. The company forecasted a 10% decline in their revenue generation in recent earning. According to other analysts' revenue forecasts for 2025, the company is set to see a decline in their revenue generation, but in the long run, the company can have a recovery in its earnings.
Awesome evaluation
Not just a strategy, but Nike actually had exceptional quality product. I guess that didn’t matter much anymore as the competition caught up.
Good Job Nike. They will try hard to let you down via every way possible( Likes of YT content creators )but you are a long run winner.