Nike reportedly intends to stop selling to six other wholesale accounts — DSW, Urban Outfitters, Shoe Show, Dunham`s Sports, Olympia Sports and Big Five — as it increasingly focuses on direct-to-consumer (DTC) commerce and leaves ”undifferentiated” wholesale accounts. In the future, Nike`s strategy and tactics will be taught as a great example not only of brand building, but also as an example of agility and adaptability in the changing dynamics of the market. So, of course, they will make adjustments in the future. That`s what they do. And if they lose a little business in the short term, it`s much more important to protect the brand in the long run. Several brands and retailers could take a lesson here. Nike has gone from a retail model to a multi-channel sales model in a stunning display of strategic finesse. It started by pushing retailers, opening their own stores, launching big digital initiatives, building community and developing gigantic brand value. All of this came together to allow Nike to virtually dictate the pace of transformation of its sales channel mix. This is a smart and long-awaited decision (probably due to contract flights). It`s easy because today`s customer has so many options, including the amazing website that Nike has.

In my opinion, it`s just not that important not to be in some outdated physical places – at least not for Nike, which holds all the cards in hand. It also gives more credibility to their own businesses, which, unlike many other dying brands, are still a viable option for them, especially now. DISCUSSION QUESTIONS: Is Nike at risk of no longer reaching certain customer segments or regions with its direct-to-consumer pivot and some ”strategic” wholesale partners? Do you think Nike needs to make adjustments along the way (if so, of what type)? The slaughter is the next step in Nike`s Triple Double Strategy (2X) growth plan, which was announced in 2017 when the company promised to double its ”pace and impact on innovation,” double its speed to market and double its ”direct connections” with consumers. I bet the company will change this strategy in about three years and someone will lose their job. It`s okay to order online once you know how a shoe fits, but their products have a fairly short life cycle. The last time I found a pair that fits me well, I bought as many as I could (mostly on the gray market) because I couldn`t bear to find another style that worked and didn`t really want to go to Lincoln Road, where their store is (which is another story for another day). Nike officials have also regularly highlighted the importance of certain retailers, including Dick`s Sporting Goods, Foot Locker and Nordstrom in North America, working with the brand on unique in-store concepts or promoting member loyalty. Not every company is willing to take such a bold step.

However, I feel like Nike has a lot more to gain than to lose with this latest pivot. The decision to cut off competing sporting goods retailers seems like a bow for Dick`s. Well, Big 5 runs hundreds of miles from a Dick`s in many small markets. So, with this step, you will lose access to many consumers in small markets. If you sell new sneakers, the first logical plan would be to get a wholesale account with the best brands like Nike, Converse, Adidas, New Balance, Puma or Under Armour, but if you can get an account depends first on where you want to sell these sneakers. 35 Comments on ”Nike Says Goodbye to Long-Time Wholesale Partners” Anyone can sell Nike products, but if you want to use the Nike brand in your store and advertising, you need to become an authorized reseller. The process is pretty straightforward, provided you have a retail store that offers items that go well with Nike products. Nike is one of the most recognizable brands in the world and has been selling sneakers, sportswear, sportswear and accessories since its inception in 1971.

Last year, Mr. Poser announced that Nike was ending its relationship with nine accounts: Belk, Bob`s Stores, Boscov`s, City Blue, Dillard`s, EbLens, Fred Meyer, VIM and Zappos. The brand has also cut many small independents. By restricting their distribution network of wholesale partners, a level of convenience and accessibility is lost. Perhaps Nike`s most loyal fans will follow the brand wherever they are. However, those who are more value-conscious may find the most affordable and accessible alternative at their favorite shopper or shoe stores. Not all sneaker companies have an online application form. If the shoe or sports company you want to sign up with doesn`t have one, you`ll need to call them. To inquire about a reseller account with Adidas, you can call the company at 971-234-2107.

If you want to sell Converse sneakers, you`re out of luck. Converse is not currently accepting new applications. In addition, the latest change allows them to keep control over the customer relationship, thus avoiding the destruction of brand value through 3rd party discounts. Nike and Adidas already prohibit wholesale customers from selling their products on eBay or Amazon. It will be fascinating to see how this develops. This approach disrupts and changes the long-term partnership between wholesalers and retailers. Their statements seem to me as if they are pursuing absolute control – over the brand, sales and customers. And they are willing to tolerate only retailers who play with them.

All others will be excluded. So far, I`d say it works for them, but I guess they`re playing a long game here and are willing to suffer initial losses from places like Macy`s and Urban Outfitters. On the other hand, my last pair of Nike shoes was bought from Olympia Sports as part of a sale, otherwise I wouldn`t have bought them. I don`t have a Nike store near me, so are they willing to leave me as a customer? One of the most important things you need to know is that Nike is a brand. This is integrated into their vision and core mission. As they continue to look for new ways to grow the brand, it is crucial for them to protect their brand. They see it in their growth of digital and physical DTC locations where they can control their branding. They have little control over how their brand is presented with their wholesale partners, so this decision makes them stronger, especially. If I`m Nike and my branding matters, as it should, do I want to be in low-cost retailers? No. In the fashionable trade? No.

At a retailer whose survival is anything but assured? No. In sporting goods? Only if they can support my products with expertise. If you plan to sell sneakers online, it will be almost impossible to get a merchant account with one of the best brands. This could change in the future, but in 2020 it simply won`t happen. Sneaker manufacturers already have their own websites, as do their main trading partners. So they`re just not interested in helping you compete with them online. If the wholesaler`s cuts are shaking up some communities, Nike needs contingency plans to reconnect with consumers who feel abandoned. Leveraging its key retail and DTC sales partners can help Nike restore its reach to these buyers.

Nike and Adidas are the undisputed superpowers in the sports industry, dominating the category and together generating sales of around £50 billion worldwide last year. The demand (especially for their sneakers) is so strong that retail retailers can make a fortune through wholesale access to the most popular new versions and use them as hero products to attract and retain shoppers. If you don`t already have them, you might want to wait until your store is ready to open. In the meantime, you can contact the other companies you want to work with. Note that any information you share with Nike or materials you upload will be provided to you with your consent that Nike may use such information in its discretion with a non-exclusive license. Nike doesn`t have to pay you to take your ideas and use them. .