NIke’s direct-to-consumer plans at risk

By Oregon Small Business Association Foundation,

A market analyst described the direct-to-consumer e-commerce focus of Nike combined with its plans to open more brick-and-mortar stores as missing the mark. The Portland Business Journal reported that Spurwink River retail advisor Matt Powell sees ongoing challenges for the Portland-based footwear manufacturer as it tries to sell its inventory, which was up 43 percent in the second quarter after rising 44 percent during the first quarter. While slashing prices can move the product, customers who grow used to the lower prices may balk at paying more later. He recommended Nike promote its brand and develop new products. But while other analysts see potential growth in the Chinese market, Powell pointed to that country’s anti-Western attitudes and noted that the Chinese company Anta Sports Products surpassed Nike for the first time last year in shares of the market.

Fortune also laments Direct-to-Consumer problems recently, “2021 saw a marked dip in consumer interest in the DTC category. 69% of Americans said they expect to make at least one purchase from a DTC brand–down from 79% the year prior. And 60% of Americans said they had already made DTC purchases in 2021, down from 70% in 2020.”

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