Nike is preparing to build the market of the future, reports PYMNES. The brand has entered the second phase of its go-to-market strategy, executives said on a Monday conference call, including an increase in direct-to-consumer (D-to-C) sales through Nike Direct and a reliance on reduced to its retail partners. . During the call, CFO Matt Friend said Nike was “finished communicating key account pivots,” noting that wholesale partners will play a critical role in authenticating its brands and building value. a scale of distribution via a larger retail footprint, albeit within a company that is constantly, and deliberately, leaning towards digital.
Total retail catch: Nike continues to remain aggressive in transforming its business. The sports brand is delivering on previous promises to focus heavily on its D-to-C and digital businesses, most recently acquiring virtual sneaker company RTFKT in a bid to enter the metaverse. Nike has pulled out of several retail partnerships over the past few years, including DSW, Urban Outfitters, Macy’s and other major wholesalers. It’s betting on the power of one’s own business quarterly results which report NIKE Direct sales up 15% and NIKE Brand Digital sales up 19%. “NIKE’s strong results this quarter demonstrate that our Consumer Direct Acceleration strategy is working, as we invest to realize our growth opportunities,” noted President and CEO, John Donahoe.
One of Nike’s primary concerns is controlling the customer’s experience with the brand, both across its own physical and digital channels as well as its other retail partners. “This will require us to invest with our partners in their consumer experiences so that the consumer has a premium and consistent experience as they move through the market and can find Nike products when and where they want,” said declared Friend. With Nike’s impressive roster of influential athletes and strong brand recognition, the retailer is betting it can cash in on its own terms.
