Nike running shoes have long been a staple in gyms and workout clubs for years, but recently the shoe company has lost its footing. In recent earnings, the company cited some of the worst sales growth they’ve seen in over 10 years.
Can Nike put itself back in the race?
Nike Is Falling Behind Competition
Nike has fallen behind not just with its running shoes, but in every aspect of its business. This year, the company has been extremely distracted and it’s costing them big time.
This year, the company has remained stagnant in its growth, spelling terrible news for the shoemaker.
TO PUT IT INTO PERSPECTIVE, NIKE SALES GREW 1% THIS YEAR… MAKING THIS THE WORST RESULT IN MORE THAN 20 YEARS.
Needless to say, investors were not pleased. Stocks dropped 20% in trading after the news broke.
Much to the company’s dismay, there are many factors that contributed to the less-than-stellar plunge in sales. One of Nike’s biggest markets, China, has been riddled with macroeconomic issues that lowered sales in that region…
The company’s Converse division has been slowing down…
And foot traffic in U.S. stores has been lighter than anticipated.
BUT ONE OF THE BIGGEST UPSETS NIKE IS DEALING WITH IS THE LOSS OF POPULARITY WITHIN THEIR RUNNING SHOES.
Nike’s running shoes used to be the top-of-the-line product that every runner couldn’t wait to get their hands (or feet) on. Yet recently, the company lost its grip on this highly-coveted niche due to its focus on other brand-wide initiatives…
Letting competing brands race to fill the gap.
Brands like New Balance, Hoka, and Brooks hit the ground running to try and win over customers that Nike had left hanging.
These brands started marketing aggressively, not just through traditional marketing avenues…
But on the ground by sending representatives to running clubs across the country to give shoe demos and engage with runners in person.
Nike has long faced criticism that the running shoes they were known for lacked innovation. Now, with runners flocking to other brands that have offered more of what Nike lacks…
The brand is going to need to change a few tactics to get back up on top.
How Nike Plans To Dominate Running Shoes Market Again
Executives at Nike know they made a mistake neglecting their running shoes.
The company’s chief executive, John Donahoe said it best…
“WE UNDERINVESTED IN THAT, AND THAT’S WHAT WE’RE REINVESTING IN,”
But how far does the company need to go to put it’s product back up on top?
Nike is debuting a new line of running shoes later this year, and executives have high hopes that the upcoming Paris Olympics will also boost sales.
Beyond their focus on new lines of sneakers, Nike is also reaching out to running clubs and marketing more aggressively to get their fans back…
And so far, its working.
The company still has a long way to go. In December, Nike debuted a plan that would cut company costs by $2 billion in three years. A two months later, the shoemaker started cutting jobs to refocus on their stabilization efforts.
At least Nike has good company. Adidas has also struggled in picking up sales this year.
Nike knows dominating running shoes and the market as a whole is not going to be easy. As the company’s finance chief, Matthew Friend, put it, “A comeback at this scale takes time…”
But if all of their efforts pay off…
Nike might still have a foot in the race.
Be Great,
GCTV Staff
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