Daily Insights

Nike Takes Command

By: Anshuman Rathore | Jan 16, 2020

With the arrival of 2020, the activewear giant Nike has made a significant change in its shipping policy. Reportedly, it is moving away from traditional retail partners and creating its own distribution channels for overseas shipments. The brand issued a notification forbidding its retail partners from shipping Nike products internationally, defined as “Outside their trade territory”.

Although Nike has not formally announced the move yet, retail partners are already reacting. Earlier, Attitude Inc, a streetwear and skateboard store, affirmed the move on its Instagram story. 

Nike’s new policy can be seen as a strategy towards having a greater hold on the distribution of products, but it could lead to a detrimental impact on those retail partners making profits from overseas selling of Nike items. Some retailers who strongly believe in Nike are optimists of the move as it could level out the playing field in terms of who is able to sell Nike products that were once deemed exclusive to only a few retailers. 

As such, the consequences are distinct for customers too, as they will no longer be able to access limited edition products with the ease they once enjoyed. Still, the decision does create a new opportunity for Nike to market its exclusive products in its own style. This, paired with the ability to have a tighter grip on consumer data and thus, more personalized services, could be turned into higher revenue, brand loyalty, and a strong sense of brand identity for Nike.

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