Nike Direct to Consumers

James Glover - October 3, 2013

Recon Thursday/Place

Hello, I’m Jim Glover, That Branding Guy for Once a Day Marketing™. Today is Recon Thursday and we looking at a recent report about Nike's Direct-to-Consumers (DTC) sales.

The Oregonian reported that Nike's direct-to-consumer sales, either through or their own stores, are on the rise. I'm sure Nike is pleased with these results as are the company's shareholders. What is the impact to other retailers who carry Nike products?

Nike shared with financial analysts that the gains generated in their own stores would translate into gains for the company's retail partners. This is an interesting statement as Nike DTC continues to capture more mindshare and related market share.

Nike contends that the more they learn to improve sales from DTC the more strategy and tactics they are able to share with Nike retailers. The company refers to the DTC process as a lab to gain knowledge around distributing their premium product to the marketplace. Nike does in fact have a history of assisting their retail partners like Dicks' Sporting Goods and Foot Locker with branding and marketing support.

From a branding perspective, I find it fascinating that Nike can build a DTC business and still enhance the stature of their brand with retailers. That's truly branding genius.

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