The Growth Of Nike Direct Business Is Much Higher Than That Of Wholesale Dealers.

Nike's performance has gone up, but dealers are not happy.

Although the wholesale business for dealers has accounted for 74% of the total sales of Nike, the direct business growth of Direct to Customers (DTC) is much higher than that of wholesale, which makes dealers feel that their interests are threatened.

DTC direct business includes the online sale and flagship store of Nike official website. The newly released Nike 2016 Q2 financial report shows that Nike official website

An increase of 50% has contributed to the development of DTC, which accounts for almost 1/4 of the total business, compared with 18% only two years ago.

When you buy shoes at a flagship store in Nike, the shop assistant tells you that this is not your size. They will not use the old style of "pfer goods from other stores, you can look at it in two days". Instead, you will take a iPad directly and tell you that you can place your order from the official website.

Brian Shelton is the owner of a sports company, "he said in an interview." nowadays, all sports brands are selling themselves on the official website, and our customers are better off. Our value is decreasing every day.

In November, Nike's CEO Mark Parker said in a public statement that by 2020, the DTC business of Nike is expected to reach US $16 billion, accounting for 1/3 of the company's total revenue, which has deepened the anxiety of dealers.

Those smaller ones

In the past, it was already in a predicament because of the pressure of the electricity supplier. Now, we are worried about whether we can survive in the competition with Nike retailers.

In the demonstration of industry giants, many other sports brands have begun to strengthen their direct business.

In an interview earlier this year, Huang Xiangyan, senior communications director of Nike Greater China, said that the purpose of Nike's strengthening DTC business is to better convey the brand image to consumers, enhance the offline shopping experience, and also serve as a demonstration to distributors' stores. But dealers seem to be reluctant to buy this set of words. Their anxiety is also due to the long schedule of wholesale ordering process, so that these small businesses are at a disadvantage of "fashion".

Fashion tastes are changing rapidly, and the latest color matching of Nike is often difficult to appear in the dealer's shop in time.

But consumers will not manage these difficulties. They will only think, "why?"

There are some on the official website. Do you have any? "