Good Morning!
Hope everyone had a great weekend! I will get back to all of you on your comments very soon. I took a little time off from the blog to spend some time with family this weekend!
As usual, I was looking through my normal periodicals and noticed some great information that I could utilize on this blog. I found a great article from the WSJ on a business strategy that Nike is trying out recently. Nike uses retail stores to sell may of the items they produce. However, they have recently had success using their website, their catalogues, and their own super stores to sell those products. They are taking a more direct-to-consumer approach.
The company is looking to grow direct sales more than their wholesale transactions. In my opinion, this is a great strategy to take for the company to succeed in the future. The article quotes a small retail owner who states "“in this day and age, with all the athletic brands doing direct to consumer on their own websites, if customers ever start to view your store as just a place where they go and pick up an item, like they go to the grocery store to pick up a loaf of bread, your value in the equation is diminished”.
It is great for customers to have the option to go into a store to get the shoes or athletic gear they want. However, the value of going into that store has started to diminish, sort of like the value of groceries stores diminishing in recent years. More and more people are looking for alternative routes to get their items.
Again, customers are looking to save time and energy in today's hectic world. Nike is trying to stay on the offensive by creating a plan to deal with large amount of customers who want to buy items online and directly from the company. Most of business is headed this way regardless of the industry. It can be anything from athletic gear, medical supplies, or even groceries! Everything is being delivered, and directly shipped to the consumer.
Nike sees this change that is occurring with more and more people ordering directly from the company (statistics quoted in the article). Great plan! It looks like they should be able to execute if they stay on track! What do you guys think about this move??
Thoughts and/or comments?!?!
:) Jaymo
(I will answering comments on the blog later today!)
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