Money blog: Has the Nike trainer bubble burst?

Owned Money Blog is in the middle of news and proposals on their money and consumer demand. Please read our substances about Nike's fate on the weekend and comment on your own thoughts. Infa update will be updated later.

August 26, 2024 (Monday) 15:12, UK

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Did Nike's coach break?

Mark Wyatt (Money Blog Journalist

The sports slippers market has become more diversified and intensified, and the main players felt hitting themselves.

The new brand has attracted attention in the market, gaining its share, and at the end of June, Nike has expanded a record of promotional prices at the end of June.

During the night, the company's instructions were expected to resell in early 2025, and the company's market capitalization dropped $ 28 billion (21. 6 billion yen).

But why did this happen?

Nike is still one of the world's leading sports retailers and occupies a huge market share. However, according to experts, the company's strategic conclusions have helped to strengthen the negative trends of the company, as well as customer concerns and the emergence of new rivals. Say.

Strategy shift

John Donaho, who became a new CEO in Nike in January 2020, has updated the company's online business, and has been on the mission to increase profits from digital technology.

Donaho is from EBAY, one of the worl d-class giant electric trading companies, and immediately began to shift Nike focus to digital sales instead of streets.

Eventually, Cobits became exploded, and customers around the world had to stop online, regardless of their favorite.

People didn't walk in the room for work, so there was no need to buy dressy, official shoes. A comfortable and everyday shoe era has arrived, and Nike's advantage exceeded monitoring.

Donaho doubled his efforts, accelerated digital strategies, and withdrawn Nike from hundreds of shops.

Eventually, Nike broke on e-third of his relationship with business partners.

"Today's buyers are focused on digital technology and don't want to go back elementally," Donahoe said during a signal to benefit from 2020.

Nike believed that they were actually ready to communicate their own ideas to buyers, and they are not needed by retail networks such as Foot Locker or JD-Sports, which dilute it with middlemen.

However, when "Lokaudes" ended around the world, people returned to stores, and online sales slowed down, the conclusions adopted were called into question.

"I believe they underestimated the educational nuances of buying in stores as part of the public life of young consumers," said Daniel Herbal, who worked at Nike from 2017 to 20 on some of the biggest Coach Air Max and Jordans in an interview with Money Blog.

"Nike actually thought that people were fighting on the Internet and leaving the skill set of brick-and-mortar stores," he said.

"But once the shops started to open up new, public nuances of purchase, the nuances of association returned, but Nike wasn't there."

Nike started to break away from its own products, which faded from comparison with other brands.

Competitiveness and innovation

Of course, retailers, where Nike shoes occupied the most central space, started looking for other brands to fill this space.

Fresh brands appeared, such as Asics, Hoka, December One Outdoor, and Roger Federer-backed On.

And these companies started to show new ideas, especially in a corner of the top-performance running market that Nike had long monopolized.

Hoka's thick foam soles attracted runners' attention, and its well-known (and now patented) amortization system development proved to be a known among followers and experts, for example.

Some say Nike is also lagging behind in sports potential. Adidas' Samba and some Gazelle shoes, as well as New Balance's 990s models, became famous, with Chancellor Rishi Sunak wearing the Samba.

So where was Nike's innovation around this time?

The air cushions inside the soles of sports sandals, known as Air Max boots, were seen in 1978.

Helbal's lyrics say that the Flyknit fabric, introduced in 2012, was the last big innovation that allowed lifestyle brands to penetrate the market at a high price.

According to a selective survey on young people in the United States that Piper Sandler conducted earlier this year, Nike is still a winner, but he has been pushed by innovative brands such as Hoka and on, and has lost his "share of awareness". The idea was approved.

Nike accepts the case and seems to have announced the "Lon g-term innovation cycle" in April.

Two main claims

To recognize how the buyers relate to Nike shoes in 2024, then find another basement.

More than 10 years ago, this online group of streetwear enthusiasts is more than 150. 000 members from all over the world and is considered a noble expert in all street fashio n-Tasks and sports sandals. Cover.

I want to see if the sweat I bought on ebay is a vintage Ralph Lauren. Let's ask the basement. I want to start a personalized line of sunglasses for application, but do you need advice to open a small popular business? Let's ask the basement.

Are you looking for a buyer that will say that in 2024 you will buy Nike Sports Slippers? There is a reason.

When I asked a base member about Nike, almost all answered two questions.

The first is the cost, and it is hardly reached at the current situation only for those who have historically obtained from Masa to Nike's sports slippers.

Looking at Nike's website, you can hardly find fresh sports sandals at a price of £ 120. Most of the topical "sports sandals" costs £ 150 to 200 pounds.

These costs, such as the traditional model, Air Max 95, come from £ 174 and 99. Some are usually less than 130 pounds in cheaper options, such as Air Jordan 1, such as JD sports, size and ASOS.

"200 pounds are not considered affordable," said one of the underground members. "People have grown older and wise.

"I have been working in the shoe retail for four years. The biggest Nike Killer was a rise in price.

"When I started collecting Jordan, I did 105 pounds.

The certificate continues endlessly. Nike Sports Sandals's biggest dissatisfaction 2, like the management of real estate.

It's not difficult to find an anecdote report for a bad product: After all customers spend some money on fresh shoes, they are dirt on adhesives, no n-consumed logo, missing pattern, heel. I am upset by taking sports sandals such as the wrong shape. There is also these claims between the claims and the claim.

Quality control is a hands-on process that involves both manual and automated procedures, and therefore is not without failures.

But the high number of failures indicates that Air Force is not just low on defects.

On Tiktok, the request for "Nike quality control" gets tens of millions of views, and - spoiler alert below - in most videos, people don't talk about how happy they are with their new trainers.

"Why go through 200 pairs of Nike sneakers that are full of glue stains and likely to break in a month, when you can buy a perfect pair of new Balance for 150 pounds?" - asks one of the participants in the basement.

"The quality is falling. Anyone who has worked in a Nike shop knows that the pallets smell of glue," says another.

Back in Paris

But it's not all bad and gloomy for Nike. This summer, Nike has set a milestone: the Paris 2024 Games.

The world's biggest brands see the Olympics as an opportunity to appear in front of a global audience, and Nike is no exception. Good advertising and brand image can generate buyer confidence and boost stock prices.

Before embarking on this tournament, the sportswear manufacturing giant announced that it would be spending more on it than it had on all of its previous tournaments.

"Nike is the official sponsor of the American team, and if the athletes perform well, Yam will be at the top of the podium," Heidi Onin, Nike's president of consumer, product and brand, told Reuters in April.

And so it turned out: Simone Bayles won three gold medals in gymnastics, Noah Liles made a name for herself in the 100 meters, and Katie Ledecka made it to the podium four times.

LeBron James, a lifetime sponsor of Nike, wore golden metallic sneakers from his patented LeBron 22 line on his way to the gold medal.

And Nikeguracica won't just be in the competition: Each American athlete received a special package of 50 pieces of clothing, shoes and accessories, including an "interview" and "clothes for the athletes' village."

As Paris 2024 breaks records for attendance around the world. In the UK, BBC Sport's coverage was watched 218 million times, more than double that of Tokyo.

Beyond the sea, mult i-platform broadcasting NBCUIVERSAL attracts record advertising costs and an average of 30. 6 million viewers per day.

What does this mean for Nike? In the first week of the Olympics, Nike succeeded in increasing the number of visitors to its own site, but the direct presence of rival Adidas has decreased compared to the previous week.

Comparing web data has shown that Nike has been able to sell many visitors to its own site. Moreover, it has a greater success than competitors.

"Nike is still a problem for the entire brand.

"However, it is clear that the Olympics have increased their interest in this, but it is clear that the Olympics are increasing their interest in this.

The Marketing Imitus gained by the Olympics would not end all of Nike's imagination and real problems, but this is a clear step in the right direction.

Currently, the company's stock price has already begun to recover slowly, and has risen about 14 % since Bill Akuman, a hedge fund operated by US billionaires, has invested for the past month.

"Nike's ability to connect with consumers, beyond the pure conversation of products, is unrivaled," says Erval.

"It will take several years, but I believe that this brand can still be activated."

Nike did not respond to the request for participation in the article.

This is what you need to know in this week's money.

Money Blog Editor Jimmy Rice

Many people are dedicating the new administration, exaggerating the economic confusion left by the former administration.

The righ t-wing claim that the scenario for justifying the tax increase is not always motivated by ideology.

The data (GDP growth rate, low inflation rate) announced within a few weeks after Rachel Reeves joined the 11th Cabinet did not necessarily help workers.

However, this week, according to Ed Convay, Editor of Data and Economics, "I received the latest public financial reports, but it was closer to the Leves version than other data."

As of July, the borrowing of the government exceeded expectations. Conway wrote that the impact on public services and tax burden on the budget in October seems to be "gloomy" now.

Conway talks about everything in the Daily Podcast episode.

Conway-Informant does not want the warning to go unheeded and is still evaluating another path that involves changes to how the council president measures and evaluates municipal funding. You can read about it here.

This week also saw the timing of the introduction of the EU's new visa rules.

From the year 2019, UK residents will have to pay a 7 euro visa fee to travel to Europe. The subsidy, similar to the South American ESTA, is thought to be part of a series of new border controls and charges races to be introduced by the EU.

It will be used upon arrival in the Schengen area, which includes not only EU member states but also Iceland, Liechtenstein, Norway and Switzerland.

If a young person is 18 years old and over 70 years old, they will be exempt from paying the fee, as they would be if they were to move to Ireland or Cyprus.

The refusal measure will apply three years before the passport expires.

The official name of the system is the European Information System (European Infa system) and Travel Authorization System (etias), and it will be implemented following the introduction of the EU (ES) entry and exit system. The latter will require fingerprint registration and a photograph to be taken on arrival at the airport.

According to EU Home Affairs Commissioner Ylva Johansson, the EES will be operational on November 10, and Ethias shortly thereafter in 2025 (May at the earliest).

However, there is a possibility of a six-month preferential treatment before the issuance of the inviolable visa.

On Friday, it was revealed that the electricity tariff cap was increased in October, with another increase expected in January.

"For Chagrin, a volatile wholesale market and a province that is heavily dependent on energy imports created a perfect storm for household budgets to stagnate," said Dr Craig Rowley of leading consultant Cornwall Insight.

In his view, the maximum price system is likely to be reviewed as it does not protect households from bulk energy trends.

For Ozali, his normal annual score would be £1, 717, with an extra £45 added in the new year.

Here at Money, we look at the cost of football shirts in relation to the start of the new Premier League season.

For a more absolute picture, check out this explanatory video from our Digital Video team.

3 Here's some more important material from Money that you should read:

The update will be stopped until the solemn weekend is over, but you can read the weekend article from 8:00 am on Saturday. This week, we will study Buts exploded by Nike Sports Slippers.

Who is this Gale? One week comment of a lovable reader

Who is a similar storm? One week favorite reader comment

Some readers agree to the reaction, but almost all of them were not aware of what this hype was for.

Surprisingly, the luxurious residents of Walemstou's "Village" fled from Gale's expensive services. They are already absolutely satisfied with being paid at the market price without any questions at their SPAR shop. The sausage package using the La-LA-LA component is nearly 6 pounds. Let's hear!

Whale

Most stores want to open a Gale store. Their dishes and breads are as wonderful as coffee, and they have a very nice interior, giving elegance to any central area.

Petarin

There were still many people who were wondering why they would generally treat this situation.

When Waremstou becomes a "green suburbs". Is East17 there? And why is this news regarded as state news? Every day, shops are open and closed in various places in the state. Is someone who is really living there and taking the opposite? I don't know why there is a chance to become news.

City youth

For example, a comment on the rights of buyers based on Article 75.

I'm trying to buy a 7000 pound car at a dealer. Is it possible to defend the rights of the buyer's rights if you pay half with cash and half with a credit card?

Clive Black Pool

Including cases where only 1 penters are paid with a credit card. Everything is protected, including when paying only 1 pentol with a credit card.

Later, many people looked at the Saturday notebook on how the couple shared their money.

The readers share how they and their partners share their luggage.

We share all accounts more or less equally. He claims more money and presents his money and savings in a general life for 50 years. I have no opinion about his savings, and he does not want to be distributed. Yes, you understand everything correctly!

CP

All funds, such as paying invoices and receiving regular income, are 100 % at the same time. -Learn all the data on the same calculator! For 13 years, there was no difference in opinion, but we are still 30! I can't imagine going out for a meal and someone says, "I understand this."

Abbey S

My partner and I are discussing the possibility of buying a property together. Our rule is that we will each contribute 50% of the mortgage, regardless of how much we earn. We plan to work out the other accounts according to our income.

Adam

I earn much more than my partner, so once the relationship matures, I will have the overall savings difference. After the children are born, I will put everything in a general account, except for a small amount of pocket money for everyone. Financial equality is very important to have a happy relationship.

Linda

It's all simple. I don't know how much my wife earns, and she doesn't know how much I earn. We buy what we need and want, and when we go somewhere, she pays once, I cry once. So, there's no problem.

Cozi Powell

My partner earns over £60, 000 a year more than me, and we split the bills in two, but he buys all our food and our pets' food, and he usually pays when we go out somewhere. I can't ask him for extra expenses, and I can handle the situation perfectly.

Ram

Initially, my salary was paid 60% by me and 40% by my wife (plus 10%) and any money left in our personal accounts was our own.

58MPRL

The most disconcerting message this week was about increasing fines for parents who take their children out of school.

Why doesn't the government pay attention to travel companies? My partner and I work in schools. We don't have children who go to school but we have to go on school holidays and therefore have to pay exorbitant fees.

Tony

If you decide to pick up your children from school to go on holiday, I'll be honest because it saves parents a lot of money when the holiday is over. I'm a single parent with two children and I work two jobs.

Andy Henderson

As a teacher, I understand the disappointment many parents experience because of exorbitant holiday fees. It's horrifying to see families and teaching staff who can't afford to take time off. I also understand how difficult it is for children to make up for missed work.

Mickey

I am firmly against penalties for term time holidays. Some countries allow parents to take up to five days off per year. Your kids won't be upset if you spend a long weekend here and there or take a weekly trip once a year!

Semester trips