Thread regarding Nike Inc. layoffs

I believe there is a big disconnect between who we want our target consumer to be and our pricing strategy.
We want to sell to Gen Z but assume they have the disposable income of millennials / Gen X.

“Who is our target consumer?”

Great question. I always thought it was elite athletes, or people trying to become elite athletes, or people showing their appreciation of elite athletes. Those who were obsessed on winning at all costs. But our marketing since right before COVID started focusing on inclusivity, saying it’s not about winning, shying away from celebrating competitiveness. We launched shoes like the Motiva which is basically to expand our reach to people who are too fat and lazy to run. I don’t think that’s what Bill Bowerman meant when he said if you have a body you are an athlete. He’s probably rolling over in his grave right now.

I don’t know what Nike stands for anymore. Are we really about true athletes anymore? Do we really prioritize competition and winning over all else? I thought that’s why we’re named after the Greek goddess of victory, but the brand feels different now.

Even with my 50% discount I find myself looking more and more at On and Hoka products.

Bigger picture I don’t even know who we are trying to sell to anymore. Who is our target customer?

When your target market is inner city sneakerheads who will rob and ki-l to take your sneakers, the future customers are a variable ill-defined.

As we move further into this techno-economic future where needs are met but wages are unclear but certainly minimal in comparison to that of the 1%, who are living fat and full as the new masters of the global serf class, a few things _are_ clear.

These shoes cost way too damn much and that chicken is coming home to roost.

This probably deserves its own post, but let’s talk about the NCS. I consistently see product at the NCS that’s been on swoosh for months, and it’s marked down more than 50% online. Or it’s the same product that’s been in the store for months (we’re still selling Phoenix fleece in June?). And we keep talking about “her”, but women’s floorspace and selection is absolutely not comparable to men’s. I rarely go shopping there because I’m consistently disappointed by all the above - and I’ve heard the same feedback from people who’ve been shopping with a pass.

@gbx I hadn’t even thought about that but you’re totally correct. I used to have to ration my employee passes and turn requests down. But now that I think about it nobody has asked me for a pass for well over a year. I hadn’t even noticed. I also agree that between technology deployment and revenue sluggishness Nike will be a smaller company over time. I’m not talking about huge layoffs but more of a constant, slow drip. Nike’s current headcount is based on consistent 8%-9% revenue growth that I agree is no longer going to be the norm. Part of that is due to increased competition, part is due to consumers spending less, and part is due to “the law of large numbers”. Growing revenue at 9% when you’re a $50B company is a very different thing than when you’re a $25B company. Nike was always going to have that issue. It was only a matter of when. I do think people probably need to get used to the idea that Nike will increasingly “time out” employees. Something like “After you’ve been here 15 to 20 years you’ll want to seriously start thinking about your next employer.”

@qxz I also bought a pair of HOKAs out of curiosity. They are extremely comfortable. No denying that. They’re also almost impossibly ugly. If they can get better designers Nike’s going to feel that sting even harder.

For the record. I purchased my first HOKA and ON shoes, and by far the comfort level is 10x waay better than any NIKE i have ever owned.

To anyone under 30 it’s out of fashion. 10 years ago we were inundated with people wanting employee store passes. Now we can’t give them away. Headcount will continue dropping get used to the axe hanging over your head.

@drb+1sZYD504 You're absolutely right, however that IS the problem. The workstream, goals and structure of the company is so convoluted with such a tangled web of self inflicted hurdles and misunderstanding of what actually moves the consumer, I'm not sure how this changes. Of course, Nike can sell retro's and veneered franchises forever and have a hit here and there, but that strategy isn't inspiring anyone. As we know to well, the "drops" that people actually do want, are swallowed up by the cottage resell industry and indiscernible fakes so it all just becomes very uninteresting.

I hear you but disagree. I’m way more optimistic for the future. Big deal. There’s competition. The product teams at Nike can move mountains if certain “leaders” would just get out of the way. From the ELT to the HBM (hand bag mafia.) it is that group of leaders who are blocking the product progress with the failed internal and external strategies of the past few years. Let the product teams focus on innovation and the consumer. Let the commerce teams rebuild what the current leaders imploded in 2020. Take HON off the FW adoption invites and then its moving in the right direction. As far as the Olympics goes, there is larger demand for Live sports. The issue will be the time change. It’s still a huge sports moment for the brand. No one is expecting a giant revenue jump during the games but it is a place to showcase innovation and elevate product through the athlete stories that can fuel key products after the event is over. That is usually the long term benefit.