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China Licensing Expo
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July 5, 2017

Comments

Yes it absolutely does and see my Amazon comment for why. Nike cannot build a business around Foot Locker. Malls are dying. Nike is dependent on retailers who are trapped in an old dying model in the wrong locations for consumers today. Think about what the Apple Store has done for Apple. Nike is a lifestyle brand and yet they don't own the last mile. They need to own the end to end experience.

But look closely at their wording - this is not about retail in isolation, it's about "direct consumer connections". Think Bonobos for where this is going. Nike is hiring a massive digital team right now and doubling down huge on CRM. Smart people I know from Zynga, Storm8, Apple, and others. These guys are going to turn Nike into a data-driven direct marketing machine that offers not just products but services. They will know who you are, what your shoe size is, what sports your play, whether you are trying to lose weight, how you are doing with that, etc etc. Nike, like Apple, is going to become part of the fabric of your life. They can't do that through Foot Locker.

Nike is doing what frankly Mattel or Hasbro should do. And if that sounds nuts, I refer you to the Lego store, which itself could stand to evolve but nonetheless shows you what owning a brand end-to-end can do.

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