Nike Shifts to D2C in Bigger Brand Ownership Play

Nike is shutting down 9 wholesale accounts as it shifts its focus to direct-to-consumer sales.
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Retail Dive
This marks a major move away from retail, as the sneaker giant chooses to own a greater part of its distribution and marketing. While the D2C world has seen a marked increase in small businesses, enormous corporations like Nike capitalizing on a more vertical supply chain is a huge indicator of the massive shift to come.
The D2C world has been experiencing an influx in new small businesses for some time, as brands realize the financial value of selling to their consumers from further up the supply chain. It also affords them greater control of their brand voice and buying experience—allowing them to capitalize on the millennial and Gen Z affinity for branded shopping and product experiences.
The move move to D2C lets brands get more out of their consumer-focused initiatives, for example Nike ID's customization tools. It also gives brands ownership of the consumer data attained through customers’ purchasing and shopping preferences. Expect to see more corporations like Nike moving away from third-party shopping experiences, and placing more emphasis on brand-owned community moments.
WORDS BY
SR. EXPERIENCE STRATEGIST
TATIANA CHILCOVSKY