Russell Harris Jr.’s Post

Thanks Audrey Kemp and The Drum for the mention. I think part of what's happening to Nike is that people are just more aware, educated, and emboldened to prioritize their own personal comfort and performance goals ahead of brand equity. If you're anywhere near my age, as your entire body starts to fall apart, you appreciate the advice from fitness coaches and health experts that many of our physical issues "start with our feet." In the pursuit of style or status, we haven't always supported our feet in the very specific ways that our very specific bodies require, and we're starting to feel it. Now, people are open to exploring other brands that might have answers. They have friends and family members who swears by this much-less-glamorous footwear because they find the shoes comfortable and supportive. Just as Nike shoes are disappearing from department and specialty stores, the Ons and Hoka's of the world are starting to show up 👟. Suddenly, a brand the old you would've ruled out on pure aesthetics (ahem, Asics) can get into the consideration set 👀 The store associates at all these places have been briefed on all the shoes and probably tried most of them, too. They're part of this equation. They're dispensing opinions and advice that carry weight. All this to say, we're long past the point in consumer life where the simple fact of a brand like Nike has such an iron grip on our preferences. Not talking about the sneaker heads. Just the average person who wants to run or do anything remotely athletic, free of pain. Nike will be fine though. The brand equity and visibility is still there, and so is the war chest (even if it's a little reduced these days). The minute they're obsessively refocused on what costumers want, their competitors will be the ones scrambling.

👟Nike's Strategic Pivot: Navigating Change in a Dynamic Market Nike is currently undergoing a significant transformation in the ever-evolving realm of sportswear and digital innovation. The expected layoffs, impacting approximately 2% of its workforce, are now underway, notably affecting senior leaders in the technology and marketing sectors. This restructuring phase comes at a challenging time for Nike, marked by a 13% year-on-year decline in stock prices, slowed revenue growth, and a modest 1% sales increase that fell below expectations for the second consecutive quarter. Facing market challenges due to reduced consumer spending and intensified competition, Nike is swiftly adjusting its strategy. The company aims to recover revenue through layoffs and cost-cutting measures, highlighting the importance of refocusing on innovative products, compelling narratives, and unique marketplace experiences. Despite recent setbacks, Nike's reputation as a leader in sportswear endures. Recognised for its trailblazing digital innovations, the company has transitioned towards direct-to-consumer channels, introduced cutting-edge apps like Snkrs, and ventured into the realm of Web3 through the establishment of Nike Virtual Studios (NVS). The recent staff reductions have sparked discussions about Nike's dedication to digital innovation, particularly amidst the ongoing upheaval in the tech and innovation divisions. This uncertainty is significant as NVS, responsible for overseeing Web3 and metaverse endeavours, plays a critical role in Nike's forthcoming digital strategy. The Web3 landscape, once viewed as a lucrative opportunity, has encountered obstacles, with Nike shifting its focus from NFT collectibles to gaming skins and in-game assets. Despite these hurdles, experts believe that Nike's Web3 innovation strategy remains "directionally correct." The Dotswoosh strategy, despite initial challenges, is seen as a strategic decision that retains fans within the Nike ecosystem. While market forces push for immediate revenue growth, Nike's strategic collaborations with major gaming companies like Electronic Arts and Epic Games hint at a potential move towards gaming skins and in-game assets. In a statement, CEO John Donahoe stressed the importance of agility and comprehensive execution, underscoring the significance of concentrating on core priorities. As the industry readjusts, Nike's capacity to adapt and capitalise on its legacy of innovation will likely determine its success in navigating the dynamic terrains of sportswear and digital innovation. #Nike #DigitalInnovation #Sportswear #liweb3 https://lnkd.in/e9zcCF4p

NIKE AS AN EXAMPLE OF CRISIS IN FASHION: NEW LAYOFFS METAVERSE FASHION MAGAZINE Experts point to a deeper crisis within the traditional fashion sector, attributing it to an outdated business model characterized by excessive centralization, overproduction, unsustainable supply chains, inadequate business ethics, and a dearth of innovation. This crisis underscores the urgent need for industry-wide reform to address these systemic issues and pave the way for a more sustainable and resilient fashion. The fashion industry is grappling with significant layoffs, with Nike emerging as a stark example. In a recent development, hundreds of employees have been laid off at Nike, with the company's Oregon headquarters bearing the brunt of the second wave of cuts. Nike Inc. is on track to eliminate approximately 740 jobs at its headquarters by late June as part of its ongoing cost-cutting strategy. Michele Adams, Nike's vice president of people solutions, disclosed in a filing with the state of Oregon that these layoffs mark the "second phase of impacts" as the sportswear giant continues to streamline its workforce. This move comes in line with Chief Executive Officer John Donahoe's announcement in December, wherein he outlined plans to reduce the global headcount by 2% as part of an initiative to achieve up to $2 billion in cost savings over the next three years. The process of downsizing at Nike commenced in February, with the company aiming to wrap up the restructuring by the end of its fiscal year, as per an internal memo obtained by Bloomberg News. Donahoe emphasized the necessity to "edit, shift, and divest less critical work" to prioritize essential aspects of the business in order to stay competitive. landscape. https://lnkd.in/gbSzzS9M #metaverse #fashion #web3 #ai #investment

Nike 's Playbook for Growth: Streamline, Specialize, and Double Down on Digital Industry Insights: Nike's recent announcement of 1,600 layoffs (2% of its workforce) amidst a broader cost-saving plan signifies a strategic shift within the sportswear giant. While some might view this as a negative sign, it's crucial to analyze it within the context of the evolving retail landscape: DTC Dominance: The pandemic accelerated the shift towards direct-to-consumer (DTC) sales, and Nike is doubling down on this model. Streamlining operations and reducing complexity will fuel agility and efficiency in this crucial channel. Optimizing Inventory & Portfolio: Bringing inventory under control and simplifying the product portfolio are strategic moves to address recent sales declines and enhance profitability. Targeted Growth: Nike's focus on key growth areas like running, women's, and the Jordan brand reflects a data-driven approach to capital allocation. This specialization aligns with evolving consumer preferences. Embracing Partnerships: While prioritizing DTC, strategic partnerships with select wholesalers like DSW and Macy's create valuable touchpoints and expand reach. Creative Analysis: Nike's actions paint a picture of a company taking calculated steps to regain its offensive edge. By streamlining operations, optimizing its product portfolio, and doubling down on strategic growth areas, Nike is poised to capitalize on the booming athleisure market. This shift reflects not just cost-cutting, but a smart adaptation to the evolving retail landscape. Key Takeaways for the Industry: DTC is the future, but strategic partnerships can still be valuable. Streamlining operations and optimizing inventory are crucial for profitability in a competitive market. Data-driven insights should guide product portfolio decisions and growth strategies. Agility and adaptability are key to success in the ever-changing retail landscape. #Nike #Retail #DTCStrategy #GrowthMindset #IndustryInsights

If you are in transition - message me for a few ideas regarding your Fidelity accounts that you may not know about. 💡

A powerful reminder! A reminder that I definitely needed to read & reflect on today.                         Cheers to stumbling (literally & figuratively if you know me 😂😂), rising up & thinking twice before betting against the Swoosh!

Nike to layoff 740 employees by June this year and total of 1600 employees will be laid off. Reason: Sales dip. Question is who will be chucked off and who will be retained. An organization cannot retain an employee who is not adding value to it. A very big question, are you an employee who is adding value to your organization. If your answer is "NO", then be assured, soon you will get the pink slip and then you will be out again to look after a decent job. Keep upskilling yourself and try to be an asset for the organization and not a liability. #Nike #Employee #Success #Growth #business #startup #Layoff https://lnkd.in/g5huaPUb

And Nike is not alone. All their layoffs are white collar jobs. And it will continue. Sadly. The best brands are laying off people. What does it say for the mediocre and poorly performing brands? When we hear all the news about how well the economy is doing and how we are in the middle of a soft landing, we need to look at specific areas of the economy and see its effects on our own categories and brands. The stock market surge is driven by 7 tech companies. And they have laid off people too. This economy is more complex than many realize. When you zoom out it looks solid, but when you zoom in you clearly see soft patches. In 2024 we need to expect the best, and be prepared for the worst. And most importantly, we need to understand that the best way to predict our own future is to create it. Daily.

Nike Cuts 24 Outlook - Many Layoffs are expected! Nike sounded a warning sign Thursday as the sneaker giant sees consumers becoming more cautious. Nike slashed its revenue outlook for the year and announced cost cuts amid growing concerns that consumers are slowing their spending around the world. The company said it’s looking for as much as $2 billion in cost savings in the next three years, which includes laying off employees. Shares of Nike (NKE) tumbled as much as 14% Friday. Customers are switching their behavior, passing up discretionary purchases — like expensive sneakers and athletic wear — for basics and experiences like concerts and travel. Nike is also facing tough competition from upstart brands like Hoka and On Cloud. Nike finance chief Matt Friend said Thursday in the company’s conference call that the new outlook reflects “indications of more cautious consumer behavior around the world.” He pointed to sluggish sales in China and the company’s segments in Europe, the Middle East and Africa. Nike saw soft demand outside of key holiday events like back-to-school shopping and Black Friday. The company’s e-commerce sales slowed and rivals offered higher promotion levels to entice shoppers. While fears of a recession in the United States have faded, European economies are slowing down.

Nike faces a decline in sales and concerns due to economic uncertainty. #nikecortez #shoes #jordans #economy #fashion #nike #stocks Nike has experienced a decline in sales and market value after announcing that its revenues will decrease in the third fiscal quarter. They also forecasted a low single-digit increase in the fourth quarter. This has caused concern among analysts and experts as it reflects the current economic uncertainty. Its stock price dipped 10 percent suggesting a buying opportunity for those looking to hold long term. However, some analysts are cautioning that the company may not be generating enough buzz on new products. The impact of Nike’s promotion and branding strategy on workers. Nike invests a significant amount in promotion and branding by partnering with various influential athletes. However, this strategy can create a more precarious situation for their workers, as they may be more susceptible to layoffs, considering themselves “replaceable.” According to Bloomberg, #Nike is also taking steps to optimize the organization, resulting in anticipated pre-tax restructuring charges of approximately $400 to $450 million. These charges are mainly associated with employee severance. Even with the layoffs, the restructuring process comes at a significant cost for Nike. Ultimately, Nike’s goal is to reduce costs for the coming years. This defensive approach indicates a cautious stance for the next three years. Nike aims to become more efficient and adapt to economic and market conditions, which involves taking measures to control expenses and ensure the long-term viability of the company. This could also be something we should consider on a personal level.