What's gone wrong at Nike? How the world's sportswear giant lost its mojo
Summary
Nike, the largest sportswear company in the world, has faced several challenges recently, including losing sales, customers, and market share to competitors. The company has started a turnaround plan led by Elliott Hill, but progress is slow, and the loss of football star Kylian Mbappé to rival brand On raises questions about Nike's future appeal.Key Facts
- Nike's sales and customer base have declined in recent years.
- Elliott Hill, brought out of retirement two years ago, is leading Nike's turnaround plan.
- Nike lost football star Kylian Mbappé, who ended his 20-year deal to join the Swiss brand On.
- Nike’s stock price dropped 75% over five years, leading to its removal from the S&P 100 index.
- Strategic errors include shifting focus to online direct sales and making limited edition shoes widely available, which reduced demand.
- Nike invested more in digital operations than new product innovation during John Donahoe’s leadership, contributing to its challenges.
- Competitors like On and Hoka gained market share by responding better to current trends.
- Nike’s past success included signing major athletes like Michael Jordan, Tiger Woods, Serena Williams, and Cristiano Ronaldo, but recent partnerships have changed.
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