Cutting 1400 workforce, killing hundreds of shoe models – Nike is in trouble.

During the press conference last Tuesday, the Nike group continued to share its upcoming plans with an extremely anxious mind. It can be said that after decades of standing at the top of glory, this is the first time Nike has felt the hot chasing of adidas as well as a series of other sports brands, including Under Armor – a young brand. young.

Based on this summary, there will be thousands of job cuts not limited to just one region but globally, equivalent to 2% of Nike’s current employees. Not only that, a quarter of all shoe models will also be permanently killed so “the Swoosh” can focus more on popular products – and this is also shared by the trend. Consumers are changing too fast, besides pressure from adidas products or the miraculous growth of Under Armor was also mentioned in this press conference. But rest assured, because the number of Nike products is so much, and ¼ of them certainly do not fall into the products you always hear like Air Force; Air Max or Lebron basketball shoes; KD; … where.

While the stock is on track to bounce back from $ 52.40 to $ 52.85 (up 0.45 or 0.9%), that is far from dwarfing last week’s staggering drop from $ 55.03 to $ 53.59 (equivalent 2.7%), this unrestricted decline shows that Nike was in a difficult position to become the biggest loser in this North American three-horse race. The records of this difficulty are also reflected in the 2016 North American best-selling shoe statistics, adidas tried again and achieved the desired success when becoming. best-selling shoe model until Q1 / 2017. Although still owning more than 50% of the market with 2 main brands, Nike and Jordan Brand, losing the top selling position to the 3-striped brand is still a painful “slap” that makes CEO Mark Parker look. get your move back.

Besides somewhat negative information, Nike also said that the company is always and will focus on products with high technology applications such as Air VaporMax; the most recent ZoomX products are NikeReact and will of course spread across all segments of the market such as running; basketball; football and also Sportswear. With the name “Consumer Direct Offense” (roughly translated: Targets directly targeting customers), this plan will take place focusing on 12 major cities in 10 countries – also the main markets familiar like New York; London; Berlin; Paris; Barcelona; Seoul; Shanghai, … under the direct leadership of Trevor Edwards, president of the Nike brand.

The plan also outlines the directions to soon be overcome and will start onwards from 2018, which includes reducing production time by half, which is also what the German brand has applied. and it was very successful very quickly. Half production time is reduced, equivalent to a series of successive processes such as shipping / testing / product evaluation / product launch also halved. In addition to the production plan that will have an important participation of business results from 6 now only 4 remaining, Nike will include both markets, Western Europe; Center and Eastern Europe together with Japan into the common bloc, so that the main markets remain the same and will be corrected as follows: North America; Europe; Middle East and Africa; China; all of Asia and America. As adidas remarked late last year, time is of the essence in this increasingly fierce race.

Although it’s only been half a year, the changes are amazing, and don’t forget to keep an eye on EACHSHOES for interesting information about this battle.

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