Who has more POWER Nike or the Distributors???

[tokes99]

Originally Posted by Crazy EBW

Originally Posted by johngotty

I honestly think they have to coexist.



FL Inc. has more retail stores under their umbrella than any other company. If Nike left them, who would they sell to? ****'s

?



But on the flipside, I vaguely remember FL doing "okay" in my region when the fallout occurred. I mean there's only so many crummy Reeboks you can pawn off on the public.

What if Nike said screw it and just opened retail stores everywhere for themselves? What would Footlocker buy/sell then? Nike would be even more dominant than they are now if they had a massive global set of retail stores at malls, I'm not just talking Niketowns and factory stores. It would be automatic checkmate for Ftl, fnl, etc.

while it would be hard for ftl to replace the business that nike represents in their stores, it would be just as difficult (maybe harder?) for nike to justify the investment $$$ it would cost for rent, logistics (shipping & transportation to all of these new stores), personnel & product/profit risk it would take to run the amount of stores to make up for the business that ftl represents to them, even if they also increased the amount of business to other distributors. it could end up being really expensive...as ayipapa & gotty alluded to, though nike does have "hand" in the relationship, they do need each other

 

[johngotty]

^ my thoughts too. Opening up stores sounds easy but...it's costly as hell. Why would Nike open up retail stores in offbrand locations and take a Walmart-type approach that could potentially devalue their brand and product? 

 

[johngotty]

^ my thoughts too. Opening up stores sounds easy but...it's costly as hell. Why would Nike open up retail stores in offbrand locations and take a Walmart-type approach that could potentially devalue their brand and product? 

 

[ayipapi]

Besides that..doing something like that would be like cutting off your nose to spite your face...Distrubuton lines ARE customers...with the exception of a few NT, Factory Stores, And NDC..Nike doesn't deal with the general public..items are purchased in bulk via distribution lines and that's pretty much it...the only times that the public concerns over quality, price, color ways, materials etc have to be addressed is when the distributions RTV the items....in order Nike to cut out the distribution lines (which would be suicide) would be at a HUGE cost and expense and also NOW put them in a place where they take both the benefit of product sell outs (much higher margins) but also take a MUCH larger hit on items that BRICK at release...and the REAL truth is that for every Air Jordan XIII or Nike Air Yeezy or Nike Lebron SB that sell out instantly...there are 100's of items month after month that DON'T MOVE at retail..even before the economy went to $%@$...but distribution lines hA
HAVE to buy the crap so they can continue to get the QS and Tier Zero drops

 

[ayipapi]

Besides that..doing something like that would be like cutting off your nose to spite your face...Distrubuton lines ARE customers...with the exception of a few NT, Factory Stores, And NDC..Nike doesn't deal with the general public..items are purchased in bulk via distribution lines and that's pretty much it...the only times that the public concerns over quality, price, color ways, materials etc have to be addressed is when the distributions RTV the items....in order Nike to cut out the distribution lines (which would be suicide) would be at a HUGE cost and expense and also NOW put them in a place where they take both the benefit of product sell outs (much higher margins) but also take a MUCH larger hit on items that BRICK at release...and the REAL truth is that for every Air Jordan XIII or Nike Air Yeezy or Nike Lebron SB that sell out instantly...there are 100's of items month after month that DON'T MOVE at retail..even before the economy went to $%@$...but distribution lines hA
HAVE to buy the crap so they can continue to get the QS and Tier Zero drops

 

[3onpar5]

Dont underestimate the power of the Factory Store and NIKETowns etc. Factory Store made over 1 billion of NIKE's money last year. That is just with around 150 stores. I know a few years ago NIKE looked into buying out Just for Feet, but bailed at the last second.

When the NIKE/Footlocker fallout a few years ago happened I really think that Footlocker took a bigger hit. People could still go to any other retailer or online and still get their shoes. Imagine if Footlocker did not get SpaceJams. Who is hurt more? People are still gonna get their shoes.

I think they share control but I would give it to the shoe companies 70/30.

 

[3onpar5]

Dont underestimate the power of the Factory Store and NIKETowns etc. Factory Store made over 1 billion of NIKE's money last year. That is just with around 150 stores. I know a few years ago NIKE looked into buying out Just for Feet, but bailed at the last second.

When the NIKE/Footlocker fallout a few years ago happened I really think that Footlocker took a bigger hit. People could still go to any other retailer or online and still get their shoes. Imagine if Footlocker did not get SpaceJams. Who is hurt more? People are still gonna get their shoes.

I think they share control but I would give it to the shoe companies 70/30.

 

[3onpar5]

Pump Fake...Freakin Yuku

 

[3onpar5]

Pump Fake...Freakin Yuku

 

[nermindee]

Nike for sure... they force their distributors to also try and sell crap like fusions and stuff.

 

[nermindee]

Nike for sure... they force their distributors to also try and sell crap like fusions and stuff.

 

[hella stacks]

Nike

/thread

 

[hella stacks]

Nike

/thread

 

[executive76]

Originally Posted by johngotty

^ my thoughts too. Opening up stores sounds easy but...it's costly as hell. Why would Nike open up retail stores in offbrand locations and take a Walmart-type approach that could potentially devalue their brand and product? 

not exactly HOH is basically a Nike retail store they could use the same approach

It would actually open more room for mom and pop stores and smaller chains like DTLR

 

[executive76]

Originally Posted by johngotty

^ my thoughts too. Opening up stores sounds easy but...it's costly as hell. Why would Nike open up retail stores in offbrand locations and take a Walmart-type approach that could potentially devalue their brand and product? 

not exactly HOH is basically a Nike retail store they could use the same approach

It would actually open more room for mom and pop stores and smaller chains like DTLR

 

[johngotty]

^ Yeah, but can you imagine factory stores in the like in off the beaten path areas where there are Footlockers now? Nike couldn't conceivably open up enough stores to match.

 

[johngotty]

^ Yeah, but can you imagine factory stores in the like in off the beaten path areas where there are Footlockers now? Nike couldn't conceivably open up enough stores to match.