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Is Nike the Catalyst for Change: Why Companies are Switching to DTC

Source: Retail TouchPoints

Nike is seeing great success after leaving Amazon and terminating nine wholesale accounts. The brand’s retail strategy is now focused on its own stores and key wholesale partners, such as Foot Locker. The reason being is they want to own more of their customer journey. Regaining this type of control allows the company to differentiate itself through personalization and optimization of their brand, whether that be in-person or online.

Brand loyalty and lifetime value are better tracked for the brand as they transition more to DTC. No longer do they have to wait for third-party partners to provide consumer data. Real-time data tracking allows the brand to focus marketing efforts on smaller consumer groups and ultimately creates a more targeted approach.

Along with more control over the consumer journey, Nike can now be more nimble in its operations. From CRM initiatives to personalized product offerings, the brand has more ability to reach its customers directly. As their operations become more flexible the company can better focus on the most important part of their business- building a meaningful brand.

Read the full article written by TWO NIL’s Managing Director, Andre Artacho, here.

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