Nike expects sales to take off with launch on Jet.com
Nike surprised some last year when it agreed to sell directly to Amazon.com and did it again last week when revealing a partnership with Walmart’s Jet.com.
Both moves drew attention because of Nike’s reputation for diligently protecting its brand image and its commitment made last November to drastically narrow its wholesale customer base to focus on those offering “differentiated” retail experiences.
Nike’s move to Amazon, first revealed in June 2017, was at least partly driven by a quest to better police counterfeit sales from third-party sellers on the platform. Nike also gained greater control of messaging and access to consumer purchasing data. Many observers felt Nike couldn’t pass up the potential sales boost, particularly with Sports Authority’s exit from the marketplace.
By December, Nike had expanded the limited test, and Mark Parker, Nike’s CEO, said on an earnings conference call in June 2018 that the Amazon partnership was “progressing well.” He added, “We remain focused on elevating consumer experience on the platform.”
Appearing broader, the October launch on Jet will feature “hundreds of products across apparel, footwear and accessories,” according to Jet’s press release announcing a broad relaunch.
One major shift in Jet.com’s relaunch is a narrower focus on affluent, urban Millennials with a concentration on local brands and messaging.
A second is a focus on “tailored shopping,” or delivering “different experiences” not only for browsers looking for grocery items versus apparel, but to individuals seeking Nike products across yoga, basketball, fashion or other segments.
“What [Nike’s] done with other folks online is a mere assortment of basics,” J. David Echegoyen, Jet.com’s chief customer officer, told Business Insider. “What you’ll see is a lot more understanding of how the customer interacts with Nike, what they see in Nike, and how we can bring it to life on Jet, creating a canvas that allows those brands to connect with customers.”
Nike also gets a dedicated page, apparently similar to one found on Amazon-owned Zappos.
- Jet Relaunches with New Experience, Assortment and Service to Become the Shopping Destination for City Consumers – Jet.com/PRNewswire
- Nike’s impending arrival on Jet.com shows a key advantage Walmart has in the fight against Amazon – Business Insider
- Nike Is Partnering With Jet — Here’s How It Will Differ From the Brand’s Amazon Deal – Footwear News
- What will a Nike/Amazon deal mean for the brand and other retailers? – RetailWire
- Walmart’s Jet.com relaunches site, offers three-hour delivery in NYC – RetailWire
- Nike turns its back on ‘undifferentiated, mediocre’ retailers – RetailWire
DISCUSSION QUESTIONS: Do you see any issues with Nike selling directly on Jet.com’s revamped website with the platform’s connection to Walmart? How would you assess the benefits versus risks for Nike in partnering with Jet.com versus Amazon?