VIDEO INTRODUCTION:
Hi everybody,
Nike is failing!!
In the past 1 year, while adidas stock price has appreciated by 19%, Nike’s stock price has gone down by 21%!!!! While in 1st quarter of 2023, adidas had an inventory of 6 billion dollars, in the same quarter Nike had an inventory of 8.9 Billion dollars!! So Nike had 9.7 Billion dollars of unsold stock in its inventory!!!!!! So sales are dropping, dead inventory is high and the stock price is going down!!
And all of this started because Nike made 1 big big mistake!! This mistake is called Direct to consumer strategy!! Or DTC!!
Now this DTC approach is the reason why this case study is super super important, because while America got hit by the DTC wave in 2010, now in India, everybody wants to start a D2C brand!! So if you are a DTC investor or an founder, watch this episode very carefully, because you can all the hard lessons that Nike learnt by burning billion of dollars!!
So in this episode today, lets dig deep and understand,
What exactly is this D2C model?
Hi everybody,
Nike is failing!!
In the past 1 year, while adidas stock price has appreciated by 19%, Nike’s stock price has gone down by 21%!!!! While in 1st quarter of 2023, adidas had an inventory of 6 billion dollars, in the same quarter Nike had an inventory of 8.9 Billion dollars!! So Nike had 9.7 Billion dollars of unsold stock in its inventory!!!!!! So sales are dropping, dead inventory is high and the stock price is going down!!
And all of this started because Nike made 1 big big mistake!! This mistake is called Direct to consumer strategy!! Or DTC!!
Now this DTC approach is the reason why this case study is super super important, because while America got hit by the DTC wave in 2010, now in India, everybody wants to start a D2C brand!! So if you are a DTC investor or an founder, watch this episode very carefully, because you can all the hard lessons that Nike learnt by burning billion of dollars!!
So in this episode today, lets dig deep and understand,
What exactly is this D2C model?
Category
📚
Learning