What's gone wrong at Nike? How the world's sportswear giant lost its mojo
Several self-inflicted mistakes have cost the biggest sportswear brand on the planet in recent years.
By BBC News
Nike has lost ground through weaker sales, a fall in customers and a series of strategic mistakes that have left the brand struggling to recover. The BBC says the company’s share price has tumbled sharply over five years and that rivals such as On and Hoka have taken shelf space once dominated by Nike.
The article says one of the biggest setbacks came when Kylian Mbappé ended his long association with Nike and joined Swiss rival On. It also says veteran sports retail analyst Matt Powell believes Nike made “several strategic errors”, including cutting ties with retailers to sell more directly online and making limited-edition products more widely available.
Powell said the wider availability made the shoes less desirable. He also argued that Nike diverted research and development money into digital operations rather than new products, saying the company had “really shut down” its product innovation.
The BBC report says Nike’s problems have been made worse by weaker demand in overseas markets, including China. It says the company has announced cost cuts and redundancies as part of its response.
The article presents the story as one of self-inflicted damage rather than a single external shock. It says the brand’s recovery has been undermined by a series of decisions that weakened its competitive edge and allowed faster-growing rivals to move in.
Nike is now trying to rebuild, but the BBC says the pressure on the company remains clear as it works through the effects of those earlier mistakes.