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Stock Discussions 2024
it WAS anna no longer , its lost it market to ton of brands , it was a innovator under previous ceo no much innovation other barnds are providing lot of options lifted a article 3 months ago when I shorted at that time , time after time its loosing value lets see time will tell they need to add lot of catalysts Nike is lost. This is one of the many conclusions from this deep dive into the state of the Nike business from The Business of Fashion. The article gives a good outsider account of what looks to be a compounding set of mistakes since 2021. But one example stood out to me. "The former eBay CEO came from a consulting background, whereas Parker and Knight were laser-focused on product and brand marketing. Donahoe set about driving a transformation of Nike’s business that relied on data-driven insights rather than cultural and creative nous." Charts vs. chutzpah It's a time-in-memorium story. Rational and incremental. Managing vs growing. Consistency vs revolution. While this is a deliberately reductive argument, it's not without a grain of truth. This dichotomy hits differently when you're talking about Nike. Its mythology IS different. The irony is that a cursory read of Shoe Dog would tell you that Nike is, at its heart, a pure instinct company. There's a reason why the original principles of Nike get handed around as Brand 101. Stuck on mood boards across the globe. Or a film could be made about the origin of Air. Or the reason it's a list of marketing achievements would be impossible to surmise in 500 words. Business-wise, of course, you need operational excellence to drive growth. Data-led insights are hugely useful to that objective if used correctly and judiciously. But without instinct and bravery, you can't sustain what makes the brand unique. The gears atrophy. The brand is what people buy. The brand runs the system. When things fall apart, the system runs the brand. The irony is that both Hoka and ON feel intensely rational and systematic. Yet, they are better at following their instincts than Nike. They're braver. Personally, ON is an insane brand. They're still shoes for dorks. But they're following their instinct. They're doing what's right for them, and their customer base is growing. That loss of instinct has downstream effects. In a world where 'Just Do It' can be interpreted as exclusionary and sharp-elbowed, Nike doesn't quite feel on its game. This challenge is writ large in the most recent Jumpman Jack commercial. An aimless attempt to fuse Travis Scott and Jordan's brand together. It's flashy, it's loud and furious, but airless. Any tension Scott generates is muted. Less gleaning a truth from Travis that connects to a wider world, but insular, serving no one well. If we're measuring by hype, a sellout on Cactus Jack is a success. The data will state 'thumbs up'. But instinctually, it's a thumbs down. Amid the gloom about the brand's current state, Nike's superpower has always been its ability to course-correct. To make paradigm leaps in product and communication. That course correction comes through bravery, instinct, and a return to a just-do-it sensibility. Nike should worry less about what's on the chart and trust in the chutzpah that made Nike NIKE. -
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