Their strategy hasn’t unfolded as they expected
Published: 31st Jul 2024
Cape Town, W. Cape, SA – Yes, Nike has been down this road before. Their current new Global Strategy to streamline their distribution was implemented and we independent businesses were out of their bigger plan. This sadly led to many independent retailers, dependent on
Nike, Adidas, NB, etc., to close down or to downscale their operations.
Nike had previously also taken this decision almost 15 years ago, and then reverted to supporting us again. I’m not certain whether this will be the case this time round. Certainly, in our segment of the market, no Nike product available at street level encouraged the fake market to flourish. The fakes have substituted the aspiration of the masses to a large extent, unfortunately.
Also, the chain groups like TFG, Truworths, and Mr Price are over saturated with these brands, but are not offering the correct styles that the customers are looking for.
Nike has also gone top end to stores like Lemkus, ShelfLife, Archive for their more exclusive SKUs. We were stockists of these Jordan, Air Force styles and had great sell throughs
It would be a win-win situation for both us independents, mini-chains and the brands to restock these brands. It’s quite apparent that their strategy has not unfolded as per their expectations,
We look forward to their next move.
- Relationships have to be more equalCape Town, W. Cape, SA – I’m sure Nike’s decision to drop so many retailers can’t have helped their recent performance, but I don’t know how much damage that did to them.It was mostly motivated by the opportunity to double their markup – that’s the only reason that makes sense. But what they didn& ...moreSpringbok sponsors – and as a sports shop we can’t get a single jerseyPort Elizabeth, E. Cape, SA – What we hear is that both Nike and Adidas are losing sales internationally.Here, however, we’re affected by Nike’s Springbok sponsorship deal – as a sports shop, we can’t get a single Springbok rugby jersey or replica shirt. We couldn’t get them during the World Cup, we cou ...moreI’ve ‘filled the gap’, thank youCape Town, W. Cape, SA – L. Cohen Outfitters Est 1912 was the first independent in Wynberg to acquire the Nike brand, a situation that we held for a number of years before Nike's policy changed to supplying numerous stores in close proximity.Those were the good years.The World didn't end when they advised that they would be terminat ...moreOthers have taken their placeLouis Trichardt, Limpopo, SA – I do think their drop in business is because they have sidelined all the independents. After all, it was the independents that grew the brand, not the chain groups. With this being said, all other companies have taken advantage and grown to another level. One of those is Puma which has grown so much an ...more
- Has Nike’s greed come back to haunt it?Early in July, international media carried reports about a steep fall in Nike’s share price following disappointing results. One was Sky News, which headlined a report: ‘How a series of blunders brought Nike's share price to COVID lows and meant it's being beaten by younger rivals.The iconic sportswear brand has switched away ...more
Footwear Industry Articles
- Comrades Expo 2026
Durban, KZN, SA – The exhibitor list at the Comrades Expo, from 11-13 June, has shown an evolution in the types of companies exhibiting. Just 1 running footwear supplier, Ikhambi Distribution, promoting its Hoka brand, was there.Technical sock suppliers, however, were well represented, with Balega, Falke, Sox Footwear and The Hirst ...moreSAFLEC AGM 2026: A year marked by resilience
On behalf of the Board of Directors, it is my pleasure to welcome all our members and stakeholders to the 24th Annual General Meeting of the South African Leather & Footwear Export Council (SAFLEC).The Annual General Meeting provides us with an opportunity not only to reflect on the performance of the Council over the past financial y ...morePalm Footwear: ‘One family’Palm Footwear was founded in July 1966 by Kasie Pattundeen, with 18 staff, making slippers.60 years later, with over 800 staff, it is among the biggest employers in the SA footwear industry and among the biggest manufacturers by volume.It remains a family business, headed by Rajeev and Kiran Pattundeen, with their children, Srishti and Rt ...more
Leather Industry Articles
- Fifteen million sheep in the UK to share among shearersAccording to the UK government, its sheep population decreased over the past year by 1.7% but that still leaves a flock of over 30 million. For comparison, the domestic flock in South Africa numbers about 21 million and New Zealand has some 23 million. Australia, with more than 70 million, has a wool clip of approximately 325,000 tonnes. ...moreWhen communication moves faster than truth: Why credible, evidence-based information matters more than ever.We have never had more information at our fingertips. We have also never had to work quite so hard to determine which information we should trust. Communication today moves at extraordinary speed. Social media platforms, digital news, corporate communications, industry reports and, increasingly, artificial intelligence allow information t ...moreBeyond the data trap: Why better decisions matter more than just more data
On 1st July 2026 I presented at the FILK Leather Days conference and asked the delegates to consider “Sustainability through a new lens: resetting how we view impacts in the leather value chain”. This month’s article therefore explores this idea a little more with a focus on how we view data and whether it can blind us t ...more
PPE Industry Articles
- More precise fire extinguishing from the air using simulation and sensor data
Wildfires are becoming more frequent and more intense worldwide. Fires often become infernos due to heat, drought and wind, especially in the summer. The problem is compounded by the climate crisis. Researchers at the Fraunhofer Institute for Industrial Mathematics ITWM and the startup CAURUS Technologies GmbH are responding to this growi ...moreNew OHS regulations coming into force later this year mean PPE needs to be reviewed, too
In March 2025, the Physical Agents Regulations (and their guidelines) and the Noise Exposure Regulations (and their guidelines) of the OHSAct were published, with an 18-month time-period promulgation date to September 2026, allowing employers time to upgrade their Health & Safety requirements to comply with the new published regulatio ...moreStatistical shape modelling for population-specific respirator design: Addressing fit failure in South African populations
Respirators are widely regarded as the last line of defence against hazardous airborne exposures. Whether protecting healthcare workers from tuberculosis, laboratory personnel from infectious samples, or workers exposed to carcinogenic dusts and fumes, respirators are often relied upon when other controls cannot eliminate exposure. This r ...more
© S&V Publications
