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JeffHarbaugh
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16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
The difference between Burton and Nike is that Burton needs the core shops a lot more. Remember- think like Nike. They are $11 (or is it $15- whatever) billion in revenue. Every thing they do is to grow that broader market and build their credibility. Burton sells snowboards, snowboard equipment and snowboard apparel to snowboarders. Mostly. Nike sells shoes and apparel to, well, everybody. If I were Nike, I think I'd work hard to maintain my core skate market credibility in the belief that it would generate sales of other Nike product that far exceeds what they can sell in skate shoes. But then, I don't get out very much.
Thanks,
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
Thanks- It's always good when somebody with real, actual numbers clarifies things. How did you resist the temptation to talk about gross margin return on inventory investment?
J.
16 years ago @ Transworld Business - Market Watch: Zumiez's... · 0 replies · +1 points
Sometimes it's so great to be able to post anonymously. Uh, as long as it wasn't me you were calling an idiot.
thanks,
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
I think you and I are in violent agreement here. All they have the resources and credbility to do is try and protect the hard core market- even if that limits their growth potential. What growth there is for them has to come from building credibility and importance around the core and expanding that piece of the market.
Hope we have the opportunity to continue this conversation over a beer sometime.
J.
16 years ago @ Transworld Business - Market Watch: Zumiez's... · 0 replies · +1 points
Well, I'm guessing all the people who shop there give a fuck. Whether we like it or not. And there seem to be enough of them that Zumiez has managed to open 390 or so shops and make a profitable business out of it so I guess somebody gives a fuck.
And you're right- I don't spend as much time as I'd like talking to core shops.
thanks for the comment.
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 8 replies · +1 points
Retailers, of course, will and should take as much Nike as they can as long as it sells quickly and at good margins and doesn't make them into a nike store, which I think is your point. If they sell well, then they are not too expensive. When distribution gets out of control, they won't sell so well, or at least not at the same prices. As we evaluate Nike and their action sports strategy, we need to think like a worldwide, multibillion giant and not like the skate industry. If Nike's whole plan was to sell just to specialty stores, the market wouldn't be be big enough to interest them.
You're right to caution retailers about over dependence on Nike, or any other brand. Brands move out of specialty and into broader distribution. That's how it's always been. Nike may just move a little faster.
Thanks,
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 2 replies · +1 points
If your numbers are good, and given current economic conditions, it may be too late for a bunch of the "core" brands to take your advice. My concern is that most of them don't have the balance sheets to pursue your strategy. And at this point, they'd be playing catch up which is hard to do on a level playing field and perhaps damn near impossible against Nike and VF. I suspect that a more viable strategy is to hunker down and protect the market they've got left, and making those different shoes (perceived as very risky no doubt) might be a way to start.
Thanks for the comment.
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
J.
16 years ago @ Transworld Business - Market Watch: Nike's Q... · 0 replies · +1 points
I'm afraid I can't be much help on that one. I imagine you just have a bunch of phone and email work ahead of you to make the people who advertise on sites like yours aware that you exist.
J.
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