What was the reason for the separation?
As earlier before internet shopping was so much in trend, consumers were having brand knowledge only through TV commercials or magazine or newspaper advertisements, which made them buy the product. But as the fashion of online marketing increases, The craze of the brand among the people diminished and now people are focusing more on buying cheap products and they don’t feel mistaken as the review part on such online shopping sites made them feel that the decision of buying such cheap products is beneficial.
Nike’s deteriorating performance
As mentioned by The Forbes :
Earlier situation:–
Before 2017 (when they signed the deal) Nike focused all its attention on its branding of the products. For that, they advertise their products on their online networking sites and concentrate more on building their fame by self-work and not by any other sites/ platforms. Like other brands, they also had the fear of losing their customers through such a kind of partnership. The deal was made so that the consumers can get the benefit of directly purchasing whatever they want through the company. They don’t need to roam here and there in search of their favorite footwear.
What were the initial conditions of Nike?
What exactly were the problems that compelled the company to stop the project?
Conclusion
The two brands were together at a point in time but then one realises its deterioration, so to stabilize themselves and to save the company, Nike put an end to the project.
Why did the deal end?
What loss did the company face?
The decrease in their customers and the deteriorating graph of the company’s yearly performance. The people started losing interest in the brand and were concerned about the price too.
- Who are the shareholders of the company now?
The top shareholders of Nike are Phil Knight, Mark Parker, Andrew Campion, Swoosh LLC, Vanguard Group Inc., and BlackRock Inc.
- When did the deal end?
In November 2019, an official end to the deal was announced.
- What are gray-market goods?
According to the International Trademark Association, gray-market goods are manufactured by the brand owner but are sold through unofficial channels.
