Amazon finally strikes a ‘pilot partnership’ deal with Nike, sportswear giant likely to reclaim U.S. market share
Date: 2017-06-30   Author: Shikha Sinha  Category: #market

Amazon finally strikes a ‘pilot partnership’ deal with Nike, sportswear giant likely to reclaim U.S. market share

The e-commerce industry witnessed another coup with the collaboration of Nike and Amazon that will enable the former to sell its product directly through the online retail giant. Once dubbed as ‘retail rivals’, Nike and Amazon have finally come to an agreement where the sportswear magnate would run a pilot program to sell an assorted section of its products directly through Amazon’s website. Reportedly, prior to this deal, Nike has been declining multiple collaboration pitches from Amazon.

As per reliable sources, the pilot partnership between the two biggest retailers carries a blend of risks as well as benefits for the sports apparel behemoth, Nike. The biggest perk of the deal includes Nike’s access to a huge 80 million U.S. customer base of Amazon, with a majority falling under the prime membership category. In an era witnessing an unstable scenario for the sporting goods retail companies and departmental stores, this collaboration will provide Nike with a broader distribution channel and a strategic and refined brand marketing. 

Sources also cite that Nike, through this deal will have a profound leverage to dictate the merchandising specifics of its products. Allegedly, Amazon despite having no affiliation with Nike, had a record of Nike being the most-purchased brand on its website. The e-commerce website is a lucrative marketplace for the third-party suppliers who are indulged in selling these ‘branded’ products. Purportedly, these products also carried a tag of counterfeit items, an issue Amazon has been battling over ever since it allowed Chinese manufacturers to vend directly to the U.S. consumer base on its website.

However, this association also poses a threat to Nike pertaining to the transactional denomination of its products. Amazon’s business layout which is based on serving customers with the best rates and easy transactions is likely to have a clash with Nike’s equity balance, and the latter would undergo a huge pressure for discounting its products, which would be counter to Nike’s premium brand image.

Nonetheless, Nike’s ‘cautious’ pilot program was rather a necessity for the sports apparel giant, realizing the huge marketplace the e-commerce industry has built over the years. Sources further state that this is indeed a thoughtful step by Nike after losing its shares to Adidas, its chief rival- slated to be a part of Amazon’s Prime Wardrobe.

Reportedly, Adidas has been grabbing a major percentage of U.S. market share from Nike, though the latter is still the #1 sports apparel seller in America. However, after a dip in Nike’s U.S. share from 2011 to 2015, Adidas has doubled its share y-o-y from 6.3% in May 2016 to 11.3% in May 2017- conveniently at Nike’s expense.



About Author


Shikha Sinha

Shikha Sinha

Shikha currently manages the content team at AlgosOnline. An electrical & electronics engineer by education, she has prior experience in content & technology writing, content marketing, market research, and business development domains. Her other interests inc...

Read More

More from Shikha


Post Recommendents

Asphalt Mixing Plants Market Trend & Growth Forecast 2018-2024 By Application - Road Construction
Author: Rahul Varpe

Asia Pacific Asphalt Mixing Plants Market generated revenue over USD 2.5 billion and is foreseen to hold a major share of the market pie over the coming years. Owing to the robust growth in the countries of Asia Pacifi...


Painting Tools Market Trend & Growth Forecast 2018-2024 By Product - Brushes, Rollers, Scrapers, Knives, Trays, Spray Gun, Masking Tapes
Author: Rahul Varpe

Painting tools market share from construction applications is predicted to surpass a revenue collection of USD 10 billion by 2024, owing to the increasing industrialization and escalating housing need of the rapidly gr...


Building Thermal Insulation Market Trend & Growth Forecast 2018-2024 By Material - Wool Insulation, Plastic Foams
Author: Rahul Varpe

Building Thermal Insulation Market size from roof applications will grow at a rate of nearly 4% over the period of 2017-2024. The growth can be credited to the high demand for flat roofs in the commercial buildings. Fl...