Amazon and Nike Join Hands for Mutual Benefit

Published By : 23 Jun 2017 | Published By : QYRESEARCH

Shares of several sports gear manufacturing plummeted to a 52-week low as the word about Nike likely to sell with Amazon.com got out. Big players such as Hibbett Sports Inc., Dick's Sporting Goods Inc., Finish Line Inc., Big 5 Sporting Goods Corp., and Foot Locker Inc., saw a major drop as Nike dropped the bomb of reaching out to a wider audience with Amazon. Goldman Sachs, the investment banking giant, stated that the deal with Nike the exposure to Amazon’s mammoth retail distribution channel and an ever-growing consumer base. Amazon’s consumer base is being defined by the millennials, who have become an integral part of the spending culture across the globe.

Currently, Nike goods are sold via Zappos.com, which happens to be Amazon’s subsidiary. Nike shoes and other sporting gear is also found through third-party sellers on Amazon.com. However, the deal will give the brand a brilliant opportunity to make a worthy impression on potential buyers. The others are viewing this deal to be of disruptive nature in the foreseeable future.

Amazon’s Disruptive Moves threaten other Retailers

The announcement to buy Whole Foods at US$13.7 billion was another disruptive move by Amazon, which caused shares of grocery-selling companies such as Kroger Co. Retail to drop significantly. The increasing trend of shopping online has threatened several retail outlet chains. The online giant also spoke of launching an Amazon Wardrobe program for its Prime customers. The wardrobe program will allow customers to order clothes without paying up front and keep them for a week, only to return the ones they don’t want and pay for the remaining. Amazon’s intuitive techniques to grab attention its consumers base is only going to make things tougher for other retailers.

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