商品敘述：

Set in 2024, this case examines Nike''s adoption of the Consumer Direct Offense (CDO) strategy to accelerate the growth and impact of its direct-to-consumer (DTC) model. Through CDO, the company sought to deepen its consumer connections by offering a direct and curated shopping experience, as well as increase its profitability. Nike implemented several measures, including restructuring and re-organisation of its operations, acquisition of new digital capabilities, development of an omni-channel supply chain and direct retail network, radical cut back on its long-standing wholesale distribution and ramping up of the product innovation pipeline. Early signs of success were evident in fiscal years 2021 and 2022, with the rise in Nike''s net income and gross margin primarily on account of growth in direct revenues. However, over 2022-2023, Nike faced an unexpected slowdown in consumer demand, resulting in significant inventory accumulation of both seasonal and off-season products. In fiscal year 2023, the company gross margins declined, while its net income fell for the first time, with a 16% year-on-year drop. While Nike was not alone in this challenging time, unlike others, it did not have enough representation in third party retail to alleviate its inventory, and its absence from the multi-brand retail shelves led consumers to opt for competitor brands that they could try out and compare before buying. In fiscal year 2024, with the downward trend continuing, Nike needed to pause and reflect on its CDO strategy. Should the company continue with this approach or adjust certain elements to better align its marketplace with customer preferences? What was the ideal long-term balance between DTC and wholesale distribution that Nike should target moving forward? Alternatively, should Nike abandon the strategy entirely and return to its earlier ''lean and flexible'' model, refocusing on product innovation and brand marketing?

涵蓋領域：

Customer experience;Customer strategy;Digital transformation;Innovation;Marketing analytics;Operations and supply chain management;Product distribution;Strategic positioning

相關資料：

, (177SMU), p, by Ernst C. Osinga, Sandeep R. Chandukala, Sheetal Mittal

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