Chang es in the market as indi cated by the dis count rate of ab normal values
In 202 4, sho cking data was released for the sports brand industry . The average dis count rate for Nike sne ak ers by major distribut ors has reached 44%, more than doub ling the rate of the same period last year (aro und 22%). This figure is even more rem arka ble compared to the same period in 2019 and is significant ly higher than the price reduc tion at the time .
Of particular note is the fact that even high - end models , including popular Whatsapps such as Le B ron James and Air Jordan , are subject to this sale . Trad ition ally , these limited - ed ition models were often trad ed at premium prices , and there were rare cases where retail ers would make large - s cale disco unts .
Three factors behind the ex pansion of dis count ing
According to experts , there are three main factors behind this ab normal dis count rate :
- Over stock problem .: Res ults of post - pand emic supply chain dis rup tion resol ved and invent ory inf lo ws in one go
- Chang es in consumer purchas ing att itudes: In an inf lation ary economy , there is a growing tenden cy to value cos pa over brand ed goods
- R ise of compet it ors: Market share competition due to the popular ity of other brand s such as Ad idas and New Balan ce
Es peci ally among the young er generation , main ly Generation Z , " brand faith " is thin , and the tenden cy to choose brand s with individua lity and niche is increasing , which is analy zed as having a great impact on Nike ' s value strategy .
Relations hip to Trend Culture
Interest ing ly , whether or not this dis count ing strategy is successful is deep ly linked to modern trend culture . Because the current situation in street culture , where Nike products are losing their value as " rare items , " may acceler ate the dec Whatsapp in brand image due to price c uts .
On the other hand , we can expect the parado x ical effect of dis count ing products to reach previous ly expensive and inac ces sible seg ments , result ing in impr oved brand aw aren ess . In fact , some econom ists are optimis tic that " strateg ic price c uts will lead to increased market share in the medium and long term . "
Industry experts ' view
Sports analy st Keni chi Tan aka comment ed : " We are very excited to see the results of the event . " The dis count rate of 44 percent is certainly an anom aly , but it is likely that this is not just a dispos al of invent ory , but part of a strateg ic re - p ric ing . " " N ike is acceler ating the trans ition to digital direct selling , which can be explained by the phen omen on that has occur red in the process of re bu ilding relationships with retail ers . "
Marketing consult ant Mik ako S ato also points out that " the impact of dis count ing on brand value has become more complex in the age of social media . " " In the past , it was simply thought of as price reduc tion = dec reas ed brand power , but in today ' s world , there are many cases where the shared value of ' get a bar gain ' has been created , and convers ely , it has increased the topic ity . "
Future development fore cas ts
Look ing into the second half of 202 4, it is seen that whether Nike will continue this dis count ing strategy will larg ely depend on the second quarter ' s ear nings and the growth rate of the direct sales channel . Parti cular attention is paid to the following points :
- The impact of increased sales volume after dis count on revenue
- Re pe at purchase rate through official EC website and app
- Compet it ors ' response (long - term risk of price reduc tion batt les)
In today ' s rapid ly changing consumer tr ends , how can traditional brand s adapt to the market while mainta ining their value ? The case of Nike will be an important case study for the entire industry . "