According to Reuters, Nike’s pilot program to sell certain products on Amazon and Instagram is a precursor to it forging a deeper relationship with online retailers, and could hit sales at sporting goods retailers such as Foot Locker Inc.
Questions:
1. What are the benefits of this deal for Nike?
2. How is Nike trying to strike a balance on this deal and not hurt sporting goods retailers as much?
3. Nike still depends on the wholesale channel for what amount of revenue?
Source:
Ganesan, G. (2017). Nike-Amazon deal may hurt sporting goods retailers: analysts. Reuters.com, June 30 (Retrievable online at http://www.reuters.com/article/us-nike-amazon-com-idUSKBN19L2LO)