Nike’s plan to sell shoes via In­sta­gram

Shoes & Accessories - - The Month That Was Updates | International -

Ray­mond James made Nike its”top pick” in the con­sumer sec­tor due to its re­cent ini­tia­tives to sell di­rectly to con­sumers on so­cial me­dia and e-com­merce plat­forms. The firm ini­ti­ated cov­er­age on the sports­wear com­pany’s shares with an out­per­form­ing rat­ing.”the grow­ing in­flu­ence of mil­len­ni­als is rad­i­cally trans­form­ing the sport­ing goods in­dus­try,” an­a­lyst Cedric Le­cas­ble wrote in a note to clients. “Nike’s ap­proach to so­cial me­dia and e-com­merce has rad­i­cally evolved for the bet­ter re­cently, in our view … Lead­ing brands’ on­line growth will out­pace re­tail­ers’ as they de­velop cus­tomiza­tion ca­pa­bil­i­ties (Nike and Adi­das lead the game) and im­prove their col­lab­o­ra­tion with Ama­zon.”

Nike re­ported fourth-quar­ter earn­ings and sales above Wall Street’s ex­pec­ta­tions last week. The com­pany con­firmed a new pi­lot deal with Ama­zon on its earn­ings call, where it will sell a lim­ited prod­uct as­sort­ment on the In­ter­net giant’s e-com­merce web­site. The firm also said it will start sell­ing its prod­uct di­rectly to con­sumers on In­sta­gram, which is owned by Face­book. The an­a­lyst cited how Nike “has by far the largest num­ber of fol­low­ers” onin­sta­gram ver­sus its com­peti­tors. He added the firm’s so­cial me­dia in­ter­ac­tions with cus­tomers are more than four times higher than Adi­das. Le­cas­ble also noted how Nike has more than 90 per­cent mar­ket share of the bas­ket­ball shoes mar­ket. Nearly the com­pany, ac­cord­ing to the an­a­lyst, spon­sors 75 per­cent of NBA play­ers.”as far as ath­letes’ en­dorse­ments are con­cerned, we be­lieve Nike is still at a com­pet­i­tive ad­van­tage ver­sus its main ri­vals. Strong in­fla­tion in ath­lete/ team en­dorse­ments has given a clear ad­van­tage to the player with the deep­est pock­ets,” he wrote.nike shares are up 13 per­cent this year ver­sus the S&P 500’s 8.7 per­cent re­turn.

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