--- title: "How Nike Lost Its Footing—and What We Can Learn" description: "How Nike's direct-to-consumer pivot opened the door for Hoka, On and Allbirds, and what firms can learn about protecting relationships and partnerships." url: https://www.milemarker.co/resources/newsletter/how-nike-lost-its-footing%E2%80%94and-what-we-can-learn updated: 2024-10-19 --- [Newsletter](https://www.milemarker.co/resources/newsletter) The Rising Tide Oct 19, 2024 # How Nike Lost Its Footing—and What We Can Learn How Nike Lost Its Footing—and What We Can Learn **Jud Mackrill**CEO & Cofounder Quick question: When was the last time you laced up a pair of Nikes? For decades, Nike has been *the* go-to brand. The iconic swoosh. “Just Do It.” Michael Jordan flying through the air. Chances are, you’ve got some Nike gear in your closet right now. But here’s the thing: Over the past few years, Nike has been stumbling. Their market cap has taken a hit, dropping significantly from its peak. Meanwhile, new brands are sprinting ahead. **So, what happened?** Let’s rewind. If you’ve read Phil Knight’s memoir, **“Shoe Dog,”** you know Nike’s story is all about grit, relationships, and partnerships. It was built day by day, handshake by handshake. Nike didn’t just make shoes; they forged alliances with retailers, suppliers, and athletes. They created an ecosystem. Then came a shift. Under CEO **John Donahoe** (former eBay chief), Nike decided to go all-in on direct-to-consumer sales. They started pulling their products from big retailers like **Dick’s Sporting Goods**, **Zappos**, and **Amazon**. The idea was to control their brand narrative and boost profits through their own channels—like the **SNKRS app** and Nike’s own stores. Sounds like a smart move. Cut out the middleman. Own the customer relationship. But there was a catch: When Nike stepped back, other brands stepped up. **Enter the new players:** • **Hoka One One**—those chunky-soled running shoes you see everywhere now. • **On Running**—the Swiss brand with the funky soles. • **Allbirds**—comfortable, eco-friendly kicks. • **Brooks**—no longer just for die-hard runners. These brands filled the shelves Nike left behind. Customers tried them—and liked them. Some even loved them. **The Lesson?** Isolation can be costly. By fencing themselves off, Nike lost the ubiquity that made them a household name. They underestimated the power of partnerships and overestimated the loyalty of customers in a market overflowing with choices. **What Can We Learn?** 1. **Don’t Burn Bridges** Partnerships amplify your reach. When you isolate yourself, you might keep more control, but you also limit your exposure. Collaboration can be a powerful growth engine. 2. **Diversify Your Channels** Relying on a single path—whether it’s direct sales, a specific platform, or a single client—is risky. Spread out. Be where your customers are, not just where you want them to be. 3. **Stay True to Your Roots** Remember what got you here. For Nike, it was community, relationships, and being accessible. They built a brand *with* people, not just *for* people. 4. **Adapt Without Abandoning** Embrace new strategies, but don’t ditch the old ones that still work. It’s about integration, not replacement. **Looking Ahead** Nike has the opportunity to course-correct. Re-engage with partners. Balance direct sales with broader distribution. Rebuild the ecosystem that made them a titan in the first place. **Over to You** How does this resonate with you? Are there areas in your business or life where you’ve isolated when you could have collaborated? And on a lighter note—have you found yourself wearing new shoe brands lately? Maybe a pair of Hokas or Ons? Where did you discover them? Hit reply and let me know. I’m genuinely curious. ## Subscribe to get insights and company news straight to your inbox. ## Read more [View all ↗](https://www.milemarker.co/resources/newsletter) [### Forging the Path Forward: How to Turn Shortcuts Into Express Lanes Forging the Path Forward: How to Turn Shortcuts Into Express Lanes Jud Mackrill • Oct 11, 2024](https://www.milemarker.co/resources/newsletter/forging-the-path-forward-how-to-turn-shortcuts-into-express-lanes) [### You’re Watching the Field, But Are You Watching the Score? You’re Watching the Field, But Are You Watching the Score? Jud Mackrill • Oct 4, 2024](https://www.milemarker.co/resources/newsletter/you%E2%80%99re-watching-the-field-but-are-you-watching-the-score)