Part 4/15:
As Nike's presence on physical shelves diminished, other brands seized the opportunity. Competitors such as Puma, Hoka, and New Balance gained ground, filling the gaps left by Nike's retreat. Consumers increasingly saw these alternatives as just as desirable, if not more so, especially as Nike’s market share through traditional retail channels shrank.
Excess Inventory and Discounting
During the pandemic, Nike flooded the market with products, leading to a 60% rise in North American inventory alone. Once the market became saturated, Nike was compelled to discount heavily, diminishing the brand's aura of scarcity and premium quality. Trainers that once sold out overnight were now available at lower prices, further eroding Nike’s perceived value.