Here Amazon is trying to become a bigger name in Fashion and on the other side brands are thinking about cutting off from the company. As Nike has recently announced that the company will no longer be saying their shoes and clothes on Amazon, the analysts are concerned that soon the other brands will follow up. Jefferies Analyst Randy Konik says, “Brands don’t need Amazon. Amazon had a delivery speed advantage, but that advantage has compressed. With Nike leaving Amazon platform… it strengthens our view that retailers and brands won’t be displaced by Amazon.”
Nike has decided to leave the company and stop selling its products on the e-commerce website in order to follow their new marketing strategy. The company has recently hired a new CEO John Donahoe who earlier served as an executive at eBay. Nike is ending the company’s pilot program with the e-commerce giant that started in the year 2017. As said by the company they are now focusing on the elevation of the consumer behaviors and therefore they want to change a few things.
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The analyst continued by saying, “The move shows us that strong brands realize that traffic is driven to their own site example Nike.com is self-sustaining, more profitable, and actually brand-enhancing, while traffic and incremental revenue from Amazon.com is less profitable but also less brand enhancing.”
And now he is thinking that other big brands will also follow Nike and will end up breaking up with Amazon. “We believe much strong apparel and even non-apparel brands will continue to avoid or curb their relationships with Amazon in the future,” he added.