What Went Wrong with Nike? How the King Messed Up and ON Got Its Chance

Nike is a cultural icon, a fashion staple, and the undisputed king of sportswear for decades. Its reign, from Air Jordans to high-tech running shoes, seemed unassailable. But in the last few years, a strange shift occurred: the giant began to falter, a stark contrast to its former glory. So what exactly went wrong with Nike, a brand that seemed invincible?

The Foot Locker Fallout: A Dangerous Move for Power

Nike made one of its most daring (and possibly risky) moves when it cut ties with big retailers like Foot Locker. The brand wanted to focus on direct-to-consumer (DTC) sales, a strategy where companies sell their products directly to consumers through their stores and apps, bypassing traditional retail channels. It made sense on paper. Why let intermediaries take some of the attention and money when you could control the whole thing? But things were more complicated in real life. Foot Locker was more than just a store; it was a hub of discovery for new trends and products. It was where kids tried on their first pair of shoes, sneakerheads stood in line for new releases, and casual shoppers found their next favorite pair. When Nike departed, it wasn't just shoes that were taken away, but also a significant part of its presence. Sales were slow. Something new began to fill shelves in other places.

Enter ON: The Quiet Killer

While Nike was rethinking its empire, ON was quietly making progress.

ON started in Switzerland with a niche focus on tech-driven, super-comfortable running shoes with a unique design. Their famous 'cloud pods', a cushioning system that provides a soft landing and a firm take-off, were not only cool to look at, but they also worked. Runners loved them for their performance, then lifestyle influencers did too, and all of a sudden, ON shoes were everywhere, from gyms to coffee shops. But ON didn't just fill a gap; they took advantage of Nike's absence. While Nike pulled back from stores, ON moved in. Foot Locker, Nordstrom, and other specialty stores all welcomed ON with open arms. And the brand's reputation grew with each box that sold. ON is no longer just a niche brand; it's a real competitor now! ON feels new, high-end, and purposeful, especially to Gen Z and millennials.

Nike's Mistakes: More Than Just One Step. There was more than just the Foot Locker split. Other mistakes have made Nike's journey harder:

• After the pandemic, the supply chain isn't working right, which leads to inconsistent stock and delays.

• Making too many of some lines, flooding stores, and lowering the brand's value. • Marketing moves that were confusing and not as effective as past ones. Where is the "Just Do It" magic that gives you goosebumps?

• And maybe most importantly, the loss of cultural edge. Nike used to be a trendsetter, but now it might just be expected.

  
  

What's next?

Nike is still a strong brand. Its direct-to-consumer channels are getting bigger. It still has a vast global reach. And when it does hit, it hits. Just look at how well Air Jordan drops and Nike x Travis Scott collabs are still doing. But brands like ON, HOKA, and even New Balance are showing something important: there is room at the top, and customers are more open than ever.

Last Thought

Nike isn't going to fall apart, but this might be the wake-up call it didn't know it needed. The question is whether Nike will fight to get its crown back or just give it up without a fight.

Arman POUREISA

Marketing Manager

Business Management Lecturer

Raffles Jakarta

Reference

Brown, N. P., & Rajesh, A. M. (2025, March 19). Nike to post worst revenue fall in 5 years on stagnant demand. Reuters. https://www.reuters.com/business/retail-consumer/nike-post-worst-revenue-fall-5-years-stagnant-demand-2025-03-19/