A look at the new Nike CEO’s turnaround plan

New Nike CEO Elliot Hill had his first opportunity to address investors on Thursday and discuss the company’s second-quarter results. Despite a decline in sales, Hill remained optimistic during the meeting and unveiled the steps of a new turnaround plan to reposition the company. FashionUnited takes a closer look at the plans under Hill’s leadership.

In his opening remarks, Hill, who has been at the helm for two months, said he has an “irrational love for this company.” He stated that his “only goal is to get us back on track.” To achieve this, he met with everyone associated with the brand around the world – from employees to partners to consumers – to gather insights. The consistent feedback was: “We want to see more of what Nike is about.”

The crux of the problem, Hill said, is that Nike has “lost its obsession with sports.” This must now become the focus of decisions again. This should also be reflected in the fact that the athletes’ insights will be relied upon again to accelerate innovation and product development. With sport as our north star, we will revitalize our corporate culture and identity,” he continued.

Hill also pointed to changes in the company’s structure that he said have resulted in a shift in investment “from creating demand for our brand to generating demand through performance marketing for our Nike digital business.” brings with it the need to “create stories that inspire”.

He also pointed out that centralization has impacted resources in key countries and cities and therefore the company needs to plan for a reallocation of teams and resources at the group level. The digital sales will be used to rebuild an integrated marketplace that includes both Nike Direct and wholesale and will now adopt a consumer-focused format.

Nike is repositioning itself in the premium and sports segment

With these goals in mind, Hill outlined short-term measures the company will now take. This includes:

• Greater focus on specific sports: Nike will focus on “sports-focused teams” segmented by men’s, women’s and children’s to identify new opportunities and drive incremental growth by sport and gender.

• Return to franchise management: In response to increased demand for franchises, including the Kobe line, Hill wants Nike to more quickly return to a pull market for classic shoe franchises and develop lines that drive growth.

• Creative Marketing: To effectively represent the brand, creative marketing that leverages athletes and sporting moments will reflect more targeted investment in brand development. This includes “aggressive sports marketing” and a closer connection with specific regions that already have emotional connections to customers, athletes and influencers.

• Upgrading the marketplace: With Nike Direct traffic declining, both physical and digital, due to a lack of novelty, Hill intends to return to premium destinations that lead the sports industry with the aim of elevating the shopping experience and representation of the brand.

• Rebuilding relationships with trading partners: Hill acknowledged that Nike partners felt the brand had “turned its back” on them. Therefore, he announced his intention to regain the trust of existing partners such as JD Sports, Foot Locker and Sports Direct by investing more in their businesses.

Finally, Hill said: In his conclusion, Hill said: “Some of these measures are already underway, others need to be implemented more quickly. And I will continue to review and evaluate what is needed. I recognize that some of these actions will have a negative impact on our near-term results. But we see the whole thing in the long term. We make the decisions that are best for the health of our brands and businesses. Decisions that will increase company value. I firmly believe Nike’s path to sustainable, profitable growth is through sport.”