Nike is the largest manufacturer of sports equipment in the world, and sponsors the greatest athletes globally. This American company, founded in 1972 by Phil Knight and Bill Bowerman established this image, especially in the 1970s, in the context of the development of sports entertainment.
In 1981 Nike became the number 1 sport shoe manufacturer in the U.S., and went public that year. Today, Nike has 675,000 employees worldwide and the sales of the group in 2006 were 15 trillion dollars, an increase of 9% over the previous year. The group also has 6 subsidiaries, which are the Cole Haan Holdings, Nike Bauer Hockey, Hurley International LLC, Nike IHM, Converse, and Exeter Brands Group LLC.
The demand is mainly on the European market with three countries dominating Britain, France and Germany, representing 68% of sales of athletic footwear and 77% of clothing sales in 1992.
It is noticed that growth in sales of shoes is more than encouraging in Spain. Regarding the differences in demand based products, demand for shoes, the brand does not know the same growth as that of textiles.
There is also a pronounced seasonality of Nike products. In summer and fall, sales tend to increase significantly which causes a duty to inventory management in order not to mass produce during peak demand.
Subsequently Nike delivers small quantities of products to retailers to compensate for the shortcomings of its previous forecasts. Nike intends to streamline its production effect by asking retailers to estimate the volume of products they discharge during the coming seasons. In addition, the group separates shipments of textiles and footwear, being careful never to regroup.
For its distribution channel, Nike has chosen to work with specialist distributors of sport. These can be specialist outlets or retailers of sportswear known as Olympus in Britain or Decathlon in France .
These same retailers are also potent Nike abroad mostly. This increases the possibilities of locating in other European countries where Nike had lower sales in 1992. The group tries to develop its sales in particular in Italy and Spain.
The European markets are important, so the brand chose to be present through major retailer specialists, leaders in the sports market, as distribution networks.
In these countries, retailers have their own distribution channels and buy centrally. In the United Kingdom, for example, the top 20 places in distribution represents more than 50% of sales for Nike.
Tags: Nike, retailing, distribution in Europe
[...] This American company founded in 1972 by Bill Bowerman and Phil Knight has emerged in this way especially in the 1970s in a context of development of sports entertainment. In 1981 Nike became the number 1 sports shoe in the U.S. and went public the same year. Today, Nike has 675,000 employees worldwide and turnover of the group in 2006 was $ 15 trillion, an increase of over the previous year. The group also has six subsidiaries: Cole Haan Holdings, Nike Bauer Hockey, Hurley International LLC, Nike IHM, Converse, Exeter Brands Group LLC. [...]
[...] In the UK, for example, the top 20 addresses distribution represents more than 50% of Nike sales. ¬ The benefits of specialist distributors For Nike, it is important to select specialist retailers of sports. The brand wants to keep an image of quality and expertise of its products and wants to avoid trivializing its products, which could at the same time to reduce the selling price of products. Olympus decathlon or retail mix.The customer must get there by itself, but in return, this type of distribution channel ensures quality advice and services unmatched in the supermarkets (hypermarkets and supermarkets).The customer receives the best advice on sport and the higher price is justified as the product. [...]
[...] Distributors should multiply in all European countries, starting with the South and the North (Norway, Sweden . Each country has its own warehouse, but today, Nike combines in a single center's 25 European centers. Nike will seek to homogenize its stocks in each European country, including SKUs. Moreover, in recent years, Nike changed its outlets.There are shops "NikeTown" official shop of the U.S. giant that sells only its own products.The brand thus does not need to appeal to independent distributors and is much more free in his actions. [...]
[...] ) pummel the entire distribution channel and supply. • The establishment of a "cross-docking" in each country, which would burst the distribution of more locally. • Nike could start, or rather continue its expansion in terms of online sales (current ability to make and customize your shoes). Nike would find its interest because the products are sold before they are manufactured. And storage costs are low or nonexistent. • Establish an information system (eg SAS) that would track the evolution of orders.This tracking system would not only allow retailers to track their orders, but in addition they could modify and supplement ongoing. [...]
[...] Part Two: Recommendations 2.1 ) Financial Statements Base Case: National Warehouse (In millions Upstream Storage Downstream Total of dollars Transportatio Transport per year) n Costs are relatively high because each uses its own warehouse operating and administrative tasks. However, transportation costs may decrease due to the proximity of the warehouse from the distributor. One European Distribution Center (In millions Upstream Storage Downstream Total of dollars Transportatio Transport per year) n The total costs of a central distribution center are lower. Costs for upstream transport decreases because Nike does not deliver a single storage location. [...]
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