{"id":693,"date":"2025-09-04T07:33:58","date_gmt":"2025-09-04T05:33:58","guid":{"rendered":"https:\/\/www.nutrimedia.info\/?post_type=news&p=693"},"modified":"2025-09-02T17:21:26","modified_gmt":"2025-09-02T15:21:26","slug":"nike-roism-how-the-kings-obsession-killed-25-billion-in-value","status":"publish","type":"news","link":"https:\/\/www.nutrimedia.info\/en\/news\/roisme-nike-comment-lobsession-du-roi-a-tue-25-milliards-de-valeur\/","title":{"rendered":"Acute ROI: what is your level of risk compared with Nike?"},"content":{"rendered":"

The Nike case reveals a particularly virulent modern syndrome in the B2B ecosystem: acute ROIsm. This metric obsession has metabolised 25 billion dollars of market capitalisation. We take a closer look at an organisational pathology with clearly identified symptoms.<\/strong><\/p>\n\n\n\n

Anatomy of the ROIsme: degradation mechanisms<\/strong><\/h2>\n\n\n\n

I like to talk about Nike, not because I'm fascinated by the brand, but because it has often given lessons in marketing with a very specific approach. creative storytelling <\/a>and authentic. But in recent years, the tide has turned. And as Th\u00e9o Lion's analysis shows, the fall has been vertiginous, due to poor strategic choices that have led to a denial of the brand's DNA. A brief history.<\/p>\n\n\n\n

Phase 1: The algorithmic mutation (2020)<\/strong><\/h3>\n\n\n\n

John Donahoe is transforming Nike into a tech company, replacing sector expertise with data-driven governance. This transition is akin to replacing an experienced nutritionist with a calorie-calculation algorithm: technically functional, nutritionally disastrous.<\/p>\n\n\n\n

Symptoms observed :<\/strong><\/p>\n\n\n\n

    \n
  • Abandonment of organisation by sport in favour of gendered segmentation<\/li>\n\n\n\n
  • Subordinating product innovation to digital performance<\/li>\n\n\n\n
  • Algorithmisation of creative decisions<\/li>\n<\/ul>\n\n\n\n

    Phase 2: The explosion of hidden costs<\/strong><\/h3>\n\n\n\n

    The direct-to-consumer strategy generates unanticipated side effects, such as incorrectly dosed supplements causing deficiencies elsewhere:<\/p>\n\n\n\n

      \n
    • Decline in gross margin :<\/strong> -2.1 points (45.6% \u2192 43.5%) between 2019 and 2023<\/li>\n\n\n\n
    • Logistical explosion :<\/strong> individual delivery costs vs. group distribution<\/li>\n\n\n\n
    • Increased rate of returns :<\/strong> no prior physical fitting<\/li>\n\n\n\n
    • Additional advertising costs :<\/strong> dependence on Facebook\/Google platforms<\/li>\n<\/ul>\n\n\n\n

      In a nutshell:<\/strong> digital optimisation boosts direct sales, but puts a strain on the cost structure.<\/p>\n\n\n\n

      Brand health indicators at a low ebb<\/strong><\/h2>\n\n\n\n

      The KPIs reveal a chronic lack of brand building:<\/p>\n\n\n\n

        \n
      • Spontaneous awareness :<\/strong> -23% (2020-2023)<\/li>\n\n\n\n
      • Social commitment :<\/strong> -45%<\/li>\n\n\n\n
      • Net Promoter Score :<\/strong> 72 \u2192 41 points<\/li>\n\n\n\n
      • No memorable campaign<\/strong> since 2018<\/li>\n<\/ul>\n\n\n\n

        The ratio of brand building to marketing performance has fallen from 60\/40 to 20\/80 - a disaster, albeit a predictable one. How do you measure the thrill of an emotion?\u00bb asks a former Nike creative director. This question reveals the impossibility of quantifying emotional impact using traditional ROI tools.<\/p>\n\n\n\n

        Systemic effects of ROI: when local performance harms the global organisation<\/strong><\/h2>\n\n\n\n

        But that's not the end of it, far from it, as the effect is felt on a human level.<\/p>\n\n\n\n

        Cannibalisation of the distribution network<\/strong><\/h3>\n\n\n\n

        The closure of 15,000 wholesale outlets is generating a domino effect:<\/p>\n\n\n\n

          \n
        • Customer migration<\/strong> vers Hoka, On Running, Lululemon<\/li>\n\n\n\n
        • Erosion of running market share :<\/strong> 47% \u2192 31%<\/li>\n\n\n\n
        • Falling share price :<\/strong> 102$ \u2192 78.50$ at opening<\/li>\n<\/ul>\n\n\n\n

          Talent drain: a haemorrhage of skills<\/strong><\/h3>\n\n\n\n

          The departure of sector experts to the competition is creating a depletion of human capital.<\/p>\n\n\n\n

          The anti-ROIsm cure<\/strong><\/h2>\n\n\n\n

          It is starting too late and its effects will only be felt in the long term. Judge for yourself:<\/p>\n\n\n\n

          Detox phase (2024-2025)<\/strong><\/h3>\n\n\n\n

          Nike is beginning a gradual weaning process with a four-stage protocol:<\/p>\n\n\n\n

          1. Relational rehabilitation<\/strong><\/p>\n\n\n\n

            \n
          • Restoration of retail partnerships (Foot Locker, Macy's)<\/li>\n\n\n\n
          • Reintroduction of sports divisions (\u00abFields of Play\u00bb)<\/li>\n<\/ul>\n\n\n\n

            2. R&D supplementation<\/strong><\/p>\n\n\n\n

              \n
            • Injection of 500 M$ in research & development<\/li>\n\n\n\n
            • Back to differentiating product innovation<\/li>\n<\/ul>\n\n\n\n

              3. Marketing rebalancing<\/strong><\/p>\n\n\n\n

                \n
              • +40% brand building budget planned for 2025<\/li>\n\n\n\n
              • 2024 Olympic campaign \u00abWinning isn't for everyone\u00bb: a return to emotional codes<\/li>\n<\/ul>\n\n\n\n

                4. Rebuilding the ecosystem<\/strong><\/p>\n\n\n\n

                  \n
                • Signature Mbapp\u00e9: reinvesting in sporting iconography<\/li>\n\n\n\n
                • Diversification of contact channels<\/li>\n<\/ul>\n\n\n\n

                  Prognosis for recovery: 5-10 years according to experts<\/strong><\/h3>\n\n\n\n

                  Analyst Matt Powell estimates the recovery time at between 5 and 10 years - the time needed to regenerate ecosystem confidence and rebuild competitive advantage.<\/p>\n\n\n\n

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