Yes you read that correctly. The sneaker giant is changing their strategy for 2019 and beyond.
As per Business Insider South Africa Nike plans to manufacture and market footwear at lower price points moving forward. The new game plan was announced by CEO Mark Parker over a recent earnings call last week. “As we broaden platforms across categories, we’re also broadening them across price points to bring them to more people,” he explained. “We see greater opportunities for moderately priced footwear from Nike right now.”
Parker did not detail what the new pricing structure but the executive did reveal that they will plan to release economical versions of their signature models including the React and Air Max. Additionally Nike will have tailored marketing plans to improve the “storytelling” behind these low-ticket sneakers.
Another announcement made on the call is that the sportswear brand will be making yoga apparel for men. The launch is an attempt at cashing in the menswear category that is dominated by Lululemon which is estimated to gross over 1 billion dollars by 2020.
While the news is sure to be welcomed by the middle and lower class do not expect Nike to completely cease marketing pricey sneakers in limited quantities. The Oregon based company reported a 10% gain year over year when discussing their second quarter results which translates to more limited-edition releases and Jordan retro’s. But you knew that already.