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 A worrying Nike development

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Billsfan
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PostSubject: A worrying Nike development   Mon Feb 20 2012, 12:16

Check out this article
http://www.nj.com/business/index.ssf/2012/02/nike_shutting_small_stores_out.html

I think we were all looking forward to Nike taking over from Reebok, but this is not very encouraging at all.

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PostSubject: Re: A worrying Nike development   Mon Feb 20 2012, 18:33

That truly is worrying. I don't really get why nike would want to shut down all those small stores. If they really stay on this course many small businesses, which make their living out of selling jerseys will have to close...and for no comprehensable reason.
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PostSubject: Re: A worrying Nike development   Mon Feb 20 2012, 19:00

That's kind of sad if that is the case. The only reason I could think of for doing this would be to control sales in order to try and reduce the fake jerseys being sold. I've been into a bunch of small sports stores here in Toronto and they are wall to wall with fake jerseys. It amazed me that stores were able to openly sell such fake produce (we're talking about store fronts on main roads here - not down some seedy alleyway.) I noticed the same thing in US malls.

Perhaps in Nike's mind, this will allow them to monitor / prevent such thing, as any independent store selling Nike NFL jerseys would be 100% fake and therefore bang to rights. I'm not saying I agree with this approach - that's just my best guess as to why they may be taking such a measure. Unfortunately, it's clearly the legit independent retailers that pay the price for this.
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PostSubject: Re: A worrying Nike development   Mon Feb 20 2012, 19:30

Yes that may be one reason. Of course it's bad when stores on main roads sell fake jerseys, but in such a store you may have look at the jersey and most of the time you see if it's fake or not (at least if you are interessted in jerseys). The biggest problem in my opinion are the online stores/ebay sellers, because you don't get to see the jersey until it arrived, and at this point it's already too late. If you buy a fake jersey in a store you can bring it back and get a refund. So maybe nike is trying to solve the fake jersey problem, but i think it's only a small part of the problem they solve with that, by creating a new one for those many small business owners, who make their living (partly) from selling jerseys
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PostSubject: Re: A worrying Nike development   Mon Feb 20 2012, 23:50

I think that the actual reason has nothing to do with fakes, and everything to do with overhead. If they cut off smaller margin stores, you spend less shipping to them. Demand staying the same, the customer then has to either go to the big box retailer (which they're already shipping to) or they order online (where you overpay directly for shipping).
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PostSubject: Re: A worrying Nike development   Tue Feb 21 2012, 00:40

I agree with Jigo, I don't think it has anything to do with controlling the counterfeit industry. It is too well ingrained now, the fakers will just switch from the Reebok vector to the Nike swoosh. It has everything to do with maximising the profit.

I can see where this could have a knock on effect to the fake trade, but only as a by product and not the main reason.

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