This discussion dives into Nike's turbulent year, spotlighting declining sales and leadership changes, emphasizing competition from brands like Adidas. The challenges within beauty brands regarding transparency and social media controversies are also examined. Moreover, the rise of affiliate marketing for influencers and its legal battles is a hot topic. Finally, predictions for 2025 highlight the growing importance of values-driven purchasing and sustainability practices in fashion.
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Nike's Downfall
Nike had a challenging 2024, marked by declining sales and layoffs.
Tiger Woods, the face of Nike for 30 years, left the brand, symbolizing the company's struggles.
insights INSIGHT
Impact of Layoffs
Layoffs at Nike disproportionately affected veteran marketing staff who shaped the brand's golden era.
This loss of expertise contributed to the perceived staleness in marketing and product.
insights INSIGHT
Rise of Competitors
Nike's struggles in 2024 stemmed from viable alternatives emerging in the market.
Competitors like Adidas, Hoka, and On capitalized on Nike's perceived decline, offering innovative styles and high performance.
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As the year comes to a close, BoF’s executive editor Brian Baskin and senior correspondent Sheena Butler-Young look back on some of their favourite articles from 2024. The stories include topics that dominated industry conversations throughout the year, as well as some that have had key updates since publication.
Miller’s “How Nike Ran Off Course” topped the list of key stories from 2024. It was a trying year for the brand, marred by declining sales quarter after quarter. Many pointed to former CEO John Donahoe as the source, with marketing and product feeling stale since he joined in 2020. “This was the year where it really crystallized that there were viable alternatives to Nike in the market,” said Baskin, with competitors encroaching from all sides. Looking ahead, Butler-Young said “Nike is not resting on its laurels” and is doing a lot to try to “turn around a very large ship,” starting with selecting a new CEO, longtime Nike executive Elliott Hill.
Sarah Kent’s story, “Inside Luxury’s Italian Sweatshops Problem,” digs into this year’s viral scandal surrounding luxury brands’ labour practices. “It found that luxury brands that manufacture in Italy…routinely turn a blind eye to labour exploitation in their supply chain,” said Butler-Young. “They ignore red flags raised by audits and sustainability teams for the sake of convenience and cost.” Dior in particular faced social media backlash for “the disparity between what people pay for products and then some of the things that happen in the supply chain,” said Butler-Young. Next year, brands will face penalties for failing to comply with new European due diligence regulations.
Baskin and Butler-Young shared predictions for the industry in 2025. For Butler-Young, ESG and DEI will be key to watch as they “attempt to continue to take shape in a very hostile political environment,” said Butler-Young. Early adopters of DEI who stick with it despite ebbs and flows might benefit by being the most innovative in the space down the line. For Baskin, “My prediction is one of these big struggling brands … is going to successfully pull out of its slump,” he said, pointing to Nike as a potential winner.
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