How Nike’s Relenting Highlights the Change in Retail
Nike had long been one of the biggest retail industry holdouts from selling on Amazon. The Portland-based company steadfastly resisted having its merchandise sold directly through Amazon (though it was sold by secondary sellers). However, very recently it relented despite its worries over a lack of pricing control and display. For Nike, the deluge of its products being sold on Amazon through middlemen had become so strong (it is the most purchased apparel brand on Amazon), that it seemed to realize it had lost control of pricing and display in spite of its efforts. The same appears to have happened to other brands, like Patagonia, North Face, and Chanel.
FINSUM : This is a sign that Amazon is growing so dominant that it is creating its own gravity, where the site's popularity compels retailers to give-in despite reservations.
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