Nike Slam Dunks in Online Sales

Nike, the athletic footwear conglomerate has announced that they are doing rather well, online. Nike’s US chief executive Mark Parker has stated that the company is seeing “a fairly dramatic increase in online sales.”

 

Parker announced the news to a panel at the World Economic Forum annual meeting.

 

Conclusions could be made that Nike is experiencing a sharp increase in online sales, driven in part by cost-conscious shoppers conserving gasoline. With consumers looking for ways to save money and gas prices now on the rise again, a leisurely drive is now out of the question.

 

The company last month reported a nine percent rise in quarterly net profit showcasing that they are solid and secure from the current global economic crisis.

 

Industry analysts say the online sector continues to grow as more shoppers opt to shop on the Internet for convenience and the ability to compare bargains.

 

Most recently, Nike sported a deal with the University of Richmond in Virginia.

 

According to Martin Newton, Nike's college basketball sports marketing manager, Richmond became attractive to Nike as the company changed its business model.

 

"In the past, we didn't have necessarily the resources to go to that high-mid-major level and do an all-sports deal," Newton said. "The all-sports deals were kind of reserved for the BCS-type schools. I think now we have a model and a service system in place where we can take care of those schools [such as UR] and service.”

 

Newton said Richmond was interested in an all-sports setup to simplify its uniform, shoe, and gear-sales situations.

 

"From a student-athlete's standpoint, they're going to be -- and I'm prejudice, but I think our sales and our numbers kind of show -- that they're going to be in the absolute best product and apparel in the world," Newton said. "That's across the board. That's just not the football team and the basketball team. That's all of their athletes."

 

Nike will provide each Spiders team with shoes, uniforms and other gear as part of what UR Athletic Director Jim Miller said is a "long-term deal."

 

According to the Richmond Times Dispatch, it’s believed to be a five-year pact. The deal is expected to kick in with the 2009-10 school year.