After finishing a c round of $ 60 million financing last year, nike free run 2 announced it would 80% per cent of the funds for the construction of logistics and warehousing. On October 15, 2011, Nike officially launched since the establishment of logistics, in some first-tier cities such as wider distribution in the North, and plans in 2012 to be extended to more than 30 cities. After construction of warehousing inventory, product entities, since the establishment of logistics has the Nike completely into cash-strapped, profitability plummet into a loss.
And return rate high more is led to nike free run of operations situation worse, due to excessive imitation Zappos "three double shoes policy" intensified return rate of line rose: "three double shoes policy" is consumer can in online ordered three double shoes, express door try wear Hou, consumer can will also two double does not satisfaction of shoes returned, Nike is modeled on implementation "two double shoes" policy, customer experience improve of while, needs bear of additional funds and stock risk also rose has,http://www.nikefreerunx2012.com/ because total has double of Nike channel in, Freight 75%, extra shoes en route distribution round trip, also reduces the sales opportunity.
It was nike free insiders said: Although the last May, Tencent, Nike announced a 50 million-dollar investment, but because of the cost, so the money was unable to save the Nike. That Nike will cut 30% in April this year the outgoing message, brand marketing, financial sector, research and development departments will be revoked, in order to further cut costs, Nike will also relocate collective withdrawal from Beijing to Tianjin.
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