twin58
02-06-2008, 09:47 PM
Nike learns that money can't buy happiness, or at least an acceptable share of the hockey equipment market. And this is apropos because...? Because there are surely lessons in this for companies eyeing the lacrosse equipment market in light of the growth of the sport.
If you're worried about registering with the NYT, they've never spammed me.
With Hockey Market Stagnant, Nike Seeks to Sell Equipment Unit (http://www.nytimes.com/2008/02/05/business/worldbusiness/05nike.html)
By IAN AUSTEN
Published: February 5, 2008
OTTAWA — It was just a little swoosh. But when Nike added its logo to gear by Bauer, a longtime Canadian maker of hockey equipment, “there was resistance,” said Terry Bovair, owner of the Fontaine Source for Sports in Peterborough, Ontario. “Some people did not buy the product.”
....
Thirteen years after acquiring Bauer, and making bold promises that it would transform the business of hockey, Nike has put its Nike Bauer unit up for sale, a rare bit of comeuppance for one of the world’s powerful brands.
....
But Nike’s decision to step away from hockey at the same time it is increasing its presence in soccer shows that financial muscle and marketing power do not always give it the ability to dominate the field, or the ice.
“Nike has been a good competitor,” said Denis Drolet, president of Groupe Drolet, which owns Sher-Wood, a hockey-stick maker in Sherbrooke, Quebec. “Bauer is a great name, they have a great line of skates. But the hockey market is not growing.”
....
Critics also say that Nike’s attention to product design did not extend to the performance of the skates, which were priced at a premium of several hundred dollars, and were unusually sized for North American feet.
“Their high-end skate was cutting people’s heels and causing blisters,” said Mr. Bovair, a former professional player. “It was a bad, bad launch.”
....
With their emphasis on exotic materials, Nike Bauer and Easton succeeded in raising prices for hockey equipment. While $400 had once seemed the limit for skates, Nike Bauer managed to find a market for $750 pairs by using lightweight, high-performance material.
....
Indeed, some analysts look toward a decline in equipment sales. Player registrations for USA Hockey, the governing body, rose last season by 3.3 percent over the previous period. But the increase was largely caused by previously unregistered adult players who joined for insurance reasons. Youth memberships, the indicator of the sport’s future, fell 0.5 percent.
And so forth. I thought the part about a breakdown of registrations for USA Hockey by age group was interesting.
What's in it for you? I would not be surprised to see a fire sale of Nike Bauer equipment in the next few months.
If you're worried about registering with the NYT, they've never spammed me.
With Hockey Market Stagnant, Nike Seeks to Sell Equipment Unit (http://www.nytimes.com/2008/02/05/business/worldbusiness/05nike.html)
By IAN AUSTEN
Published: February 5, 2008
OTTAWA — It was just a little swoosh. But when Nike added its logo to gear by Bauer, a longtime Canadian maker of hockey equipment, “there was resistance,” said Terry Bovair, owner of the Fontaine Source for Sports in Peterborough, Ontario. “Some people did not buy the product.”
....
Thirteen years after acquiring Bauer, and making bold promises that it would transform the business of hockey, Nike has put its Nike Bauer unit up for sale, a rare bit of comeuppance for one of the world’s powerful brands.
....
But Nike’s decision to step away from hockey at the same time it is increasing its presence in soccer shows that financial muscle and marketing power do not always give it the ability to dominate the field, or the ice.
“Nike has been a good competitor,” said Denis Drolet, president of Groupe Drolet, which owns Sher-Wood, a hockey-stick maker in Sherbrooke, Quebec. “Bauer is a great name, they have a great line of skates. But the hockey market is not growing.”
....
Critics also say that Nike’s attention to product design did not extend to the performance of the skates, which were priced at a premium of several hundred dollars, and were unusually sized for North American feet.
“Their high-end skate was cutting people’s heels and causing blisters,” said Mr. Bovair, a former professional player. “It was a bad, bad launch.”
....
With their emphasis on exotic materials, Nike Bauer and Easton succeeded in raising prices for hockey equipment. While $400 had once seemed the limit for skates, Nike Bauer managed to find a market for $750 pairs by using lightweight, high-performance material.
....
Indeed, some analysts look toward a decline in equipment sales. Player registrations for USA Hockey, the governing body, rose last season by 3.3 percent over the previous period. But the increase was largely caused by previously unregistered adult players who joined for insurance reasons. Youth memberships, the indicator of the sport’s future, fell 0.5 percent.
And so forth. I thought the part about a breakdown of registrations for USA Hockey by age group was interesting.
What's in it for you? I would not be surprised to see a fire sale of Nike Bauer equipment in the next few months.