Nike looks to combat the selling of fake sneakers.
In an effort to stop the distribution of fake sneakers on the internet, Nike has partnered with Amazon so that the company can begin selling their sneakers and other products directly on the e-commerce giant's website.
As of now, it's unclear just how much more Nike merch will ultimately be sold via Amazon, but the deal is expected to dramatically impact the counterfeit sneaker market.
According to Bloomberg,
"The approach lets Nike Inc. take greater control over how its products are sold, helping ensure that knockoff shoes aren’t offered by third parties on the e-commerce marketplace, said the person, who asked not to be named because the arrangement isn’t yet public."
While this new partnership is a great way for Nike to ensure that their customers get authentic products, it will damage their retail partners like Foot Locker and Finish Line. The stocks of boths companies have already dropped in wake of today's news.
For instance, Bloomberg reports that Foot Locker Inc. plunged as much as 11%, while Finish Line Inc. and Dick's Sports Goods Inc. fell 5.9%, and more than 9%, respectively.
Amazon has been able to lure brands by promising to get rid of fakes sold by their marketplace sellers.— Darren Rovell (@darrenrovell) June 21, 2017
Strange strategy that has worked.