Latest / Black Box Theory Podcast / What's Actually Wrong With Nike Right Now
Transcript
- Malcolm: Nike has priced itself out of being consumer friendly. Like you cannot get a pair of dry, dry fit tech pants for less than like $90 now, bro. No, bro. It's like I Thomas: Yeah, Malcolm: think a combination of that, the combination of the pricing, the lack of like creativity and ingenuity from like af our like the biggest athlete names on like the shoes, like everything looks the same now, right? They're i it's crazy pricing. There's no creativity anymore. and they're Thomas: But yeah. Malcolm: just not the brand that like I think everyone grew to love anymore. yeah, man. De definitely wanted to to to to to get to get your feedback on this one though. Thomas: Man, I think I think they should pick up Tim Cook as a as a maybe a creative mind on the business side, on the you know, operations wise. Tim Cook, I mean, a lot of people think about Apple's recent kind of I don't want to say drop drop decisions. Apple definitely has not been failing. They've actually been making a comeback recently, even you know, even if you think they're running out of ideas. But You know, I think he could do some help over there, some good at at at Nike. Also, I think Malcolm: Are you talking about some you talking some cook? Thomas: Yeah, yeah. Tim Cook from from Apple. Malcolm: You n you know he's still the he's still the executive chairman of Apple for the next two years. He getting paid like he's getting paid like he gets like forty five million dollars in stock every year. Thomas: I mean he look, he could sta he could stay I'm not saying like he gotta go to Nike now. I just think like someone like him might help Nike out. I mean, I think their CEO at Nike just came into power not too long ago anyway. Or like five years ago, something like that. Malcolm: Yeah, he yeah, he bit yeah he was like a he started out like as like an intern. He'd been there for like t like a long time. But like you know. Thomas: Yeah, I'm not saying that he needed to be replaced. I'm not saying replace the Nike CEO. I feel like maybe he inherited something that was already kind of, you know, cooked. But it's like, Malcolm: yeah, he died yeah, Nike was already dying. I mean not not dy Yeah. Thomas: but you gotta look at stuff like Alo. Like Aloe's taxing out the out the wazoo for basic sweats. Like, well Lulu's cooked. Malcolm: Yeah. Aloe, Lululemon, UniClo, you know, all all these like there there's no like I mean that's a thing though, like that's a that's a Thomas: But like Nike. Malcolm: go ahead. Thomas: it's just like but the these other brands, like, okay, I don't want to say Lulu's cooked, but I their stock hasn't been doing that great. But Malcolm: Mm-hmm. Thomas: when you people are still buying, like the hunger to spend exorbitant amounts of money is there. I just think with Nike, they should try to since there are these other brands that people are leaning towards, maybe Nike should bite the bullet on a profit margin a little bit. Because I know they're they're selling these these Nike dry fit stuff for ninety dollars, let's say ninety dollar pants. Brother, you're making that for like, you know, a a a few cents, a couple, couple Malcolm: Two two dollars. Mm-hmm. Thomas: bucks, and you add in shipping and handling and you know, paying the distributors, you're probably it probably costs you twenty, Malcolm: Not. Thomas: thirty dollars to make and get them to where you need to be, right? Not including fuel and all that other stuff. But it's like you you could cut it down a little bit. You know, you guys always end up having excess stuff that goes to the outlets and All that maybe, maybe control the resale market a little bit, maybe stop making it so these resellers are are destroying the prices and people can get them cheaper on the street than Malcolm: Mm-hmm. Thomas: off you. You know, just balance that out. But I I think in terms of Nike, the allure is just it's still there, but they got it, they gotta get it back. But it also is tied into bigger cultural things such as the NBA, NFL. you think about back in the day, NBA, Nike athletes in the way that The game was played was different. You saw Malcolm: Mm-hmm. Thomas: LeBron playing in in his Nikes, saw him doing the crazy stuff you wanted him. Now, you know, I'm no disrespect to Jason Tatum. I I'm not seeing Jason Tatum doing anything that says, like, hey, I want to get Jason Tatum shoes. John Morant has been kind of out the picture for a little bit. Hopefully he comes back healthy this year.