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Nike's Big Miss: Run Clubs
Nike admits to underinvesting in the road-running scene at a time when run clubs are growing in popularity.
Kieran Ryan
July 03, 2024
Good morning, Nerders. It’s Thursday, July 4th. In today’s newsletter (3-minute read), we cover:
How Nike missed on the run club trend
Spotify’s payout model
A look at why China is winning the auto market race
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TODAY’S STORY
Run clubs have been around for two decades, but they are finally starting to appeal to the casual runner.
Young singles are joining running clubs to find dates and make new friends.
Some run clubs have doubled or even tripled in size in the past year.
New Balance, Hoka, and Asics have field reps worldwide who regularly show up at run club events to let runners try new sneakers, give out free merchandise, and pay for drinks after the workout. On Running takes a similar approach but also started its own run clubs.
Surprisingly absent from most of the scene: Nike.
Nike used to have a stranglehold on the avid running scene but, in recent years has shifted its focus and investment to other areas of the business like increasing automation to streamline operations.
In an April interview, Nike Chief Executive John Donahoe admitted they underinvested in the road-running scene. Nike is missing the boom in running culture at a time when it forecasts 1% revenue growth for fiscal year 2024, and its stock is down more than 10% year-to-date.
The significant misstep could allow emerging shoe brands like Hoka and On to continue taking market share away from the sneaker giant.
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DATA BYTES
How much are artists making on Spotify?
Several artists have gone viral for complaining about Spotify’s broken payout model. While the model is far from perfect, it’s improving for independent artists.
Spotify paid out $9 billion in music royalties in 2023, of which $4.5 billion went to independent artists.
Taylor Swift, Spotify’s top-streamed artist of 2023, earned over $100 million on the platform.
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#SHORTS
China & The Auto Market Race
@boringbusinesskieran China & the auto market race 🚗 #business #auto #cars #china #foryou
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PREVIOUS STORIES
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Hotel brands like Marriott, Hilton, and Hyatt own less than 2% of their hotels.
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To read the web version of previous stories, click here
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Thanks for reading,
Kieran & Justin Ryan
