"investor - customers" directly and then continuing to sell B2C instead of starting with distribution
channels.
Consumers often like the direct model too. Disappointments encountered in retail shopping, where
limited inventory may mean the right size, color, or quantity is out of stock, are almost never a problem
when shopping directly with the manufacturer, where inventory is largest and the ability to make more
quickly is right at hand. Likewise, consumers are often pleased when they get to interact directly with a
brand by providing input into product design or sharing feedback on their experience with the product.
Manufacturers are also perceived as being the truest experts on the product, and a better place to get
advice or help. Such interactions can lead to improved brand loyalty.
Manufacturers are recognizing this disruption in the marketplace, so much so that Unilever, one of the
world's largest consumer goods conglomerates, recently paid $1 billion for the Dollar Shave Club. And
the reason? Not the excellent e - commerce site operated by Dollar Shave Club, but the firm's ability to
build a relationship directly with consumers. For manufacturers, the opportunity to own the relationship
with the customer, and to be able to define their own brand without intermediaries, is an attractive
reason to go direct. And for Nike, one of the world's top 20 most valuable brands, owning the
relationship as trends move toward B2C will be important.
Questions for Consideration
As Nike and other manufacturers continue to expand into B2C channels, what are some differences in
B2C and B2B behavior that might affect Nike's approach to these channels?