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American sportswear giant Nike will partner more closely with one of Europe’s largest online fashion retailers, Zalando, from October onward.
The two businesses have already worked together for nearly a decade, but this new version of the Nike-Zalando partnership will mean, firstly, that consumers in 10 European countries who already have a Nike account will be able to link it to the Zalando site.
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There, they will be able to access a wider selection of products only available to Nike members on the more wide-ranging fashion platform. Zalando customers will also be able to create a Nike account if they wish to access what Zalando is calling the “member-gated assortment.”
The partnership will begin in Austria in mid-October, then be rolled out to customers in Germany, the Netherlands, France, Belgium, Denmark, Sweden, Finland, Italy and Poland.
“The logistics will be facilitated by Nike as they are part of our partner program,” said Sara Diez, Zalando vice president for womenswear, explaining further how the relationship will work. “Partners take over logistics and warehousing themselves, unless they [already] use our fulfillment services.”
A statement released by both companies says their “long-term partnership reflects a mutual passion for innovation and provides a pioneering customer experience.”
“We are thrilled to now take this partnership to the next level by offering our customers exclusive benefits,” Zalando-co-chief executive officer David Schneider added.
But beyond the corporate congratulations, what’s really in it for all those involved? A look at a similar partnership with U.S. retailer, Dick’s Sporting Goods, that Nike announced last November offers some clues.
Both that partnership and this European one are just the latest in Nike’s ongoing plan to be more selective about its stockists and to expand direct-to-consumer sales via e-commerce.
The sportswear giant’s plan, aptly named the Consumer Direct Offense, was announced in 2017, and over the past five years Nike has become far fussier about where its products are sold and by whom.
Nike has deprived thousands of brick-and-mortar retailers, including department stores, of its wares. During an earnings call in March this year, executives said the brand had cut more than half its stockists over the past four years. It has also opened more doors of its own, with many offering unique customer experiences to showcase the brand.
In 2019, the company also stopped selling via Amazon, ditching a two-year-old pilot program that was supposed to allow Amazon to sell a limited Nike assortment on the global platform, in exchange for stricter control of the Nike brand.