Nike's lack of support for the Canadian Market

[Bad Religion]

Originally Posted by nkwu11

Since "Nike North America" didn't quite happen, what was the compromise..... if there ever was one?

Calgary got a Nike Head Office, which was supposed to increase sales in the west while alleviating some of the stress on the call center and Eastern Canada office. It really hasnt done anything more than offer a place for the reps to show product to vendors. Nike has been really pushing a 5th purchasing quarter (basically having Spring, Summer, Fall, Winter, and Holiday) and really pushing the training and minimalist running segments, so showings happen alot more frequently then in the past. 
There is still some talk of a couple minor changes, but we'll see.
There are several reasons Nike has not dropped their retails as low as a few of you would like. I'll try and give some insight without getting in trouble. 

The dude that said tariffs would be on the right track, if Nike didnt have a Canadian office. You can get really dinged on those, but the NAFTA and having a Canadian base of operations, they are no where near as vital to pricing as you believe. the number one reason they are still so high is shipping. Nike Canada does about 10-15% of the business the US does in an area that is much larger than the Continental US. Vendors cover a portion depending on their policy agreements, but Nike usually foots the bill, especially on booked product.

Keep in mind, the Canadian dollar is over par right now.... but if you remember 4 years ago, it was in a similar position before dropping off. A bunch of companies (Oakley and Nike specifically) reacted to the great exchange by slashing their Spring MSRP that year and ended up getting killed when the Canadian dollar dropped off later that year. They have to be hesitant to try it again.

And look at the industry in Canada.... running is the highest selling segment for the big three in Canada (Nike, New Balance, Asics). All three have really dialed the pricing to compete with one another, while maximizing sales. Basically, they have found a great point where they can experience growth, while maximizing revenue. 

To be honest, I remember paying well over $200 for J's in the late 90's. The pricing we are seeing now is pretty reasonable, IMO.

 

[Bad Religion]

Originally Posted by nkwu11

Since "Nike North America" didn't quite happen, what was the compromise..... if there ever was one?

Calgary got a Nike Head Office, which was supposed to increase sales in the west while alleviating some of the stress on the call center and Eastern Canada office. It really hasnt done anything more than offer a place for the reps to show product to vendors. Nike has been really pushing a 5th purchasing quarter (basically having Spring, Summer, Fall, Winter, and Holiday) and really pushing the training and minimalist running segments, so showings happen alot more frequently then in the past. 
There is still some talk of a couple minor changes, but we'll see.
There are several reasons Nike has not dropped their retails as low as a few of you would like. I'll try and give some insight without getting in trouble. 

The dude that said tariffs would be on the right track, if Nike didnt have a Canadian office. You can get really dinged on those, but the NAFTA and having a Canadian base of operations, they are no where near as vital to pricing as you believe. the number one reason they are still so high is shipping. Nike Canada does about 10-15% of the business the US does in an area that is much larger than the Continental US. Vendors cover a portion depending on their policy agreements, but Nike usually foots the bill, especially on booked product.

Keep in mind, the Canadian dollar is over par right now.... but if you remember 4 years ago, it was in a similar position before dropping off. A bunch of companies (Oakley and Nike specifically) reacted to the great exchange by slashing their Spring MSRP that year and ended up getting killed when the Canadian dollar dropped off later that year. They have to be hesitant to try it again.

And look at the industry in Canada.... running is the highest selling segment for the big three in Canada (Nike, New Balance, Asics). All three have really dialed the pricing to compete with one another, while maximizing sales. Basically, they have found a great point where they can experience growth, while maximizing revenue. 

To be honest, I remember paying well over $200 for J's in the late 90's. The pricing we are seeing now is pretty reasonable, IMO.

 

[dro3000]

Originally Posted by empirestrikesfirst

Originally Posted by nkwu11

Since "Nike North America" didn't quite happen, what was the compromise..... if there ever was one?

Calgary got a Nike Head Office, which was supposed to increase sales in the west while alleviating some of the stress on the call center and Eastern Canada office. It really hasnt done anything more than offer a place for the reps to show product to vendors. Nike has been really pushing a 5th purchasing quarter (basically having Spring, Summer, Fall, Winter, and Holiday) and really pushing the training and minimalist running segments, so showings happen alot more frequently then in the past. 
There is still some talk of a couple minor changes, but we'll see.
There are several reasons Nike has not dropped their retails as low as a few of you would like. I'll try and give some insight without getting in trouble. 

The dude that said tariffs would be on the right track, if Nike didnt have a Canadian office. You can get really dinged on those, but the NAFTA and having a Canadian base of operations, they are no where near as vital to pricing as you believe. the number one reason they are still so high is shipping. Nike Canada does about 10-15% of the business the US does in an area that is much larger than the Continental US. Vendors cover a portion depending on their policy agreements, but Nike usually foots the bill, especially on booked product.

Keep in mind, the Canadian dollar is over par right now.... but if you remember 4 years ago, it was in a similar position before dropping off. A bunch of companies (Oakley and Nike specifically) reacted to the great exchange by slashing their Spring MSRP that year and ended up getting killed when the Canadian dollar dropped off later that year. They have to be hesitant to try it again.

And look at the industry in Canada.... running is the highest selling segment for the big three in Canada (Nike, New Balance, Asics). All three have really dialed the pricing to compete with one another, while maximizing sales. Basically, they have found a great point where they can experience growth, while maximizing revenue. 

To be honest, I remember paying well over $200 for J's in the late 90's. The pricing we are seeing now is pretty reasonable, IMO.

Thank you for the insight!!! Really appreciate the post and as far as pricing I completely agree with you there.  I remember some J's retailing for $249.99-$299.99 in the 90's.  My complaint is based on the comparison to American pricing but youve shed some light and as a sales mgr at a car dealership we are faced with similar questions regarding our MSRP's vs the US.  Luckily in our market manufacturers can provide rebates in realtime that help bring pricing down.  I guess if Nike really wanted to they could provide rebates to their retailers who could pass on a portion of the savings to us, the end users.  Can you shed some light on what differentiates one shoe being released here vs another similar shoe.  For example, the Jordan 2011 YOTR did not release in Canada at all (correct me if Im wrong), but the Jordan VII YOTR did release at multiple retailers in Vancouver and Toronto as far as I know.

BTW you mentioned the "big 3" here in Canada and named off Nike, NB, and ASICS?!?!?!  Asics???  I would have put Adidas ahead them

 

[dro3000]

Originally Posted by empirestrikesfirst

Originally Posted by nkwu11

Since "Nike North America" didn't quite happen, what was the compromise..... if there ever was one?

Calgary got a Nike Head Office, which was supposed to increase sales in the west while alleviating some of the stress on the call center and Eastern Canada office. It really hasnt done anything more than offer a place for the reps to show product to vendors. Nike has been really pushing a 5th purchasing quarter (basically having Spring, Summer, Fall, Winter, and Holiday) and really pushing the training and minimalist running segments, so showings happen alot more frequently then in the past. 
There is still some talk of a couple minor changes, but we'll see.
There are several reasons Nike has not dropped their retails as low as a few of you would like. I'll try and give some insight without getting in trouble. 

The dude that said tariffs would be on the right track, if Nike didnt have a Canadian office. You can get really dinged on those, but the NAFTA and having a Canadian base of operations, they are no where near as vital to pricing as you believe. the number one reason they are still so high is shipping. Nike Canada does about 10-15% of the business the US does in an area that is much larger than the Continental US. Vendors cover a portion depending on their policy agreements, but Nike usually foots the bill, especially on booked product.

Keep in mind, the Canadian dollar is over par right now.... but if you remember 4 years ago, it was in a similar position before dropping off. A bunch of companies (Oakley and Nike specifically) reacted to the great exchange by slashing their Spring MSRP that year and ended up getting killed when the Canadian dollar dropped off later that year. They have to be hesitant to try it again.

And look at the industry in Canada.... running is the highest selling segment for the big three in Canada (Nike, New Balance, Asics). All three have really dialed the pricing to compete with one another, while maximizing sales. Basically, they have found a great point where they can experience growth, while maximizing revenue. 

To be honest, I remember paying well over $200 for J's in the late 90's. The pricing we are seeing now is pretty reasonable, IMO.

Thank you for the insight!!! Really appreciate the post and as far as pricing I completely agree with you there.  I remember some J's retailing for $249.99-$299.99 in the 90's.  My complaint is based on the comparison to American pricing but youve shed some light and as a sales mgr at a car dealership we are faced with similar questions regarding our MSRP's vs the US.  Luckily in our market manufacturers can provide rebates in realtime that help bring pricing down.  I guess if Nike really wanted to they could provide rebates to their retailers who could pass on a portion of the savings to us, the end users.  Can you shed some light on what differentiates one shoe being released here vs another similar shoe.  For example, the Jordan 2011 YOTR did not release in Canada at all (correct me if Im wrong), but the Jordan VII YOTR did release at multiple retailers in Vancouver and Toronto as far as I know.

BTW you mentioned the "big 3" here in Canada and named off Nike, NB, and ASICS?!?!?!  Asics???  I would have put Adidas ahead them

 

[Bad Religion]

There is a misconception that Nike doesn't offer certain releases in Canada. While this is the case occasionally, it almost exclusively falls on vendors. If Nike isn't seeing interest from vendors, then they aren't going to bring in a shoe when they dont believe it will get picked up or meet it's minimum buy. Most shoes (not all, but a large percentage) COULD be sold here, they just arent picked up. That said, alot of colorways dont make it north of the border.Quikstrikes/Hyperstrikes/Limited Releases are more difficult for Nike to release for 2 reasons. One, with our population, it doesnt make sense for a limited run that is lower than 1000 worldwide to make an appearance here. Two, they dont have time enough to present them at shows, let alone catalogues (which are almost useless at this point). You can email vendors to gauge popularity, but that is still iffy.
Obviously Adidas is a bigger company, but in Canada, Adidas is a shadow of anywhere else in the world. They rely on two things in footwear up here. Soccer cleats, and pricepoint running shoes. Basketball availability is laughable, they haven't released a mid to high end runner in years worth mentioning. It's only recently they have dipped their toes in the minimalism craze happening right now. Adidas might win out in sheer volume, but in no way are they competitors north of the border in the running segment.

This is just my opinion, I do not have actual number from either company on a national wide scale, so take it with a grain of salt.

 

[Bad Religion]

There is a misconception that Nike doesn't offer certain releases in Canada. While this is the case occasionally, it almost exclusively falls on vendors. If Nike isn't seeing interest from vendors, then they aren't going to bring in a shoe when they dont believe it will get picked up or meet it's minimum buy. Most shoes (not all, but a large percentage) COULD be sold here, they just arent picked up. That said, alot of colorways dont make it north of the border.Quikstrikes/Hyperstrikes/Limited Releases are more difficult for Nike to release for 2 reasons. One, with our population, it doesnt make sense for a limited run that is lower than 1000 worldwide to make an appearance here. Two, they dont have time enough to present them at shows, let alone catalogues (which are almost useless at this point). You can email vendors to gauge popularity, but that is still iffy.
Obviously Adidas is a bigger company, but in Canada, Adidas is a shadow of anywhere else in the world. They rely on two things in footwear up here. Soccer cleats, and pricepoint running shoes. Basketball availability is laughable, they haven't released a mid to high end runner in years worth mentioning. It's only recently they have dipped their toes in the minimalism craze happening right now. Adidas might win out in sheer volume, but in no way are they competitors north of the border in the running segment.

This is just my opinion, I do not have actual number from either company on a national wide scale, so take it with a grain of salt.

 

[severn]

I tend to go to at least 1-2 champs/footlockers a week + winners and or livestock quite frequently just to browse and I constantly find that it's more the shops than Nike that won't get releases.

Several of the champs/footlockers here do get really good stuff, but depending on their market they carry seems like nothing but low end kicks and Shoxs.... ugh.....
They could get other stuff, but they're unwilling to do so because they think it doesn't sell, and you know what, they don't. Canada doesn't have that big of a market. From a business point of view it makes no sense.

We're stuck really unless you can find a good shop that will order for you or has an account that can get good stuff.

The Tariffs don't help. They prompt my trips to Seattle or Vegas to check stuff out and get a better price.

What does bother me is the fact that we can't order online and we're like the only 1st world Nation that CAN'T

We also can't order through NikeID. That pisses me off too.

I don't care about the pricing as it would probably be about the same as for buying up here, but dammit we should be able to order through their site online.

 

[severn]

I tend to go to at least 1-2 champs/footlockers a week + winners and or livestock quite frequently just to browse and I constantly find that it's more the shops than Nike that won't get releases.

Several of the champs/footlockers here do get really good stuff, but depending on their market they carry seems like nothing but low end kicks and Shoxs.... ugh.....
They could get other stuff, but they're unwilling to do so because they think it doesn't sell, and you know what, they don't. Canada doesn't have that big of a market. From a business point of view it makes no sense.

We're stuck really unless you can find a good shop that will order for you or has an account that can get good stuff.

The Tariffs don't help. They prompt my trips to Seattle or Vegas to check stuff out and get a better price.

What does bother me is the fact that we can't order online and we're like the only 1st world Nation that CAN'T

We also can't order through NikeID. That pisses me off too.

I don't care about the pricing as it would probably be about the same as for buying up here, but dammit we should be able to order through their site online.

 

[dro3000]

Great info guys!!!

Regarding the shoes we left out on releases, I have a very good relationship with my foot locker and they get most Jordan releases and QS releases but they never really have the opportunity to choose what they can sell. Half the time they dont know what theyre getting until about a month prior to release.

In the end I understand its simply supply and demand. We have the demand that a single state in the United States does. Luckily, it seems as if sneaker culture is growing here in Canada and hopefully it will bring demand up.

 

[dro3000]

Great info guys!!!

Regarding the shoes we left out on releases, I have a very good relationship with my foot locker and they get most Jordan releases and QS releases but they never really have the opportunity to choose what they can sell. Half the time they dont know what theyre getting until about a month prior to release.

In the end I understand its simply supply and demand. We have the demand that a single state in the United States does. Luckily, it seems as if sneaker culture is growing here in Canada and hopefully it will bring demand up.

 

[Bad Religion]

You also should remember that Footlocker is a corporate vendor, so some decisions come from their head offices on what to carry and what not to.
Franchisees and independents have alot more lee-way in what they can get, however, usually don't get the SMU's that Footlocker and Champs can pull in.

 

[Bad Religion]

You also should remember that Footlocker is a corporate vendor, so some decisions come from their head offices on what to carry and what not to.
Franchisees and independents have alot more lee-way in what they can get, however, usually don't get the SMU's that Footlocker and Champs can pull in.

 

[chrischen]

I was talking to the Adidas Originals rep for this region and he told me that Canada only gets about 1/10th of the product of the states, just due to the size of the demand and the quantity of stores. So I can only imagine Nike is in the same boat. Stores like the Nike Store and Footlocker can sell lunars and frees all day, because everyone buys them, but the cool stuff isn't very lucrative.

 

[chrischen]

I was talking to the Adidas Originals rep for this region and he told me that Canada only gets about 1/10th of the product of the states, just due to the size of the demand and the quantity of stores. So I can only imagine Nike is in the same boat. Stores like the Nike Store and Footlocker can sell lunars and frees all day, because everyone buys them, but the cool stuff isn't very lucrative.

 

[Bad Religion]

Originally Posted by chrischen

I was talking to the Adidas Originals rep for this region and he told me that Canada only gets about 1/10th of the product of the states, just due to the size of the demand and the quantity of stores. So I can only imagine Nike is in the same boat. Stores like the Nike Store and Footlocker can sell lunars and frees all day, because everyone buys them, but the cool stuff isn't very lucrative.

He's talking about Adidas. Their availability in Canada is pathetic.

 

[Bad Religion]

Originally Posted by chrischen

I was talking to the Adidas Originals rep for this region and he told me that Canada only gets about 1/10th of the product of the states, just due to the size of the demand and the quantity of stores. So I can only imagine Nike is in the same boat. Stores like the Nike Store and Footlocker can sell lunars and frees all day, because everyone buys them, but the cool stuff isn't very lucrative.

He's talking about Adidas. Their availability in Canada is pathetic.

 

[gp9rm4108]

The availability here in Winnipeg is pretty good. The big Foot Locker here is supposedly one of 6 in Canada that gets the good stuff Nike sends to Canada ... and I am always there making sure I get them. The Champs here gets all the good stuff Nike sends to them in Canada too ... so I am always there as well.

But yes, there is SO much more I would like to get. I seem to have to range between size 10, 10.5 and 11 for Nike's depending on the models so it's too high of a risk to order from the States if I don't know how that model fits my foot.

Saves money, but it's certainly annoying.

 

[gp9rm4108]

The availability here in Winnipeg is pretty good. The big Foot Locker here is supposedly one of 6 in Canada that gets the good stuff Nike sends to Canada ... and I am always there making sure I get them. The Champs here gets all the good stuff Nike sends to them in Canada too ... so I am always there as well.

But yes, there is SO much more I would like to get. I seem to have to range between size 10, 10.5 and 11 for Nike's depending on the models so it's too high of a risk to order from the States if I don't know how that model fits my foot.

Saves money, but it's certainly annoying.

 

[gp9rm4108]

Originally Posted by empirestrikesfirst

 

He's talking about Adidas. Their availability in Canada is pathetic.


  

We have an Adidas outlet store here in Winnipeg. It's pathetic that Foot Locker and Champs have a selection that's 100x better than their own store and it still sucks.

 

[gp9rm4108]

Originally Posted by empirestrikesfirst

 

He's talking about Adidas. Their availability in Canada is pathetic.


  

We have an Adidas outlet store here in Winnipeg. It's pathetic that Foot Locker and Champs have a selection that's 100x better than their own store and it still sucks.

 

[sircharles]

I am in the States now and I now realized how hard it was being a shoe head in Canada. So much easier when you live here.

 

[sircharles]

I am in the States now and I now realized how hard it was being a shoe head in Canada. So much easier when you live here.

 

[raptornation]

Originally Posted by SirCharles

I am in the States now and I now realized how hard it was being a shoe head in Canada. So much easier when you live here.

Lucky guy!
So.............lakers home cw of the Kobe VI..............I have Paypal!
Joking

lol.

 

[raptornation]

Originally Posted by SirCharles

I am in the States now and I now realized how hard it was being a shoe head in Canada. So much easier when you live here.

Lucky guy!
So.............lakers home cw of the Kobe VI..............I have Paypal!
Joking

lol.

 

[clayface]

GP9Rm4108 wrote:

We have an Adidas outlet store here in Winnipeg. It's pathetic that Foot Locker and Champs have a selection that's 100x better than their own store and it still sucks.

Even the adidas outlet doesn't have much... if you're lucky there might be a decent pair of ball shoes. 
But yeah the price on Jordans is ridiculous up here. $189 or $199 retail. Meanwhile the states is $159 *%%. I only work at foot locker to get discounts on jordans and its basically just the US price lol