Every Business Must Adapt to Increase Revenue: How Nike Partners With Skims to Save Their Brand

What SMBs Can Learn from Nike's Collaboration with Skims

When a brand as iconic as Nike experiences declining sales, it's a stark reminder that no business—big or small—is immune to market shifts. This week, Nike announced a strategic partnership with Skims, Kim Kardashian's shapewear brand, to regain momentum. This collaboration aims to disrupt the fitness space by combining Skim's revolutionary technology and success in shapewear with Nike's fitness heritage. This partnership is one of Nike's efforts to increase sales and obtain a new customer base.

The Reality: Big and Small Businesses Face the Same Challenges

While Nike operates globally, their struggles are not unlike those of small and medium-sized businesses (SMBs). Declining revenue, changing consumer preferences, and fierce competition are challenges that any business owner can relate to. Whether you’re running a retail shop, an e-commerce brand, or a service-based business, adapting and innovating is crucial to long-term success.

Here are the key insights SMBs can take away from Nike’s latest move:

1. Consumer Behavior Drives Business Success

   1. Nike's declining sales were partly due to changing consumer behaviors, with competitors like On and Hoka gaining market share. What has changed in consumer behavior is the value placed on brands that align closely with their values, lifestyles, and identities.

      Insights for SMBs: Regularly assess what your customers truly want. The easiest way to do this is by conducting surveys, analyzing purchasing patterns, and engaging directly with your audience on social media. This is one of the biggest problems we see with businesses; they neglect to understand their current customer more.

      
      

2. Strategic Partnerships Can Revive and Expand a Brand

   1. Rather than trying to solve the issue alone, Nike aligned itself with Skims, a brand with strong customer loyalty and market appeal. This collaboration allows Nike to tap into a new customer base that values performance and inclusivity.  

      Insights for SMBs: You don't have to go at it alone, but most businesses do it alone. Partnering with complementary businesses, influencers, or service providers can help you tap into a broader audience and refresh your brand. Share your values but serve a different part of the audience segment.

      
      

3. Innovation is Key to Staying Competitive

   1. Nike has long been an innovator in sports apparel, but even industry leaders must evolve. The Skims partnership represents a pivot toward a more inclusive and lifestyle-oriented approach to sportswear.

      Insights for SMBs:  Most businesses see innovation as creating a new brand product. However, innovation can take place internally and externally. You can innovate by redefining what you offer and the processes to improve your audience. In a constantly changing environment, now more than ever, with the introduction of emerging technologies, you must consider tweaking your services, rebranding, or even exploring new revenue streams to keep your business ahead of the curve.

      
      

4. Marketing Needs to Be Customer-Centric

   1. Nike understands that brand messaging matters. With Skims' influence, their campaign will likely focus on body inclusivity, empowerment, and modern femininity—narratives that deeply resonate with today's consumers.

      Insights for SMBs: How you present your brand should align with your customers' values. Use storytelling, social proof, and targeted messaging to create deeper emotional connections with your audience. Your marketing should be genuine to your brand values, authentic, and should try to make a connection.

      
      

5. Digital Presence and E-commerce Are Must

   1. One of the biggest drivers of this partnership's success was Nike's struggles, including a 21% drop in digital sales. Despite being a giant in the industry, Nike must refine its online strategy to engage customers better.

      Insights for SMBs: If you are a small business owner with no digital presence, you must start today to have one. Optimize your website for sales, engage in social media marketing, and invest in digital advertising to capture your audience where they spend the most time.

      
      

Final Thoughts: Every Business Must Adapt to Increase Revenue

Whether you're a giant with lots of market share or a small to medium-sized business operating with a team of 100, Nike's partnership with Skims shows that even the most prominent brands must evolve. Whether you're a local business or an emerging startup, the ability to pivot, embrace partnerships, and stay attuned to consumer needs will define your success.

At Into The Next, we specialize in helping businesses navigate and adapt to change, refine business strategies, align business and financial outcomes, and build long-term value. If you're ready to future-proof your business, let's discuss your next move!