At $60 million round C financing cheap nike free run announced that it will, after more than 80 per cent of the funds used for logistics warehouse building. October 15, 2011, Nike officially start the self-built logistics, in the north, such as a wide city line of distribution, in 2012 and plans to extend it to more than 30 cities. Further, the construction product inventory storage entities, since building logistics has Nike completely funding constraints, profitability, and nosedive to a loss.
The return rate high nike free run 2 are caused by deteriorating business conditions, due to excessive mimic Zappos " 3 pair of shoes." policy increased the return rate, linear increase in the 3 pair of shoes" policy is that consumers can be ordered on the web at 3 pairs of shoes, and walk-up, the consumer can also double-double of the shoes are not satisfied with the return, Nike modeled after the "two shoes" policy,http://www.nikefreerunx2012.com/ the customer experience as well as the need to raise the additional funds and inventory risk is also increased because there is double the Nike channel, and freight increased by 75 per cent, more than the shoes on the way to and from, and also reduce the sales opportunities.
According to internal nike free run said: Although Nike announced in May last year was $50 million off of an investment, but because of the cost, so the money to rescue Nike. In April this year, the outgoing message of Nike will cut 30 per cent, brand marketing, finance, R&D department will be abolished, in order to further cost savings, Nike collective retreat from Beijing will be moved to Tianjin.
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