TikTok Crypto Influencers Are Teaching A New Generation of Investors
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,603,134 (+0.55%)       elbourne $989,193 (-0.36%)       Brisbane $963,516 (+0.83%)       Adelaide $873,972 (+1.09%)       Perth $833,820 (+0.12%)       Hobart $754,479 (+3.18%)       Darwin $668,319 (-0.54%)       Canberra $993,398 (-1.72%)       National $1,033,710 (+0.29%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $748,302 (+0.18%)       Melbourne $497,833 (-0.44%)       Brisbane $540,964 (-1.56%)       Adelaide $441,967 (-0.38%)       Perth $442,262 (+1.33%)       Hobart $525,313 (+0.38%)       Darwin $347,105 (-0.72%)       Canberra $496,490 (+0.93%)       National $528,262 (-0.02%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 10,189 (-104)       Melbourne 14,713 (+210)       Brisbane 7,971 (+283)       Adelaide 2,420 (+58)       Perth 6,383 (+298)       Hobart 1,336 (+6)       Darwin 228 (-12)       Canberra 1,029 (+8)       National 44,269 (+747)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,795 (-1)       Melbourne 8,207 (+293)       Brisbane 1,636 (+1)       Adelaide 421 (-4)       Perth 1,664 (+15)       Hobart 204 (-1)       Darwin 404 (-2)       Canberra 988 (+12)       National 22,319 (+313)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $800 (+$5)       Melbourne $600 ($0)       Brisbane $640 (+$10)       Adelaide $600 ($0)       Perth $660 ($0)       Hobart $550 ($0)       Darwin $700 ($0)       Canberra $690 ($0)       National $663 (+$2)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $750 ($0)       Melbourne $590 (+$10)       Brisbane $630 ($0)       Adelaide $490 (+$10)       Perth $600 ($0)       Hobart $475 (+$23)       Darwin $550 ($0)       Canberra $570 (+$5)       National $593 (+$4)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,364 (+80)       Melbourne 5,428 (+4)       Brisbane 4,002 (+12)       Adelaide 1,329 (+16)       Perth 2,113 (+91)       Hobart 398 (0)       Darwin 99 (-5)       Canberra 574 (+39)       National 19,307 (+237)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,687 (+257)       Melbourne 4,793 (+88)       Brisbane 2,098 (+33)       Adelaide 354 (-11)       Perth 650 (+5)       Hobart 135 (-1)       Darwin 176 (-9)       Canberra 569 (+14)       National 16,462 (+376)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.59% (↑)      Melbourne 3.15% (↑)      Brisbane 3.45% (↑)        Adelaide 3.57% (↓)       Perth 4.12% (↓)       Hobart 3.79% (↓)     Darwin 5.45% (↑)      Canberra 3.61% (↑)      National 3.33% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.21% (↓)     Melbourne 6.16% (↑)      Brisbane 6.06% (↑)      Adelaide 5.77% (↑)        Perth 7.05% (↓)     Hobart 4.70% (↑)      Darwin 8.24% (↑)        Canberra 5.97% (↓)     National 5.84% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.8% (↑)      Melbourne 0.7% (↑)      Brisbane 0.7% (↑)      Adelaide 0.4% (↑)      Perth 0.4% (↑)      Hobart 0.9% (↑)      Darwin 0.8% (↑)      Canberra 1.0% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.1% (↑)      Brisbane 1.0% (↑)      Adelaide 0.5% (↑)      Perth 0.5% (↑)        Hobart 1.4% (↓)     Darwin 1.7% (↑)      Canberra 1.4% (↑)      National 1.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 29.7 (↑)      Melbourne 30.9 (↑)      Brisbane 31.2 (↑)      Adelaide 25.1 (↑)      Perth 34.4 (↑)      Hobart 35.8 (↑)      Darwin 35.9 (↑)      Canberra 30.4 (↑)      National 31.7 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 30.0 (↑)      Melbourne 30.5 (↑)      Brisbane 28.8 (↑)        Adelaide 25.2 (↓)       Perth 38.3 (↓)       Hobart 27.8 (↓)     Darwin 45.8 (↑)      Canberra 38.1 (↑)      National 33.1 (↑)            
Share Button

TikTok Crypto Influencers Are Teaching A New Generation of Investors

An informal group of self-styled cryptocurrency advisors are using TikTok, Discord and other online platforms to reach nascent crypto investors.

By CONNOR GOODWIN
Tue, May 25, 2021 6:00amGrey Clock 5 min

On March 22, 2020, the day before the United Kingdom announced its first Covid-19 lockdown, Joel Davies joined TikTok, excited by the buzz surrounding it. He was unaware that doing so would lead him toward life-changing money. Davies, 23, had been interested in cryptocurrency since the age of 16, but apart from a small investment in Bitcoin, his curiosity remained on the back burner while he finished his studies in film, television and digital production at Bath Spa University. After graduating in 2019, Davies moved back into his parents’ house in South Wales, stacked savings from his marketing job and, in the evenings, logged on to a Discord server, a communication platform he discovered through Dennis Liu, 26, a leading crypto influencer on TikTok, who also goes by the name VirtualBacon.

“When I found VirtualBacon on TikTok, that spurred me more into investing and learning about [cryptocurrency],” says Davies. Liu’s down-to-earth style and emphasis on research and analysis stood out to Davies in a space that he saw as rife with shilling, scams and hyperbolic price targets. Aided by VirtualBacon’s Discord community and TikTok videos, Davies learned the basics of investing in crypto, including how to trade on centralized exchanges and create a digital wallet, then more advanced skills, such as how to analyze tokenomics and assess the fundamentals of a company. He made his first crypto investment a month into the U.K. lockdown. Over the course of a year, Davies says he transformed his initial investment of 2,500 GBP into nearly 100,000 GBP (about $3,548 into nearly $141,930).

Perhaps no other market is more susceptible to social media’s influence than cryptocurrency, where, for instance, a single tweet from Elon Musk can pump Dogecoin, a meme currency, to all-time highs or send Bitcoin spiralling. One TikTok user created a coin called SCAM (“Simple Cool Automatic Money”) as a joke and it grew to a $70 million market cap an hour after its release. It is currently at an approximately $850,000 market cap.

Newer, self-directed investors are more likely to put their money in riskier investments like cryptocurrency, in part because of the thrill, novelty and social cachet, according to a study commissioned by U.K. watchdog Financial Conduct Authority. Much of cryptocurrency’s buzz, the study found, is due to influencers and hype on social media. An informal coterie of crypto enthusiasts has recently flocked to TikTok because it represents the greatest potential to expand their audience, says Liu. And the audiences they are reaching likely skew young, according to an April survey from Pew Research Center that shows 48 percent of adults under age 30 say they use TikTok, compared to just 22 per cent of those ages 30 to 49. Scams—like meme economies in which online memes are treated like financial commodities and vice versa as well as pump-and-dump schemes—also run rife, according to some influencers on the platform.

“When I started doing crypto [videos] on TikTok, nobody was doing them,” Liu says. Liu’s first foray into crypto was mining Dogecoin—using computers to solve complex mathematical problems in order to introduce new coins into circulation—from his McGill University dorm room in 2014. In 2017, he had some extra cash he wanted to invest and crypto was what he knew best. “It’s a more risky playing field, but, in a weird way, that’s kind of more fair for someone that’s new—a younger audience,” he says. Liu’s most popular TikTok videos are timely analyses, he says, of major price shifts in Bitcoin and Ether, especially when they dip, and other highly traded crypto assets. “People on TikTok are often very new investors, so those types of videos do well,” he says. “It’s not just analysis, but a bit of reassurance to calm their minds in the volatile crypto market.” In his videos, his straightforward delivery, talking over a green screen that displays a coin’s chart or other information, is now a popular format on crypto TikTok.

CryptoWendyO, the TikTok username of a person who says she is a woman in her 30s and declined to give her real name, saying that she has experienced online harassment, makes four to eight TikTok videos a day, analyzing Bitcoin’s price movement, responding to questions in the comments or rounding up the top three daily news stories in crypto. Her most-watched video has over 500,000 views and details a simple investment strategy known as the “moon bag.” “The moon bag strategy is you pull out your initial investment once you’re in profit, and then you take your initial investment and roll it into another project,” she says. “Rinse and repeat.”

CryptoWendyO says she didn’t take TikTok seriously at first but was won over after Ben Armstrong, who goes by BitBoy Crypto, among the most popular crypto accounts with over 2.6 million TikTok followers, encouraged her to join. “TikTok is a great platform to get a large amount of information in a very short amount of time,” says CryptoWendyO. “I can get a lot more on a TikTok video than I can on a Twitter [thread], and more people are going to watch the TikTok.”

Lucas Dimos, 20, known on TikTok as TheBlockchainBoy, says he first heard of Bitcoin from his mom in 2017. “I came for the money, but I stayed for the tech,” he says, echoing a common refrain on crypto social media. Later, he started his own blockchain company, CryptoKnight, to develop an algorithmic trading bot and today runs a Discord server by the same name. Dimos joined TikTok on January 27, 2021 in the heat of the GameStop short squeeze. Since then, he has gained more than 210,000 followers.

study by Paxful, a cryptocurrency trading platform, analyzed more than 1,200 videos from TikTok finance influencers and determined that one in seven videos misleads viewers by encouraging them to make investments without making clear the content is not meant to be taken as professional financial advice. The study did not conclude whether or not the videos intended to mislead. Dimos describes what he sees as an ecosystem of undisclosed paid promotions. “Developers will go to the influencer and say, ‘We want to give you $3,000 worth of this token—make a video, hype it up and then you can sell for a massive profit,’” he says. (Dimos and CryptoWendyO say they disclose all of the sponsors in their videos, per TikTok’s community standards. Liu did not respond to a request for comment about compensation and sponsorship.)

TikTok declined to comment for this article. Its community guidelines state, in part: “We remove content that deceives people in order to gain an unlawful financial or personal advantage, including schemes to defraud individuals or steal assets.”

Dimos and CryptoWendyO stay away from meme coins, which tend to be online jokes that are turned into cryptocurrencies, like Dogecoin. “By the time the videos circle TikTok’s algorithm, the coin is already pumped and dumped,” says CryptoWendyO. This happened on May 12 with Shiba Inu, a meme coin, which the coin’s website has nicknamed the “Dogecoin killer.” In part thanks to viral TikTok videos targeting investor FOMO—“fear of missing out”—in the wake of Dogecoin’s parabolic rise, $SHIB rocketed in price, increasing 25-fold within the beginning of May, until an approximately $1 billion sell-off by Ethereum co-founder Vitalik Buterin, which he said was a donation to help fight Covid-19 in India, caused $SHIB and several other meme coins to plummet.

Dimos believes all the scamming—what insiders call “rug pulling”—that happens on TikTok in particular, not only takes advantage of new, vulnerable investors, but also tarnishes the image of cryptocurrency. “Every meme coin that exists today feels like a spit in the face to people like me who’ve worked for the professional blockchain industry,” he says.

After becoming an early and active member of VirtualBacon’s Discord server, which has over 20,000 members today, Davies recently joined VirtualBacon in an official capacity, serving as the content marketing lead for BaconDAO, or “decentralized autonomous organization.” Led by Liu, a community of expert contributors shares daily market analysis, picks for low-market-cap “gems” and other insights, while the community can vote on what topics Liu will cover in his TikTok videos, ask questions and chat about their trades. Although it’s not yet publicly listed, those who purchase and hold the $BACON currency will gain access to BaconDAO exclusive content.

TikTok has exposed a class of new investors to cryptocurrency, but for crypto influencers it is now becoming a feeder channel for other online platforms, like the BaconDAO community and Patreon, where many influencers monetize their Discord channels by charging for access. Young crypto investors seem to be particularly mercurial. In March 2021, one year and six figures later, Davies became bored by TikTok and deleted it.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 21, 2021.



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Money
Nike Reverses Course as Innovation Stalls and Rivals Gain Ground
By INTI PACHECO 23/04/2024
Money
The Secret Retreats That Have CEOs, VIPs and Billionaires Jockeying for Invites
By SARA ASHLEY O’BRIEN, EMILY GLAZER, JESSICA TOONKEL 22/04/2024
Money
Inside Amazon’s Secret Operation to Gather Intel on Rivals
By DANA MATTIOLI, SARAH NASSAUER 20/04/2024
Nike Reverses Course as Innovation Stalls and Rivals Gain Ground

Shoe giant stumbled as CEO John Donahoe pulled away from retailers and relied on old hits. Now it says it’s refocusing on cutting-edge footwear for athletes.

By INTI PACHECO
Tue, Apr 23, 2024 10 min

In late February, Nike boss John Donahoe led a virtual all-hands meeting where he delivered a message to his staff: The company wasn’t performing at its best and he held himself accountable.

Two weeks earlier, Nike had announced it would lay off more than 1,600 employees .

Now, as the CEO spoke at the meeting, critical comments started to fill the chat window on the Zoom call while more than 20,000 employees watched.

“Accountability: I do not think that word means what you think it means,” an employee wrote. “If this is cost cutting, how about a CEO salary cut?” another wrote. Soon a cascade of laughing emojis filled the screen.

Some colleagues warned others that their posts weren’t anonymous and the chat might be monitored. The attacks went on for several minutes. “I hope Phil is watching and reading this,” an employee wrote, referencing the retired Nike co-founder Phil Knight .

The virtual protest illustrated the depths of the dissatisfaction within the sneaker giant and concern for its strategy. “How did we actually get here?” wrote one product manager.

Since the pandemic, Nike has lost ground in its critical running category while it focused on pumping out old hits and preparing for an e-commerce revolution that never came. The moves, current and former employees say, have eroded a culture of innovation and edginess that made Nike one of the world’s best-known brands.

Donahoe had told The Wall Street Journal in 2020 that his No. 1 priority when taking over the company was “don’t screw it up.” Four years later, the company is unwinding key elements of the CEO’s strategy that have backfired as a growing number of upstarts nip at its heels.

Among the reversals: As Covid raged and more shopping moved online, Nike cut ties with longtime retail partners such as DSW and Urban Outfitters and tried selling more merchandise directly to consumers. It is now asking some of those stores for help clearing out its overstuffed shelves and warehouses.

“I would say we got some things right and some things wrong,” Donahoe said Thursday, in an interview at Nike’s Beaverton, Ore., headquarters.

Losing its roots

The strategic missteps have animated a debate inside the company about its identity. In its zeal to boost digital sales, some current and former employees say, Nike veered from its roots as a maker of cutting-edge footwear for serious athletes. It has opened itself to competition from newcomers such as On and Hoka, which have borrowed from the playbook that fuelled Nike’s rise—including focusing on sport over lifestyle, and taking risks on innovation.

Nike’s once torrid growth has stalled . Sales for the quarter ended Feb. 29 were flat compared with a year earlier, and shares in the company have declined 24% over the past year, compared with a 19% gain in the S&P 500.

Donahoe in the interview acknowledged the brand lost its “sharp edge” in sports and needed to boost its “disruptive innovation pipeline.” The CEO said the brand’s marketing got fragmented and that with people going back to bricks-and-mortar stores, it was clear Nike needed to invest in its retail partners.

Nike executives said in interviews that the company became too cautious after the pandemic and overly reliant on older products that were reliable sellers. They said the company has made significant changes in recent months to refocus it on putting out cutting-edge footwear.

“We were serving consumers what they know and love,” said John Hoke , Nike’s recently named chief innovation officer. “The job is to of course do that but also to show them something new, take them someplace new.”

Donahoe said Nike is going through a period of adversity and layoffs that has created uncertainty, but that the company will get through it. “Our employees have been through a lot,” he said. “Nike is actually at its best, like a great sports team, when our backs are against the wall.”

Knight, who is chairman emeritus of the board and the company’s largest shareholder, said in a statement that Donahoe has his “unwavering support.”

Donahoe said employees’ responses to the all-hands meeting reflected one of Nike’s biggest strengths: how much its staff cares about the company. “We welcome and encourage that,” Donahoe said.

Shift into digital

Donahoe took over Nike just before the pandemic, at a delicate time. Though he inherited a market leader and one of the world’s best-known brands, Nike was seeking a refresh after it dealt with complaints about its workplace culture that led to a management shake-up .

The Evanston, Ill., native had been CEO of eBay , where he doubled the e-commerce platform’s revenue during a seven-year stint that ended in 2015. After a sabbatical—during which he says he had a life-altering experience at a 10-day Buddhist silent meditation retreat—Donahoe went on to run cloud-computing company ServiceNow .

When he took the helm of Nike in early 2020, his marching orders from Mark Parker , his predecessor and current executive chairman, and Knight were clear. He was to turn the world’s biggest shoe maker into a tech company more directly connected to consumers through its own apps, which in turn collect valuable data from shoppers.

Parker said when he stepped down that Donahoe was the right candidate to lead Nike’s digital transformation.

Donahoe was just the fourth CEO in the company’s more than 50-year history. The only other outsider to get the job said he was ousted in 2006 after a short stint because he focused too much on the numbers .

Donahoe started out with a 100-day global listening tour that was cut short after a month when the pandemic hit.

Covid lockdowns fuelled a surge in online shopping. Digital channels accounted for 30% of Nike’s sales in May 2020, about three years ahead of schedule.

Donahoe saw it as an acceleration of an inevitable shift and adjusted Nike’s plans accordingly. A few months in, he redoubled the company’s bet that it could make more money by selling products directly to consumers through its stores and digital channels. He said he believed digital sales would reach 50% of the business, and Nike should transform faster to define the marketplace of the future. It was time to act.

By late 2020, Nike dropped about a third of its sales partners and sold less merchandise to clients such as Foot Locker , DSW and Macy’s . There had been a plan to phase out wholesale clients since 2017, but with digital sales growing quickly, Donahoe said there was a need for urgency.

Executives were divided over whether Nike’s own stores, which include both factory outlets and specialty shops selling higher-priced new releases, could fill the sales void left by the retailers the company was cutting out.

In meetings, finance chief Matt Friend and Nike president Heidi O’Neill supported the aggressive exit from retail that Donahoe was pushing, while others favored a slower transition, people familiar with the matter said.

Some executives felt the specialty stores in particular worked better as marketing tools and that cutting off so many retailers so fast would backfire, the people said. Donahoe and his allies prevailed.

Nike teams were tasked to come up with a new global supply-chain process. Selling directly to consumers increased the company’s liabilities, including by shifting storage and shipping costs from wholesalers to Nike. The company would also absorb the losses from discounts if the merchandise didn’t sell quickly and inventory piled up.

One of the casualties of Donahoe’s 2020 transformation was a multibillion-dollar operation dedicated to developing footwear sold for under $100. The company deprioritised more-affordable footwear that usually sold to the sales partners that Nike was leaving behind. The move left Nike skewed toward higher-priced shoes.

The first evidence of cracks in Nike’s new approach appeared early last year when Foot Locker Chief Executive Mary Dillon said during an earnings call the brand had reversed course and was sending the retailer a wider assortment of Nike products. By the summer, Macy’s and DSW were saying the same thing.

The message was clear: Nike needed help selling merchandise.

Nike veterans said cutting off wholesale clients was one of the biggest mistakes the company has ever made. After digital sales hit the 30% of the total mark early in the pandemic, they dropped back, and haven’t reached that level since—let alone the 50% target Donahoe had foreseen.

Donahoe said in the interview the goal at the time was to lean more on specific partners, such as Dick’s Sporting Goods and JD Sports , which he considers to be more aligned with Nike, rather than make a dramatic shift in strategy. Nike deprioritised making lower-priced shoes because of supply-chain disruptions during the pandemic, but it is now making more of those products, he said.

“I don’t see it as a reversal of the strategy,” Donahoe said of the return to more retail chains. “I see it as an adjustment.”

Rising competition

Competitors have been using the sneaker giant’s playbook at its expense. Smaller brands like On, Hoka and New Balance have captured significant pieces of the market for both hard-core and everyday runners—and their popularity is spreading to the mainstream.

Often quoting Knight, the Nike co-founder, former employees said the principle always was to first capture the market for hard-core athletes with innovative performance gear, and the casual consumer would follow.

In early February, Hoka owner Deckers Outdoor tapped Nike alums to take over both the parent company and the shoe brand. Hoka had $1.4 billion in sales for the year through March 2023, compared with about $352 million three years earlier.

Hoka didn’t respond to requests for comment.

“When you’re the biggest, there’s always going to be people coming after you,” Donahoe said. Competitors give Nike an incentive to try to understand what consumers want and to figure out how to come up with something bold and different, he said.

Nike still dwarfs its competition . During Donahoe’s tenure, Nike sales have grown 31% to $51 billion in 2023. That is more than double the results of Adidas, its closest competitor by far. New Balance reported sales reached $6.5 billion last year, and upstart On almost hit the $2 billion mark.

The race to hit revenue targets came at a cost for Nike. Executives turned to the brand’s lucrative franchises, including Air Jordan and Dunk, and ramped up the releases. The strategy diluted the exclusivity prized by die-hard Nike sneaker shoppers.

Donahoe said in the interview that Nike ramped up production to meet demand on its SNKRS app, which fans use to buy the latest limited releases. In early 2021, Nike was meeting less than 5% of the demand for some releases on the app and consumers were frustrated, Donahoe said, adding the goal is to meet something closer to 20% of demand for the exclusive styles.

Now, sneaker resellers say they have seen release after release of Nike’s limited-edition kicks that don’t sell out on the SNKRS app, and that in the secondary market—a space that the brand closely monitors —prices are tanking.

Nike executives in March said they would pull back on franchise releases.

Donahoe said “franchise management has always been something Nike has done.”

Nike’s digital sales, a figure that includes direct and partner e-commerce sales, declined for the quarter ended Feb. 29. Friend, the finance chief, told analysts in March that Nike expects total sales to decline at least until the end of this year.

Struggle for innovation

The pursuit of sales growth from limited-edition sneaker releases led Nike to neglect its running category, long considered the core product of the company, former employees said.

This month in Paris, Nike unveiled its new product line for the Olympics, including running shoes with a new cushioning system that uses the company’s Air technology.

In interviews at the event, executives said the company had become somewhat risk-averse during the pandemic, when working remotely stifled creativity. Martin Lotti, chief design officer, said the company had spent too much time looking to its past.

“If you drive a car just by looking in the rear view mirror, that’s not a good thing,” Lotti said. “The bigger opportunity is the windshield.”

Current and former Nike executives believe the future of the company is in its app ecosystem , like the Nike Training and Running Club or its SNKRS app, and the data it can harness from them to help design and sell products. Inside the company, leaders have long tried to draw comparisons to Apple when talking about Nike’s innovation and design culture.

The sneaker giant has been acquiring smaller data analytics startups for at least a decade. Two years ago, it also bet on the NFT craze .

One of Nike’s biggest tech investments is a multibillion-dollar process to migrate multiple software programs into one single system. The new platform, known as S/4HANA, is still not operational and is three years behind schedule. The software is designed to help day-to-day operations, such as procurement and inventory management, and speed up digital sales.

As part of its accelerated focus on digital sales, Nike hired about 3,500 people to join what the company calls its global technology group, which includes consumer insights and data analytics. Executives at the time said they were investing in “demand sensing,” “insight gathering” and a new inventory system.

Former Nike employees with knowledge of the consumer insights strategy said executives misinterpreted the data in ways that overestimated demand for retro franchises.

During February’s round of layoffs executives trimmed layers of management across the company’s insights and analytics teams. A large technology innovation team, tasked with developing software to implement Apple’s new Vision Pro augmented reality system in day-to-day design tasks, and a separate artificial intelligence team were also eliminated.

Executives at Nike say it is entering a “supercycle” of innovation and that the new Air line of products enhances athlete performance.

At the Olympics preview event this month, the company took over the historic Palais Brongniart in central Paris with a three-day event to unveil its new Air line. Guests wandered through a museum-like, conveyor-belt installation highlighting Nike’s product evolutions and research and development programs. Athletes including runners Sha’Carri Richardson and Eliud Kipchoge modeled the new gear. Retired tennis great Serena Williams narrated the company’s lavish introduction video before appearing on stage.

Outside, 30-foot orange statues of Nike-sponsored athletes including LeBron James, Kylian Mbappé and Victor Wembanyama stood guard.

Donahoe’s relationship with Knight goes back to the early 1990s, when he was a Bain consultant on Nike projects. He joined the Nike board in 2014 and is one of the directors of an entity Knight created called Swoosh LLC, which holds roughly $22 billion worth of Nike shares and controls a majority of Nike’s board seats. Donahoe calls Knight his “greatest hero in business.”

The current CEO said he meets with his predecessor, Parker, every week.

Donahoe said that he and Parker share an approach to management he calls “servant leadership” that was embodied by some of his sports heroes, including basketball coaches Phil Jackson, John Thompson, Mike Krzyzewski and Tara VanDerveer.

“It’s never been about me. It’s about your players. And are you doing everything you can to allow your players to make the adjustments to win? And when you have a win it’s about the players and when you have a loss you say it’s on me, right?,” he said. “And that’s what I’ve always tried to embody, including during this period of time.”

This week, Donahoe is facing another test: the company is notifying several hundred more workers whose jobs are being cut.

MOST POPULAR
35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

Related Stories
Money
Everyone’s Over ‘Quiet Luxury.’ Here’s What’s Next
By RORY SATRAN 27/02/2024
Money
Slowly but surely, inflation moves in the right direction
By KANEBRIDGE NEWS 10/01/2024
Property
The ‘single biggest factor’ driving the rise in first homebuyer activity for Australians
By Bronwyn Allen 16/01/2024
0
    Your Cart
    Your cart is emptyReturn to Shop