Is Nike having a smart play by collaborating with Kim Kardashian’s Skims?

To set this straight, Nike isn't exactly desperate but the collaboration with Kim Kardashian's Skims comes at a strategic moment when the brand is looking to regain momentum, especially in the women's activewear market. Is this a smart move? Absolutely. Following the announcement, Nike's stock received a boost, indicating that investors see this as a strategic win.

However, it's a fact that Nike has faced market pressure with increased competition from brands like Lululemon, Alo Yoga, and Adidas has eroded its dominance in the women's athleisure space. Partnering with Skims allows Nike to leverage Kim Kardashian's influence and Skims' viral success, which will likely generate immediate hype and attract new customers.(after all KK a marketing machine!)

For Skims, the collaboration is hugely beneficial. While Skims is primarily known for shapewear, loungewear, and basics, this partnership enables it to break into true athletic wear, backed by Nike's sports science and technology. It allows Skims to transition from "just fashion" to functional, high-performance apparel while gaining access to Nike's extensive retail and e-commerce network.

Overall, it seems like a win-win situation for both brands. Nike might find more immediate advantages especially in sales, an edge in trendy in the women's athleisure market while maintaining its performance credibility. While Skims could see longer-term growth and innovation in its product line in addition to increased credibility, global expansion, and a direct entry into performance wear.