By Sam Liebskind and Kris Pelletier
As announced last month, Nike and Cole Haan are parting ways after 24 years.
The original vision for the acquisition was a model in which both brands benefited, with Nike making strides (sorry!) in the fashion space and Cole Haan benefitting from Nike’s credibility and marketing power.
But that brand relationship, while long-lived, never fully blossomed. Cole Haan did become infused with “Nike-ness,” most obviously in borrowing naming conventions (Air Franklin) and performance technology (Lunarlon cushioning!). And classic sneaker style even emerged through bold color and texture choices. But Nike received little in return, with few consumers even recognizing their ownership of Cole Haan.
Now, Nike is pulling the trigger to tighten up, betting on continued international expansion and enhancing the technological innovation and sustainability angle of its core brand. Going forward, the company will use its internal Venture Capital arm (the Sustainable Business & Innovation lab, established last September) to acquire companies focused on alternative energies/efficient manufacturing and brands promoting healthy lifestyles (hello Patagonia?!).
And Cole Haan? Where might this brand land? Over the past month, analysts have predicted that another shoe company (like Wolverine Worldwide) or a massive house of brands (like VF Corp) might gobble up Cole Haan, but we’d hate to see this happen.
From a brand perspective, it’d be significantly more fulfilling to see someone like J. Crew step up. Someone who could fill the influential parent role more actively, who could benefit from the natural brand synergies that Cole Haan enables, and who could use Cole Haan to fill out their ecosystem.
Right? If you were J.Crew, wouldn’t you consider picking up Cole Haan? At their best, both go for that “new vintage-luxury,” emphasizing attributes like craftsmanship, pride, and heritage. While Nike-ness showed the Cole Haan brand new directions, J.Crew could bring it back to its classic American roots while maintaining the design-focused ethos that Nike successfully embedded.
And integration wouldn’t even be that hard. Through its “In Good Company” program (which it describes as “Our gallery of brand partnerships- a meticulously curated collection based on quality, craftsmanship, and of course, cool factor”), J.Crew has established itself as a curator, an authority on style. And in doing so, it has created an ecosystem that encompasses more than just clothing. With partnerships ranging from Ray-Ban to Alden already in place, why not make the jump to own and influence some of these brands?
As it looks to expand its retail footprint, J. Crew could use a brand-led acquisition strategy to take the In Good Company thinking to the next level. If successful, the brand will find huge growth as they evolve from from a product-focused brand into a curatorial ally.
Image by HighSnobiety