Already the global leader in apparel and footwear, Nike Inc. revealed its ambitious growth plans in June 2017 with the announcement of a new company reorganization, named the Consumer Direct Offense, and its key underlying strategies, the Triple Double Strategy and the Nike Consumer Experience, or NCX.
Together, the strategies aim to fuel growth by leveraging digital technologies to drive traffic to Nike’s direct sales channels, both on and offline, with the help of the NikePlus loyalty program.
NikePlus is at the center of Nike’s digital channels
Free to sign-up for, the NikePlus loyalty program offers members a host of benefits including free shipping on all orders, access to member exclusive products, and various awards based on spending and fitness app usage. More importantly, the program powers Nike’s e-commerce sites and suite of mobile apps. These provide the company with invaluable customer data it can utilize to provide personalized recommendations on its digital channels, as well as to supply select stores with curated products based on local market preferences.
NikePlus facilitates in-store processes in new retail concepts
In the two years since the announcement, Nike opened a number of new store concepts showcasing the focus on localization, personalization and digitally connected shopping experiences that characterize its new retail strategy.
In July 2018 Nike opened the first iteration of its Nike Live store concept, Nike by Melrose, in Los Angeles, California. A service hub for local NikePlus members, Nike by Melrose features Curb Services and pick-up lockers. The store also features a NikePlus Unlock Box where members can redeem rewards, in addition to a frequently refreshed selection of city-specific styles determined by digital commerce data from local NikePlus members.
In October and November 2018, Nike opened the House of Innovation stores, in Shanghai and New York, respectively, utilizing the NikePlus-powered Nike app to offer Scan to Try, Instant Checkout and other in-store efficiencies.
Digital solutions amid increasing competition
As the global health and wellness trend continues to attract consumers to sportswear for both exercise and everyday wear, Nike is doubling down on its direct channels in the face of increasing competition. As the world’s largest apparel and footwear company continues to integrate its NikePlus loyalty program into its online and in-store shopping experiences, it is betting on digital solutions and data-driven insights to further grow its market share.
For more insights, please see Nike’s Company Profile.