Daily Insights

Nike’s Digital Rebound

By: Alizah Asif Farooqi | Jul 09, 2018

Nike is giving digital-meets-physical a go with Nike Live, a new shop that’s stocked based on data retrieved from the NikePlus app. The brand says the shop has “pop-up vibes,” which doesn’t mean that it’s temporary (it’s not), but rather that new items will arrive on a bi-weekly basis rather than seasonally. After being dethroned by Adidas as the sole Genius brand in Gartner L2’s digital ranking, Nike has been hot on the heels of its rival. Nike Live might indicate that the brand is taking a tip from Adidas, which exemplifies growth via direct-to-consumer sales both online and offline.

While Nike does well at site personalization, Adidas is better at engaging with customers through buzzy product-launch content. This strength is also reflected in the brand’s stores, which offer personalized vertical retail experiences including product launches, fitness consultations, and product-customization opportunities. By unleashing a digitally-fueled and personalized store of its own, Nike might be able to similarly display its social prowess while also driving buzz via some of Nike Live’s in-store attractions. In addition to shopping breaks in the Dynamic Fit Zone lounge and taking sneakers for a spin in the Trial Zone, NikePlus members will have the added incentive of redeemable rewards from the NikePlus Unlock Box, a digital vending machine inside the new store.

This isn’t the first time Nike has tested out digital retail concepts. In February 2018, the brand hopped on the growing women-specific trend with Unlaced, which brought international stylists to female sneakerheads. Nike Live might take things a step further, not only engaging with the brand’s entire consumer base in a digital retail space, but also convincing them to become NikePlus users.