Big brands keep getting bigger. This year, Nike and adidas increased their market shares to maintain digital dominance, according to Gartner L2’s Digital IQ Index: Activewear. The study found Nike in first place and adidas ranking second.
The duo exemplifies the potential to achieve growth through a direct-to-consumer business model. Nike restructured its site around NikePlus loyalty benefits, establishing member-exclusive access across its multiple mobile apps. This digital focus bore out in the brand’s financial performance: Q1 of 2019 was Nike Digital’s first billion dollar quarter.
Meanwhile, adidas continued to masterfully execute product drops, setting a high bar for other brands looking to leverage the tactic. Both brands prioritized their women’s businesses: Nike launched its first-ever yoga collection in January, and adidas is collaborating with Beyoncé to target the burgeoning demographic of young female sneakerheads.
The North Face rose to join Nike and adidas, rounding out the Genius class. The brand is at the helm of VF’s stellar enterprise performance. The portfolio’s average Digital IQ increased 6% since last year. By standardizing strong customer service, check-out, and omnichannel capabilities across its portfolio, VF helps its brands leverage efficiencies and focus innovations on their category-specific differences.