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Over 300 million reasons why Nike dominates digital

With stores temporarily closed at various times over the past two years, Nikeit is (NYSE: NKE) business has been heavily impacted. A 5% year-over-year sales increase in the third quarter of fiscal 2022 (ended Feb. 28) shows that the company continues to move in the right direction by posting gains.

But the continuous investments the company has made in recent years to strengthen its technological base offer a new lever of growth for the world’s best athletes. clothes brand. Nike currently has over 300 million members in its growing ecosystem. This massive figure demonstrates the digital prowess of the company.

Image source: Getty Images.

The nascent ecosystem of Nike

Nike offers a full suite of digital apps, including the flagship Nike mobile app, SNKRS app, Nike Training Club and Nike Running Club. While the latter two are activity-based, the former two are where customers can purchase the company’s products. What’s remarkable is that all of these digital apps work together to strengthen and strengthen the business ecosystem.

For example, last year Nike collaborated with hip-hop artist Megan Thee Stallion to create workout content. Nike members who took these exercise classes may have subsequently received emails with personalized clothing recommendations inspired by the musician.

But it does not stop there. The combination of digital experience and in-store shopping is a key part of Nike’s Consumer Direct Acceleration strategy. New store formats, such as Nike Live, House of Innovation and Nike Rise, create a seamless and seamless omnichannel offering. In stores, shoppers can use their Nike app to get product information, choose items to try on in a fitting room, and get one-time discounts to redeem.

Nike CEO John Donahoe hails from eBay, so he knows a thing or two about digital commerce. In the last quarter, digital sales accounted for 26% of Nike brand activity. The management’s objective is to one day bring this figure to half of the total turnover, which would be a godsend for profitability because this channel produces higher margins.

Having a robust digital ecosystem is a key differentiator between Nike and its competitors. The massive amount of data the company collects helps inform product development and marketing initiatives, which ultimately drives higher ROI. And by creating a smooth and seamless onboarding process, more consumers will sign up for Nike’s apps in the future. It further allows the company to develop deep connections with its customers, an invaluable advantage in today’s cut-throat retail environment.

For Nike, it’s about the unmistakable power of the brand. As management relentlessly focuses on further integrating technology into the business, thereby strengthening the digital ecosystem, Nike will only gain popularity among consumers.

Shareholders can expect that world leader in sportswear and footwear to maintain its position at the top of the industry.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool holds positions and endorses Nike. The Motley Fool recommends eBay. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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