“Digital is now fundamental and central to everything consumers do, and we are the clear leader in digital. We’ll double-down on that,” said John Donahoe, President and CEO of Nike during the brand’s recent announcement about Nike’s move toward more digital enhancements and activations, and a subsequent reorganization of Nike leadership. Donahoe added, “We think there’s some pretty fundamental shifts in consumer behavior that give us this opportunity to accelerate our progress. One shift is digital.”
Nike Hopes To Accelerate Direct-To-Consumer Sales With Its New Digital Strategy
Nike’s new digital-forward strategy aligns with their Consumer Direct Acceleration (CDA) plan, which was announced in June. According to Nike, “CDA is a new digitally empowered phase of NIKE’s strategy to unlock long-term growth and profitability.” The Nike CDA plan includes a more “seamless consumer experience” and a unified technology foundation that will be more nimble and will more easily meet consumer needs across the Nike ecosystem. The Nike leadership changes are in service of their flatter, more streamlined approach to business. The CDA is the latest effort by Nike to accelerate their direct-to-consumer (DTC) position in the market, an area the brand has been emphasizing in recent years, with double-digit sales increases as a result.
Nike Opens New Digital Superstore, Nike Rise, In China
Nike’s digital footprint has always integrated their digital strategies with their brick-and-mortar experiences. The Nike NYC “House of Innovation” flagship store in New York City and Nike by Melrose in L.A. each offer a variety of data- and consumer-based digital integrations. And now Nike is opening its first Nike Rise store, located in Guangzhou, China, the first of what will likely be many Nike Rise retail experience stores that integrate community activities, app integrations and digital services.
Brands Shake Things Up As The Pandemic Accelerates Digital Behaviors
Nike isn’t the only brand making leadership changes or moving forward aggressively with digitally focused ideas that may have been in place before the pandemic but are now urgent given the changing habits of consumers. Increasingly reliant on ecommerce, safe shopping experiences and seamless purchase and delivery options, consumers are more likely to become loyal customers if their needs are effectively met.
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