Intermediaries are not needed: how Nike builds direct work with consumers

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Intermediaries are not needed: how Nike builds direct work with consumers
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Until recently, shopping networks were the main channel for selling sportswear, and partnership with retailers was necessary for its manufacturers as air. But today everything has changed.

Of course, dependence on retail chains has always been not to the liking of leading sports brands, says Quartz. They badly lacked direct communication with consumers; In addition, the intermediaries in the face of retailers took away from them a solid part of the profits.

In the age of digital technology, brands got the long-awaited opportunity to communicate directly with consumers, and some of them - for example, the maker of Warby Parker glasses or the Everlane clothing brand - could grow only through online trading. Leading manufacturers of sportswear also strive to make the most of new technologies. Among them - Nike.

The American company can rightly be called the leader in the field of innovations in its industry. Moreover, Nike has every chance to become a real direct-to-consumer (working directly with the buyer) brand.

Just the other day Nike announced the purchase of Zodiac, which specializes in collecting and analyzing data on consumer behavior, in particular, helping to predict their future purchases. The sportswear manufacturer already has experience with Zodiac, and now intends to fully use its new resource - according to the head of the company Mark Parker, in working with consumers, Nike will be guided by the principle of "personalized approach on an industrial scale."

The new approach will primarily affect the participants of Nike + loyalty program and users of mobile applications of the company - these are the most loyal fans of the brand, who spend on average three times more money than regular visitors of the official online store Nike. By the way, in China, the Nike SNKRS application downloaded about 2 million times in the first month of operation, and in Japan the application was instantly the most popular free application in the local App Store.

In addition to online sales, Nike is actively developing its own chain of stores - there is also plenty of room for personalization of communication with customers. For example, the Nike application may prompt a shopper who has come to the store to find out what items are suitable for him-you can save your favorite clothes or shoes or buy them directly from the app. While this option is available only in several stores in Los Angeles and Portland, but soon must earn in other cities.

Digital technology and direct work with customers are the two main elements on which Nike's strategy is being built today. And while this strategy seems to be a win-win.
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