Edition No. 15 Nike’s Digital Transformation - AMORE STORIES - ENGLISH
#Digital Design
2019.05.02
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Edition No. 15 Nike’s Digital Transformation


 All of us have probably bought Nike's clothing or shoes at least once. Some might have bought a product for its value as a collectible, such as the popular Air Max or Jordan brand, and some would have bought running shoes or soccer cleats for working out. Nike is a very close and familiar sports brand in our lives. But you might think a bit differently if you knew more about the activities continuously pursued by Nike. Let's take a look at the digital activities of Nike to see how a product manufacturing company can transform when it maximizes digital experience focusing on Nike, a brand that has been pursuing digital transformation for quite some time.


Wearable Devices and Online Community Clubs

 In 2006, Nike in collaboration with Apple launched a product called Nike+. It developed a service that tracked the performance of runners with an oval-shaped sensor on shoes by linking it to iPod, which was sensational at the time. Commercialized wearable devices were not common at the time, but Nike added a new value to running by giving people a mission to compete and achieve goals in an exercise that was considered boring and an activity you do alone. Since then, Nike launched Nike+ FuelBand in 2012, and it continues to release the Apple Watch Nike+ series in collaboration with Apple. The brand is also accelerating its efforts to promote online communities through its running app Nike Run Club and its workout app Nike Training Club.
 If you like to run, you might have shared your run on SNS with this app at least once. The Nike+ Run Club allows you to get your own coaching plan from NRC coaches and pacers through its 'audio guide running'. It was developed to enable you to interact with more than 25million app users across the world to improve your performance and enjoy your workout. This network maintains its data using more than 150million relationship graphs using Amazon Neptune. You can also share by linking SNS after providing user consent. This allows users to share runs and compete with friends, giving them a sense of feeling that you are running together with other people.
  • Amazon Neptune sends recent relationship data with people connected to the user using social networking services
    (Source : https://aws.amazon.com/ko/)

 Recently, home training as a way to workout at home without being restricted to time or money is becoming popular. Nike also provides a professional home training service.

 The Nike Training Club app provides more than 100 workouts with audio and video guidance designed by experts and customized to each workout level. You can choose the exercise you like and create a workout plan accordingly. The app recommends workouts for specific body area or for specific goals such as 'get leaner stronger abs' or 'always ready for the beach'. It is also easy to choose the training you want by browsing by muscle group or workout type. You can keep track of and check your workouts or share your stats with friends via the leaderboard like in Run Club. Nike also holds regular offline events to help users work out together on exercises difficult to do by themselves.

The Introduction of Nike Training Club APP (Source : https://youtu.be/TtDKIgHKw60)

 Nike also presented a new service called NikeConnect using near-field communication (NFC) tags in partnership with NBA in 2017. If you take your smartphone near the chip built in the bottom of a jersey, you can unlock various information related to the jersey, including its history and NBA highlights. This caught the eye of many due to the fact that it created a network connecting fans and athletes, moving beyond simply wearing your favorite jersey to cheer for your team.

The Introduction of Nike NBA Connected Jersey (Source : https://youtu.be/UyUO_jSnE2c)



Planning Offline Stores based on Customer Data

 Nike uses customer data when designing a store as well to provide the best products and services to customers. The two examples this column wishes to share is the Nike by Melrose opened in LA in 2018 that uses the Nike App the most and the Nike NYC House of Innovation 000, a six-story building on Fifth Avenue, New York.

 Nike by Melrose is designed to offer a selection of products and offerings preferred by the neighborhood based on online purchase and customer data. This concept store uses online purchasing data to change product offerings every two weeks. Nike analyzes products in categories 'lifestyle' and 'running' for the most popular products among Nike customers to design store display and inventory according to gender and preferred style.

 Nike House of Innovation also analyzes app and website user data to offer the best and popular products in New York.
 Both stores have 'speed shops' with digital lockers where Nike+ members can tap reserve on their mobile app and pick up their product at the digital locker. Members can also try the products on by reserving the product and date they want on the app and picking them up at the PICK-UP box.
 All products in the store are enabled for customers to check production information, such as size and color, and make instant purchases by scanning the QR code or barcode using Nike App. The key is that customers can reduce the time they spend waiting in line.

Nike Digital: Voices of Nike Digital (Source : https://youtu.be/irauBB58ETw)



Epilogue

 Nike's trademark slogan Just Do It was created in an advertising agency's meeting in 1988. And even after 30 years, Nike continues to make different changes and attempts suitable to this slogan. It thinks about various digital experiences on linking technology with consumers from its flagship website and mobile apps to digital marketing and retail shops. Nike is continuously growing as a global brand through inspiration, innovation and experiments (although, of course, it is already a huge global brand).

 There were many challenges until the above-mentioned services were released. FuelBand, which is considered a success story in the fitness band category, also face a challenge of being sued by class action in 2013 for allegedly misleading statements about the product, claiming that it does not accurately track data unlike advertised. But Nike's persistent efforts despite the twists and turns along the journey are now shining through.

 Vice President of Digital Sports, Stefan Olander (former Head of Digital Innovation for Nike), who visited Korea for the Digital Marketing Summit 2019 early this year, said that innovation is a combination of instinct and habit. Digital transformation also seems to be a process of numerous tests towards innovation.

 Things we have done habitually becomes easier to do after time. This may be something that is especially difficult in a legacy industry. It is not as easy to move beyond the things we are good at like manufacturing and sales to combine community service and technology. But paying close attention to and working towards these high value-added industries is the fastest way to creating something new. A true digital transformation means to try different digital strategies so that the resources of the brand can naturally blend in customers' lifestyle.


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