Crypto May Be Nike’s New Digital Business Strategy To Stay On Top
Sportswear manufacturer Nike is getting into the crypto game. Last week, Nike Inc filed an application with the U.S Patent and Trademark Office for the word “cryptokicks.” Details indicate the company has plans to create a new cryptocurrency driven e-com platform. This move represents the culmination of Nike’s direct to consumer business strategy, which was developed to defend its position as the number one footwear brand.
— Herbert R. Sim – Crypto🕴🏻 (@HerbertRSim) April 25, 2019
Nike’s Digital Business Strategy
From their humble beginnings, Nike Inc has grown into the world’s largest sneaker company. Today, Nike has retail outlets and distribution in over 170 countries. And, as a testament to its marketing reach, few can compete with the company’s brand recognition.
Nike has mastered emotive marketing…
— Sam The Challenger (@MohauSam) March 22, 2019
The application with the U.S Patent and Trademark office comes as Nike continues to develop its digital business model. At the heart of their strategy is the idea of connecting directly with customers.
The proposal for an e-com marketplace, fuelled by their native cryptocurrency, will not only solidify association with the brand but also further tap the potential of digital sales. Especially regarding purchases via mobile phone. Andy Campion, Chief Financial Officer at Nike, said:
“Digital sales surged a combined 41%, driven by mobile orders. In fact, at a pace far outpacing the retail industry average. Nike’s mobile demand has exceeded more than half of its e-commerce sales.”
The Customization Trend
Nike’s move to utilize blockchain technology will ensure it stays ahead of the competition. But growing sales is more than having a slick mobile-friendly platform. In the present, it’s also about knowing your customers and customizing to their needs. Which is possible with blockchain data, even on a global scale.
“If you take a look at trends in consumer and retailer spaces right now, there’s an underlying cultural demand for custom consumer products. This is only set to rise as technology makes it easier for retailers to tailor products around their clients.”
The Importance of Data
Nike’s flagship store on New York’s Fifth Avenue already caters to this trend. Here, it’s possible to customize clothing and footwear to make them as unique as the wearer. The store also features a level dedicated to localized demand. Items stocked on this floor come from data compiled on the top-sellers in New York and online sales.
But replicating this setup online will be challenging. However, the key to achieving this lies in having quality data. For that reason, the utilization of a blockchain system makes sense. Capturing data at every stage ensures accurate qualitative analysis, which in turn will provide better customer modeling capabilities.
With that in mind, by embracing blockchain technology, Nike has set itself apart from the rest of the pack. For that reason, it’s likely that their success will continue long into the future.