Nike has continued to set precedents in a busy and crowded athletic apparel and footwear market where the design, performance, digital experience, and, of course, band identity of the products influence choices the consumer makes. The proposed product is more a service than a product, additionally this is a continuance of the company’s current platform “Nike By You”, called “Nike 2 You”. This platform is a customization platform where consumers can personalize a much broader set of products, choose a wider variety of materials to utilize, and feature more in-depth options for the customization experience, all enhancing the customer’s digital experience. From a purely strategical standpoint, the new platform is not just a mere shopping feature, it is a brick wall of difference that stands Nike apart from its competitors making the direct-to-consumer experience much better.
The market research that has be completed thus far supports the objectives of the company at the preliminary level. Brand strength, direct connections with consumers, and innovation are all aspects Nike showcases publicly (Nike, Inc., 2024). The updated, complex customization platform we are offering fully supports these objectives by making the level of interaction more inclusive and in-depth by giving Nike direct feedback in real-time about the preferences of its consumers specifically. Additionally, this platform would assist Nike in standing out from its competitors that offer product assortments that are more traditional and standard. However, strategy is not the same asdata-driven proof. As of now, the research does not definitively prove that customization would increase sales, deliver feasible margins, or improve customer retention.
Current industry trends would include personalized shopping experiences, product choices that express individuality, as well as an uptick in growth within the digital commerce industry. The best part about utilizing a platform that already exists. The fact that it already exists. There is no need to lay a foundation that has already been poured. The core concepts are tried and true, they work, customers use the platform. To enhance customer experience, we should look at integrating recommendations that are obtained through data and research. Furthermore, providing virtual finished products that the consumers have created along with a manufacturing sector that already has SOP’s in place for customized apparel will only increase the new platforms attractiveness. Through finding a clear connection between reliable production and digital designs, Nike would be able to ascertain exactly which products are most sought out. This would only widen the reach the platform would have onto other parts of the company, like product releases and marketing. The possibilities are potentially endless.
There are both potential benefits and risks that come with these particular trends. With the creation and release of a successful customization platform, Nike could create a direct line to insights that could support planning of product launches, increase consumer engagement, and make the direct relationships with customers much stronger. At the same time, it could push consumers that are on the edge of which company to support Nike. However, successful research should look at all angles and possibilities. Therefore, if the platform has technical issues, this could cause a shopper to become frustrated. Furthermore, this could make the process of purchasing muchslower or potentially develop expectations of manufacturing that are simply not possible. A customized product would most often times require long lead times, especially with the more complex designs, also this could make forecasting difficult. Prior to Nike making a sure-footed promise to its shareholders and customers, there should be a lengthy, thorough test of the operations within the newly designed platform.
The marketing strategy for the platform should be positioned as such, an easy-to-use, upgraded platform that gives consumers a way to create products that are a clear reflection of their vision. To begin, Nike could start with a limited amount of products, to a set area and expand gradually based on the results of that group and/or area. For the launch, Nike could use their mobile app and websites. There should be clear demonstrations showing how the process works and actual examples of finished product designs. In order to measure the demand and fix any issues as they’re happening, Nike should use a phased launch method.
The proposed marketing strategy should align excellently with all legal, ethical, and industry standards. They should actually shape not only the product, but the way it is promoted. All claims regarding products should be tried, true, and accurate. It should be made clear that designing products will not improve comfort, performance, and/or fit unless that claim has evidence that affirms it. Prior to checkout, final prices, any restrictions, turnover rate, production times, and/or return terms should be clearly laid out. To ensure all consumers are actually readingthese terms Nike should require the terms to be accepted through the use of a checkbox that must be clicked by the consumer. Any data the platform saves should be protected and have the proper consent if that data is to be used by the customer. The marketing team should also not relay any misleading claims such as a “completely unique product” as other individuals cancreate the same exact final product. Inclusive design and accessibility should be built into the firmware of the platform, so it is a necessary part not an optional addition.
The absolutely biggest limitation is that any and all available public research cannot reveal the internal economics of Nike. Therefore, I am unable to verify data regarding actual costs of developing the platform, return rates, profitability of existing customized products, or the increased costs of manufacturing for these products. Additionally, public trend reports often tend to describe consumer behavior in a broad manner rather than specific preferences of the companies target customers. Therefore, without the proper research, or ability to obtain that proper research, it is highly difficult to ascertain the price premium, best target segment, or feature set.
To reduce the number of unknowns, Nike should have concept testing completed using different customer segments and compare the data it gets. A test run of the platform should track the average order value, time to complete a design from start to purchase, conversion, performance of delivery, returns, and, of course, customer satisfaction. So, with all this research in mind, my preliminary conclusion is that the idea does fit Nike’s differentiation and engagement objectives, however, the business would depend on the probability of a perfect balance between personalization and manufacturing efficiency.
References
NIKE, Inc. (2024). Annual report. Nike Investor Relations. https://investors.nike.com/
Nike. (2024). Nike By You. https://www.nike.com/nike-by-you
Belk, R. W. (2013). Extended self in a digital world. Journal of Consumer Research, 40(3), 477-500.
Kozinets, R. V. (2002). Can consumers escape the market? Emancipatory consumer research and the network of consumption. Academy of Management Review, 27(1), 83-110.
Kim, J., & Lee, Y. (2014). The effects of human-centered design on consumer satisfaction and loyalty. Journal of Business Research, 67(10), 2231-2238.
Norman, D. A. (2005). Emotional design: Why we love (or hate) everyday things. Basic Books.
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