Consumers are continuing to turn to e-commerce offerings to shop rather than risking physical stores.
In recent years, Nike has been changing the way they operate. The brand has limited their department store partnerships and other wholesale outlet options and instead, has been concentrating their efforts on its direct to consumer offering as well as experiential store concepts such as their now infamous ‘House of Innovaiton’ concept. As well as this, the brand has invested in and launched ‘Nike Live’ smaller neighbourhood stores where customers can pick up their online orders. It is clear to see that Nike has embraced the ever changing consumer-behaviour.
Prior to the Covid-19 pandemic, Nike had set a goal of having its e-commerce sales contribute 30 per cent of its total revenue by 2023, having beaten that target already, the company is now on track to break 50 per cent of e-commerce contribution in the coming years.
John Donahoe is confident that the globally-recognised brand has made the correct decision to turn their focus to further digital offerings, stating: “The accelerated consumer shift toward digital is here to stay. Digital is fuelling how we create the future of retail. Nike’s digital transformation strategy is not easily replicated. Simply put, scale matters, and Nike leads.”
