NIKE sidesteps retailers, taking its shoes directly to the consumer
15 Jun

NIKE sidesteps retailers, taking its shoes directly to the consumer

NIKE, Inc. (NYSE: NKE) today introduced the Consumer Direct Offense, a new company alignment that allows Nike to better serve the consumer personally, at scale. Leveraging the power of digital, Nike will drive growth—by accelerating innovation and product creation, moving even closer to the consumer through Key Cities, and deepening one-to-one connections.“Through the Consumer Direct Offense, we’re getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever.”Tweet this“The future of sport will be decided by the company that obsesses the needs of the evolving consumer,” said Mark Parker, NIKE, Inc. Chairman, President, and CEO. “Through the Consumer Direct Offense, we’re getting even more aggressive in the digital marketplace, targeting key markets and delivering product faster than ever.”

Source: NIKE, Inc. Announces New Consumer Direct Offense: A Faster Pipeline to Serve Consumers Personally, At Scale | Business Wire

 

For some time, the team here at Tematica Research has been writing about retail-mageddon, even before there was retail-mageddon.  We coined it the ‘death of the mall’, but it’s essentially been the same thing, as the May Retail Sales report showed yesterday, Nonstore sales are thriving while brick and mortar stores, especially department stores, are bleeding out.

So the issue isn’t so much that the consumer has stopped shopping, it’s that they aren’t getting off their coach to do it. Instead, shoppers are turning to Amazon, Zappos and the like to deliver everything from toilet paper, shoes and underwear directly to your doorstep. Nike, isn’t going to sit back at watch anymore.

This press release from Nike about the launch of the “Consumer Direct Offense” reflects the need to engage directly with the consumer, rather than rely on likes of Foot Locker (FL) and Dick’s Sports Goods (DKS) to put the latest Air Jordan’s on shopper’s feet.  As the statement from Nike mentioned:

The Consumer Direct Offense is fueled by Nike’s Triple Double strategy: 2X Innovation, 2X Speed and 2X Direct connections with consumers

As we see it, Nike is riding the tailwinds of our Connected Society investment theme, while using Disruptive Technology to differentiate itself and deliver Affordable Luxuries directly to consumers.  That’s a thematic triple-play folks.

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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