what market research methods do nike use

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What Type Of Research Does Nike Use?

The purpose of Nike using market research is to bring inspiration and innovation to every athlete’s. So Nike use market research too make sure they remain competitive( leading). and too find out customers needs and buying habits.

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How does Nike do market research?

Customers dictate new product designs and marketing strategies based on their shopping behavior and reviews. For instance, through using practices such as trend analysis, Nike can compare business data over a specified time and note any patterns, trends, or consistent results .

How does Nike use secondary research?

v Secondary Data: Nike can use this data to innovate their products and keeping tabs on their competitors and their products so that they can capture the competitor market too . Nike can find these information on newspapers, magazines, product catalogues.

What is the marketing research problem with which Nike is confronted with?

The marketing research problem facing Nike has lacked enough consumer feedback since if there was enough feedback from consumers Nike would be able to determine what the consumers really want instead of second-guessing.

What are the methods used in market research?

While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation, and field trials .

What strategies does Nike use?

Nike relies heavily on advertisements to promote their products , especially those featuring high-profile athletes and celebrities. Additionally, Nike makes use of sales promotion strategies like discount codes to entice potential customers to buy their products.

What marketing concept does Nike use?

Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. It uses separate campaign or strategy to cap the market potential of the different segments. Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses.

What is quantitative research method?

Definition. Quantitative methods emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, and surveys, or by manipulating pre-existing statistical data using computational techniques.

How is secondary research used?

Secondary research is usually the starting point of systematic investigation because it provides the researcher with a background of existing research efforts while identifying knowledge gaps to be filled. This type of research is typically used in science and education.

What is the meaning of qualitative research?

Qualitative research is a process of naturalistic inquiry that seeks an in-depth understanding of social phenomena within their natural setting . It focuses on the “why” rather than the “what” of social phenomena and relies on the direct experiences of human beings as meaning-making agents in their every day lives.

What makes Nike so successful?

Every brand needs what marketer’s call “noticing power.” Nike is successful because they have their iconic catchphrase and celebrity endorsements . This power has the ability to grab people’s attention, make the product stand out, and rise above the competition.

What is Nike’s biggest problem?

Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.

What problem is Nike solving?

Nike is deploying technology to ensure its customers come away with the right sneaker fit, the first and every time.

What are the 4 types of marketing research?

Four common types of market research techniques include surveys, interviews, focus groups, and customer observation .

What is the best type of marketing research?

Face-to-face Interviews This approach is perhaps the most effective source of data for professional services firms. Face-to-face interviews, however, do come with a couple of important limitations. First, they are the most expensive interviews to conduct.

How is quantitative research used in marketing?

Quantitative Market Research is a technique to ask questions to the target audience in an organized manner using surveys, polls or questionnaires . Received responses can be analyzed to make well-thought decisions for improving products and services, that will in turn help increase respondent satisfaction levels.

What is Nike’s competitive advantage?

Nikes competitive strategy seems to maintain competitive due to their low cost structure . They have an extremely low cost to create ratio compared to how much they are actually selling all of their products for. Additionally, they sell their products to such a large target audience.

What does Nike stand for?

the Greek goddess of victory Definition of Nike : the Greek goddess of victory .

How does Nike measure performance?

It comprises multiple sustainability measures that assess the performance of individual factories based on a collection of issues, including greenhouse gas emissions, water, labor management, energy, health, and waste .

What is qualitative research example?

A good example of a qualitative research method would be unstructured interviews which generate qualitative data through the use of open questions. This allows the respondent to talk in some depth, choosing their own words. This helps the researcher develop a real sense of a person’s understanding of a situation.

Is it qualitative or quantitative research?

The differences between quantitative and qualitative research

Marketing guides, case studies, examples, and inspiration.

Nike’s Marketing Strategy Explained

Welcome to our explanation of Nike’s marketing strategy , one of the world’s most iconic sports and lifestyle brands. We’ll examine the layers of Nike’s approach, exploring how their blend of innovation, powerful branding, celebrity endorsements, and digital prowess has not only revolutionized the sports apparel industry but also created a blueprint for modern marketing. From their inspiring “Just Do It” slogan to their commitment to sustainability and inclusivity, Nike’s strategy offers invaluable insights into building a brand that resonates globally. 

Innovation as a Driving Force:

Nike’s marketing strategy is a testament to the power of innovation as a cornerstone of brand success. The company’s commitment to research and development has continuously set new benchmarks in sports apparel and footwear. This unyielding pursuit of technological advancement is not just about creating superior products, but it also serves as a critical component of their marketing narrative.

At the heart of Nike’s innovation strategy lies a deep understanding of athletes’ needs. This athlete-centric approach has led to groundbreaking products that revolutionize the way sports are played and experienced. For instance, the Air Max technology, which incorporates air cushioning in the soles, was not just an advancement in shoe comfort; it became a cultural icon. Similarly, Nike’s Dri-FIT technology, which offers moisture-wicking fabrics to keep athletes dry and comfortable, exemplifies how the brand integrates functionality with comfort.

However, it’s not just about the technology itself, but how Nike markets these innovations. The introduction of Flyknit technology, which uses high-strength fibers to create lightweight, formfitting shoes, was a game-changer in footwear. But Nike’s marketing brilliance shone through in how they presented Flyknit. They didn’t just sell a shoe; they sold a story of precision engineering, sustainability (reducing material waste), and peak performance. This narrative resonated deeply with environmentally conscious consumers and athletes alike, illustrating how Nike’s marketing strategy goes beyond selling products to selling experiences and values.

Nike’s approach to innovation in marketing extends beyond product features. It’s about weaving these advancements into the fabric of their brand story. Each technological breakthrough is not just a launch; it’s an event, an opportunity to engage with their audience, and reaffirm their position as pioneers in sports technology. This strategy not only fortifies their brand image but also fosters a loyal customer base that eagerly anticipates each new Nike innovation.

In essence, Nike’s marketing strategy , rooted in innovation, is a blend of scientific advancement and storytelling. It’s a powerful combination that keeps the brand at the forefront of the sports industry, continually setting the pace and defining the future of athletic wear.

Branding: Crafting a Powerful Narrative:

Nike’s branding strategy, particularly its narrative crafting, stands as a pillar of its marketing success. The brand’s iconic slogan, “Just Do It,” transcends the realm of advertising, embedding itself into the cultural lexicon. This simple yet powerful phrase encapsulates the essence of the Nike brand – determination, resilience, and the relentless pursuit of goals. But the impact of Nike’s branding goes far beyond a catchy slogan; it’s about the story they tell and the emotional connection they forge with their audience.

The genius of Nike’s branding lies in its ability to weave compelling stories that resonate with a diverse audience. Through their advertising campaigns, Nike doesn’t just promote products; they showcase stories of triumph, struggle, and perseverance. These narratives often feature not only elite athletes but also everyday people who are striving to overcome their personal challenges. This approach humanizes the brand, making it more relatable and inspirational to its global audience.

Nike’s storytelling is not confined to conventional mediums. Their campaigns often utilize a mix of traditional and digital platforms to create immersive experiences. For instance, their video advertisements are known for their high production value and emotional appeal, often going viral on social media. These stories are not just advertisements; they are conversation starters, motivational tools, and, at times, cultural statements.

A crucial aspect of Nike’s branding strategy is its inclusivity. They actively work to represent a variety of athletes from different backgrounds, genders, and abilities. This commitment to diversity not only broadens their appeal but also strengthens their brand identity as an inclusive, progressive company. It’s a strategy that not only sells products but also builds a loyal community around the brand.

In a world where consumers are bombarded with countless marketing messages, Nike’s branding stands out. Their approach to storytelling doesn’t just capture attention; it engages hearts and minds. This emotional engagement is what makes Nike’s branding so effective and enduring, solidifying their status as more than just a sports brand, but as a symbol of aspiration and inspiration.

Celebrity Endorsements and Sponsorships:

Nike’s marketing strategy has been significantly bolstered by its use of celebrity endorsements and sponsorships, a tactic that has proven immensely effective in increasing brand visibility and appeal. The company has meticulously selected high-profile athletes who not only excel in their respective sports but also embody the brand’s values of determination, excellence, and innovation. These partnerships are not mere business transactions; they are strategic alignments that enhance Nike’s brand narrative.

The impact of these endorsements is exemplified by Nike’s long-standing relationship with Michael Jordan. This partnership did more than just sell sneakers; it revolutionized the sports marketing industry. The Air Jordan brand, stemming from this collaboration, became a cultural phenomenon, intertwining basketball, fashion, and personal style. It demonstrated how an athlete’s persona could elevate a brand’s status and connect with consumers on a profound level.

Similarly, Nike’s association with Serena Williams extends beyond traditional sports endorsements. Williams, a powerhouse in tennis and a symbol of strength and resilience, aligns perfectly with Nike’s brand ethos. Through this partnership, Nike doesn’t just showcase its products; it champions diversity, empowerment, and the breaking of barriers, which resonates powerfully with audiences worldwide.

Nike also strategically partners with sports teams and events to maximize its brand exposure. By sponsoring teams in major leagues and high-profile sporting events, Nike ensures a consistent presence in the public eye. These sponsorships are carefully chosen to reflect Nike’s image as a top-tier sports brand and to maintain relevance in various sports disciplines.

These endorsements and sponsorships form a vital part of Nike’s marketing strategy, serving as more than just promotional tools. They embody the brand’s values, tell its story, and build emotional connections with consumers. By aligning with athletes and teams that mirror their brand ethos, Nike has successfully created a powerful and relatable brand identity. This approach has not only solidified Nike’s position in the sports industry but has also set a benchmark for sports marketing globally.

Digital Marketing and Social Media Presence:

Nike’s digital marketing and social media strategy is a cornerstone of its overall marketing approach, showcasing a masterful blend of innovation and engagement. The brand has adeptly navigated the digital landscape, leveraging various online platforms to strengthen its connection with consumers. This strategy is multifaceted, encompassing social media presence, mobile apps, and a strong online sales platform.

Social media is a critical element of Nike’s digital strategy. The brand effectively uses platforms like Instagram, Twitter, and Facebook not just to promote products, but to tell stories, inspire athletes, and engage with its audience. These platforms serve as a canvas for Nike’s creative campaigns, allowing them to reach a vast audience with targeted, compelling content. Nike’s social media feeds are a mix of product announcements, athlete stories, motivational content, and user-generated material, creating an engaging and diverse online presence.

Additionally, Nike has harnessed the power of mobile technology through apps like Nike Training Club and Nike Run Club. These apps offer more than just product promotion; they provide value to the users in the form of training programs, tracking tools, and community engagement features. This approach turns a simple app into a daily part of consumers’ lives, deepening their connection to the Nike brand.

The brand’s online sales strategy is another vital component. Nike has developed a seamless e-commerce experience, making it easy for consumers to browse, select, and purchase products from the comfort of their homes. This strategy has been particularly effective in catering to the modern consumer’s preference for online shopping, further solidified by the global shift towards digital platforms in the wake of the COVID-19 pandemic.

In essence, Nike’s digital marketing and social media strategy is not just about selling products; it’s about creating an immersive brand experience. By effectively utilizing digital platforms, Nike has managed to stay relevant and engaging in an ever-evolving digital world. This strategy has not only helped in maintaining a strong brand presence but has also played a crucial role in driving sales and fostering a loyal customer base.

Emphasis on Customer Experience and Community Building:

Nike’s emphasis on customer experience and community building is a key aspect of its marketing strategy, reflecting the brand’s understanding that today’s consumers seek more than just products – they crave experiences and a sense of belonging. This focus extends across both digital and physical realms, aiming to create a cohesive and engaging brand experience for every customer.

In the digital space, Nike excels at creating an online community that goes beyond mere transactions. Its website and mobile apps are designed to be more than just shopping platforms; they serve as hubs for athletes and fitness enthusiasts. Features like personalized training plans, activity tracking, and community challenges on apps like Nike Training Club and Nike Run Club encourage regular interaction, fostering a sense of community among users. This approach not only keeps customers engaged with the brand but also integrates Nike into their daily lives.

In the physical world, Nike’s retail stores are designed to offer unique experiences. They are more than just shops; they are spaces where customers can interact with the brand on a deeper level. From interactive product displays to personalized services like expert fittings and customizations, these stores provide a hands-on experience that online shopping cannot replicate. Additionally, Nike often hosts events, product launches, and athlete meet-and-greets in their stores, further strengthening the community feel.

Furthermore, Nike’s community initiatives extend to broader, more inclusive campaigns. Programs like Nike Run Clubs and sports camps not only promote health and fitness but also bring people together, reinforcing the brand’s commitment to fostering a strong, inclusive community. These initiatives resonate particularly well with a customer base that values social connection and shared experiences.

Nike’s focus on customer experience and community building is a testament to its understanding of modern consumer desires. By offering engaging experiences and fostering a sense of community, Nike doesn’t just sell products; it builds lasting relationships with its customers. This strategy not only enhances brand loyalty but also solidifies Nike’s position as a lifestyle brand, deeply integrated into the lives of its consumers.

Global Reach with Localized Strategies:

Nike’s global reach is a testament to its adeptness in tailoring marketing strategies to diverse markets. While maintaining a cohesive global brand image, Nike recognizes the importance of localizing its approach to resonate with different cultures and consumer preferences around the world. This nuanced understanding of global and local dynamics is a crucial element of their marketing success.

In various countries, Nike adjusts its marketing campaigns to reflect local cultures, sports preferences, and consumer behaviors. For example, in soccer-dominated regions like Europe and South America, Nike focuses heavily on football-related products and sponsorships. This localization strategy extends to advertising, where local athletes and cultural references are often featured, creating a more relatable and authentic connection with the audience.

Nike also demonstrates cultural sensitivity in its global marketing approach. The brand is careful to respect and celebrate cultural differences, which is evident in its product lines and marketing campaigns that cater to local festivals, traditions, and lifestyles. For instance, special edition products for events like the Chinese New Year or local sports tournaments showcase Nike’s commitment to embracing and honoring diverse cultures.

Another aspect of Nike’s localized strategy is its response to regional market trends and consumer needs. In some markets, Nike places more emphasis on certain product lines based on local popularity. This agility in adapting to local preferences not only boosts sales but also enhances the brand’s relevance and appeal in different regions.

This global yet localized strategy has allowed Nike to maintain a strong presence in various markets worldwide. By understanding and embracing the uniqueness of each market, Nike successfully navigates the complex landscape of global marketing. This approach not only ensures the brand’s widespread appeal but also fosters a deeper connection with consumers across different cultures. As a result, Nike’s marketing strategy is not just about selling products globally; it’s about creating a globally resonant, yet locally relevant brand.

Sustainability and Social Responsibility:

Nike’s marketing strategy has evolved to include a strong focus on sustainability and social responsibility, recognizing these as crucial aspects of modern branding. This shift reflects an understanding that today’s consumers value brands that are not only innovative and trendy but also socially and environmentally conscious. Nike’s integration of these values into its marketing strategy is a forward-thinking move that resonates with a global audience increasingly concerned about these issues.

A significant component of Nike’s sustainable approach is the development and promotion of environmentally friendly products. Initiatives like using recycled materials in their products and innovating in sustainable manufacturing processes are not just business practices; they’re integral parts of Nike’s marketing narrative. This commitment to sustainability is highlighted in their campaigns, reinforcing the brand’s image as a responsible and forward-thinking leader in the sports industry.

In addition to environmental sustainability, Nike focuses on social responsibility in its marketing strategy. This includes efforts to promote diversity, inclusion, and fair labor practices. Campaigns that celebrate diversity in sports and advocate for social issues resonate with consumers who seek brands that align with their values. By addressing these societal concerns and taking a stand, Nike builds a deeper, more meaningful connection with its customer base.

Nike’s sustainability and social responsibility efforts are also reflected in their community initiatives. Programs aimed at promoting sports and healthy lifestyles in underprivileged communities underscore the brand’s commitment to making a positive societal impact. These initiatives are not only beneficial to the communities they serve but also enhance Nike’s brand reputation, strengthening customer loyalty.

This focus on sustainability and social responsibility has become an integral part of Nike’s marketing strategy, aligning the brand with the values of a modern, conscientious consumer base. By actively promoting these values, Nike doesn’t just sell products; it positions itself as a brand that cares about its impact on the world. This approach has proven successful, enhancing Nike’s brand image and appeal in a competitive market where consumers increasingly prioritize brands that are responsible and ethical.

Nike’s Marketing Strategy in Summary

• Innovation Focus: Nike prioritizes research and development to create technologically advanced and innovative products.
• Powerful Branding: Utilizes compelling storytelling and the iconic “Just Do It” slogan to forge a strong emotional connection with consumers.
• Celebrity Endorsements: Partners with high-profile athletes and teams to enhance brand visibility and appeal, aligning with personalities that embody Nike’s values.
• Digital Marketing Mastery: Effectively uses social media, mobile apps, and a robust online sales platform to engage with the digital-savvy consumer.
• Customer Experience Emphasis: Prioritizes creating engaging customer experiences both online and in physical stores, fostering a sense of community among users.
• Global with Local Strategies: Tailors marketing campaigns to different global markets, respecting cultural nuances and consumer preferences.
• Sustainability and Responsibility: Integrates sustainability in products and operations, and engages in social responsibility initiatives, aligning with contemporary consumer values.
• Community Engagement: Initiates programs to promote sports and health in various communities, strengthening the brand’s societal impact and appeal.
• Inclusive and Diverse Representation: Focuses on diversity and inclusion in its marketing, representing various demographics and lifestyles.
• Consistent Evolution and Adaptation: Continuously evolves its marketing strategies to stay relevant and appealing in the fast-changing global market.

Nike's Situation Analysis: Primary and Secondary Research

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Strategic Analysis Hub

Market analysis of nike.

Nike is a footwear and apparel American multinational company. Phil Knight and Bill Bowerman founded the sportswear company in 1964. The sportswear brand has established a network of approximately 1045 stores in various countries across the globe. Today, we’ll discuss the market analysis of Nike; it focuses on goals and objectives, market landscape in terms of size and traffic, competitors analysis, target audience demographic, customers needs and demands, and SWOT analysis.

Let’s discuss the market analysis of Nike; some of the main elements and components of Nike’s market analysis are as follows;

Goals and Objectives of Nike

The goals and objectives of Nike are to establish and maintain a strong brand position in the sportswear industry by focusing on the following areas;

• Market expansion
• Environmental Sustainability
• Creativity and innovation

The focus of the sportswear brand is to develop the most advanced and technologically sophisticated apparel and footwear to promote a healthy and active lifestyle, limited injuries, and improved performance. Nike is putting a great emphasis on improving its marketing strategies, conducting research and development, and combining the brand culture with the local marketing effort to exploit market opportunities. They could be like expanding Nike’s retail business operations in China and other Asian countries.

However, the objective of Nike is to decrease the lead time through marketing strategies like direct shipping to reduce the product delivery time. It focuses on improving the order flow processes at the distribution centers to achieve efficiency and customer satisfaction levels. The sportswear brand has made a strong commitment to environmental sustainability by decreasing the plastic consumption rate and building more environmentally friendly products.

Market Landscape of Nike

According to an estimate, the market size and market capital of the sportswear brand Nike will be roundabout 123.42 billion USD by the end of 2024. The sportswear brand ranks as the world’s 132nd most valuable brand. The company has established a network of approximately 1045 retail chain sportswear stores in various countries across the globe.

However, the company has made an annual sale of roundabout 51.36 billion USD by 2024. High market and brand value would help the company handle any type of market disruption and earn the trust and confidence of the customer market.

Competitors of Nike

Some of the top competitors of Nike in the sportswear industry are as follows;

• New Balance
• Under Armour
• Steve Madden
• VF Corporation

Target Audience Demographic of Nike

The target audience demographic details of the sportswear brand Nike are as follows;

• Age: 18 to 65 years old
• Gender: men and women
• Income: higher and financially well-off
• Employment: stable income
• Education Level: Brand-conscious and fitness aware
• Social Media Activity: higher and more proactive

The demographic details of Nike show that the company’s target audience in its marketing campaigns is both men and women. They belong to various age groups and they have a great interest in health and fitness activities. However, they want to express themselves creatively by wearing sports apparel and footwear of the premium brand with unique and innovative designs and styles.

Nike Customer’s Needs and Preferences

The needs and demands of Nike’s customer market and the target audience are variable depending on the individual customer preferences and needs. Usually, the target audience and the customer market of Nike have a great interest in sports apparel, footwear, and sports accessories. They engage in health and fitness activities and they want to wear clothes and shoes that are durable and have premium quality. Needs awareness would help the company to amplify its customer market reach, network, and sales.

SWOT Analysis of Nike

Some of the main strengths of Nike are as follows;

• Strong brand awareness and brand value in the sportswear and apparel industry
• Have a very large database of loyal customers
• Strong commitment to the environmental sustainability initiative by developing sustainable material
• Collaborating with the world’s leading celebrities and influencers
• Achieving the low cost of production and manufacturing to maintain its profitability

Let’s discuss the main weaknesses of Nike are as follows;

• Poor working conditions of laborers and employees in the production facilities of Nike
• Strong control of supermarkets and retailers over the sale of Nike’s products
• Limited diversification of sports product portfolio
• Highly expensive products and goods of the sportswear brand

Some of the main available opportunities to Nike are as follows;

• Launching innovative and creative sports product designs by investing in the R&D
• Expanding its business market into new regions and countries across the globe
• Integrating with other sportswear brand for the development of unique products and goods
• Employing advanced technological tools and equipment to amplify its network

Let’s discuss the potential threats of Nike are as follows;

• Presence of counterfeit products and goods and they’re negatively impacting the company’s reputation
• Tough competition in the sportswear industry
• Currency exchange rate differences of various countries while procuring products and goods

Conclusion: Nike Market Analysis | Market Analysis of Nike

After an in-depth study of the market analysis of Nike; we have realized that Nike is the world’s leading retail chain sportswear brand. If you are learning about the Nike market analysis; then you should keep in mind the abovementioned goals and objectives, market landscape in terms of size and traffic, competitors analysis, target audience demographic, customers needs and demands, and SWOT analysis.

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Just Do It: Analysis of Nike’s Marketing Strategies and Growth Recommendations

• Catherine Yan
• Christopher Brown
• Anne Greenleaf

Nike is a global leader in the athleticwear industry, selling products for all ages, genders, and sizes. The company was founded in 1964 by runner and businessman Phil Knight and his track and field coach, Bill Bowerman, with the goal of creating the perfect running shoe. Since then, Nike has established the iconic Swoosh and “Just Do It” slogan globally.  But how has Nike become so renowned, and how have marketing strategies given them an edge over their competitors? And is there anything Nike can do to grow further? The paper investigates Nike’s target consumers, their direct-to-consumer operations, their recent success in e-commerce due to the COVID-19 pandemic, Nike’s social media strategies, and consumers’ reasons to support the brand, ultimately understanding and analyzing the marketing strategies that Nike has implemented and their effectiveness. A key component of Nike’s marketing strategy is understanding their consumers: who they are, what they want, and how to best appeal to them. This has fostered Nike’s direct-to-consumer business (which has increasingly become digital in the role of e-commerce), their large social media presence (which increases their brand engagement and awareness), design innovation, strides in diversity, and more. In addition, the paper recommends that for Nike to boost growth, as Nike shifts their focus to e-commerce, they should focus particularly on emerging markets, which are growing markets that often grow faster than other markets. In addition, Nike should collaborate with more brands and personalities and release more styles to help them grow in the future.

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How Nike's Data-Focused Strategy Has Led to Its Success

There isn't much sportswear giant Nike does not know about its customers. When Nike app users walk into its flagship store in New York City, the company knows who they are, what sports they are into, what sizes they wear, and what colors they prefer. All this information is crucial to a brand that wants to deliver personalized customer experiences at every turn - be they digital experiences, in-store experiences, or both - and Nike is committed to doing so.

Like many brands, Nike uses its apps - including Nike Training Club, Nike SNEAKRS, and the Nike app - to collect customer data. This data can then be transformed into valuable customer insights and used to help the brand decide which designs to produce and what items to stock in which stores. It is also used to customize what each customer sees in their apps in order to increase engagement and personalize as much of the shopping experience as possible.

All these focus on data are representatives of a certain shift in Nike's business model over recent years. For decades, Nike has operated based on a retail-first model - where the majority of its revenue is generated via wholesale. This has not changed completely - wholesale still represents the bulk of the company's sales. However, the company's direct-to-consumer initiative, Nike Direct, contributed $10 billion in sales during 2018 - a figure that is projected to increase to $16 billion by 2021.

Nike's success with going direct to the consumer comes down to how the company is using data and analytics to deliver a better customer experience. The Nike app, for instance, provides users with access to the Nike+ rewards program, which offers personalized exclusives to members, early access to new products, priority access to events, and personalized workouts.

Then there are things like the Nike Training Club and Nike Run Club apps, which track workout and running statistics and provide users with audio guides during training sessions. The added value that these innovations bring to the customer experience deepens Nike's relationships with its customers and encourages them to buy directly from Nike.

Nike also utilizes this data to refine its physical retail location strategy. Heidi O'Neil, President of Nike Direct, explained that the brand uses analytics to understand where Nike members are concentrated. "It helps us pick our Nike-branded retail locations in places that can serve not just as stores but serve as hubs for our members and service centers," she said. "We also use data to select and curate the product in the stores. We'll know if a neighborhood or a market is really popular for running, training, or let's say sneaker culture. Then, of course, we use data to understand what's selling."

Nike has been able to carry out these changes in large scales due to a number of key acquisitions the company has made in recent times. In 2018, for instance, Nike acquired leading data analytics company Zodiac. Zodiac's technology allows Nike to crunch together data points from customers using Nike apps - as well as other connected devices such as Fitbits - to gain insight into customer habits and predict purchasing decisions. For example, if a customer usually replaces their running shoes every six months but it has been twelve months since their last purchase, Nike will know that it is time to reach out with a personalized offer and prompt that customer to resume their purchase cycle.

Nike also acquired Invertex - a 3D-scanning company that specializes in using automation technology to build consumer and medical devices. Invertex has since designed Nike Fit - a new scanning technology that uses a proprietary combination of computer vision, data science, machine learning, and recommendation algorithms to find customers' "perfect fit" for each Nike shoe style.

Accessible in the Nike app as well as select retail stores in the US, Nike Fit prompts users to use their smartphone camera to take a scan of their feet. The app then automatically provides a recommended size range for that customer. This sizing information is subsequently stored within that customer's Nike+ profile and used to suggest sizes when the customer shops for shoes both online and in-store. This helps remove one of the biggest friction points that come with buying a new pair of sneakers.

One of Nike's greatest strengths has always been that it does not wait for competitors to come along and disrupt its business. Rather, it is constantly overcoming itself - and its renewed efforts into its direct-to-consumer model are the latest example of this commitment. Nike is still winning with its products, but it is also looking to differentiating its brand based on service and superior customer experiences enabled via data and technology. With new features like Nike Fit, Nike is aiming to make it easier for customers to shop in stores, online, and in the Nike app, while simultaneously providing the brand with even more data to better personalize the customer experience in the future.

"What's important from a Nike shopping experience is that with machine learning and AI, we're able to have every experience at Nike being unique and personal," said O'Neil. "My wish for you one day is to feel that you have your very own personal store curated for you."

Cyclops helps brick-and-mortar retailers gain in-store data and turn them into insights. This will help them tailor their operations and marketing actions, evaluate the impact of their actions on traffic, and make changes accordingly. To learn more about how Cyclops can help you gain insights into your store, visit our website: https://dayta.ai.

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