Nike: Big Data Applications Affect R & D New Products And Marketing Strategies

stay

In the era of Nike, Nike is no longer just a traditional sports Brand Company. It builds its own online sports community, deeply and directly involved in the life of consumers, mastering their data and accurately grasping their needs.

Behind every new product or marketing strategy decision, unlike other sporting goods companies still rely on professional athletes, third party data research and other means to collect data, Nike's unique social sports platform Nike+ is becoming an important basis for Nike's new product design, marketing and other business decisions.

Let me start with 2 examples:

In October 22nd, 27 world top athletes including the two tennis Grand Slam champion Li Na and Olympic gold medalist Allison Felix gathered in New York to unveil the new spring and summer series of their Nike Women for Nike. This is also the first time that Nike has launched such a large-scale women's Sports Campaign on a global scale.

The main driving force behind the emphasis on female consumers and the growth of women's business is not only traditional data research or experience judgment, but Nike's discovery that its Nike+ Training Club application has been downloaded 16 million times, and 9 million of them are women.

The Nike+ Running application.

This is also Nike's research based on 65 million women in its digital community.

In September 26th, in Shanghai, Nike announced the launch of a new Zoom Air series running shoes. It also invited the 2012 Olympic Games London Olympic champion Mo Farah and Galen Rupp to share their experience of Nike running shoes.

Unlike previous demand points, Nike's main hit is "faster run", which has become the main selling point of its product.

This is due to the study of Nike+ data. Nike found that unlike the first phase of Chinese runners who concentrated more on 40 years old middle-aged people, they started running differently because of their health worries. On Nike's social networking network, more runners aged 19 or so, who formed their own young running groups to upload data themselves, could run faster and pursue speed as their main objective.

For Nike, through Nike+'s hardware, software and community platform, Nike can harvest a steady stream of user data every day. What can these data bring to Nike?

It is the figures uploaded by these runners that become an important basis behind Nike's business decisions such as product design, new product promotion, online and offline marketing, etc. it helps Nike find users and understand users through gathering information about user running, so as to develop marketing activities more accurately.

For example, through Nike+, Nike finds that most users run at night, so their R & D departments have added reflective materials when designing shoes and clothes, improving visibility and safety.

Also seeing the needs of runners for speed, Nike has added a new "Nike+ coach" function to the community this year. By tailored Nike coaches resources and top athletes' opinions, the exclusive running plan is customized according to the goals and abilities of each runner.

The latest data show that Nike+ now has about 20000000 registered users worldwide.

Although in Nike's earnings report, the effectiveness of a product is still not reflected, but for the running business that has always been the top revenue runner, "Nike+ is becoming a new engine to drive the company's growth."

Zhang Qing thinks.

In the first quarter of 2015, Nike reported that its revenue grew by 15% in the whole quarter to nearly $8 billion, while in China, its earnings grew by 20% after deducting the effect of exchange rate fluctuations.

Nike+ is undoubtedly a milestone in Nike's digital innovation.

In 2006, engineers at Nike headquarters found that almost everyone in University of Oregon campus used iPod.

After contacting with Apple Corp, Nike+iPod's plan hit the nail on the head.

This gives Nike the first taste of the sweetness of the digital community.

After several generations of upgrading, Nike+ supports a variety of system downloads. Through mobile phones, runners can get their own sports time, pace, heat consumption, route and other data.

The products that are now being extended through Nike+ are now involved in more sports through more forms of carrier, such as Nike+Trai n I ng and fuelband.

Technological innovation also promotes the application of Nike's new business model, that is, "user + data + service + terminal."

The current consensus in the industry is that behind the Nike+ is the application of big data, which is to understand users' needs better by analyzing user behavior.

Sports industry veteran believes that "the sale of smart shoes and clothes can not earn much money, but the data behind it has enormous imagination.

But how Nike can tap this treasure mine remains to be tested.

Although the business logic is not clear, it is surely one of the core competitiveness of Nike's future and competing products.

The significance of Nike+ to Nike lies in that it will completely change the communication mode between the company and users, pform the one-way voice of Nike in the past into the scenario of company and global users living in the same community.

This will undoubtedly greatly increase Nike's opportunity to understand consumers and enhance the user's viscosity.

Nike+ may help Nike find its target customers faster, changing from 1% of sports elite to 9% of ordinary sports to 90% of potential consumers, as in the field of running, to make a sport or category more sophisticated and boost sales.