What You Do Not Know Is The Essence Of Nike's Success In The Domestic Market.

Right now, Sports goods industry Obviously, the development has encountered bottlenecks. This bottleneck is obviously not only a channel defect of enterprises, but also changes in the overall consumer habits. After sports become habits, sports brands need to distinguish and accumulate users. According to Nike's experience, they use a way similar to O2O to socialize, and then guide consumers' consumption. This kind of thinking may not only apply to sports products.

After 2010, the domestic sporting goods market suffered a whole industry recession. The problem of inventory has plagued almost every company in the industry, and Nike is no exception.

However, although cleaning up inventory and channel adjustment has caused every enterprise to be battered, Nike is still free to push forward another important work, that is to promote its own digital sports platform Nike+.

2013 is the year when Nike's digitalization strategy took root in China. Nike began to vigorously promote its digital platform Nike+ in large and small offline activities. After nearly a year's efforts, Nike's digital platform has experienced explosive growth. The exclusive value of business value shows that as of October this year, the number of registrations in the Nike+ online community increased by 130% in the Greater China market, while the number of applications downloaded by Nike on the mobile side increased from 570 thousand last year to 2 million 580 thousand, an increase of 350%.

Nike is using the mobile Internet as a weapon to get online and offline, so that more partners can participate in sports activities in person. This is Nike's O2O.

　　 Changing sports and consumption habits

In the eyes of many domestic peers, Nike's implementation of the Internet and digital strategy is a thankless task, because these efforts can not directly promote Nike's sales, and Nike's Greater China Communications Director Huang Xiangyan also confesses to "commercial value" that Nike itself does not expect these efforts to directly boost sales growth.

Why does Nike have to do this? Answers to changes in people's consumption and exercise habits.

Over the past 20 years, the boundaries between sports brand and fashion brand in Chinese market are rather vague. Consumers buy sports brand products, not because they have good sports habits, buying a sportswear and buying a casual wear nature is no different, simply because of the impact of the prevailing environment, many people will be more inclined to buy sports brand products in the subtle.

With the end of the Beijing Olympic Games, the good days of sports brands in China have come to an end. The rise of national income leads to the breakdown of clothing demand of consumers. Sportswear is no longer a part of consumers' daily wear. The rising fast fashion brand quickly diverts the original customer groups belonging to sports brands.

This change in consumption habits has finally led to the imbalance between supply and demand in the sporting goods market, followed by a 3 year long recession in the whole industry.

However, this round of recession is not a bad thing. It will help the sports brands to select the real core sports consumers. Although the overall demand for sports products is on the decline, at the same time, in the second tier cities, more and more white-collar workers begin to pay attention to their health and begin to participate systematically in sports consciously.

The following examples may help you better understand the changes that are going on in the sporting goods market in China: the original sports brand has 10 million people, but there are only 1 million people who really have sports habits and sports needs. Today, due to market segmentation and other reasons, the consumption of sports brand has dropped to 5 million, but 2 million of them have good exercise habits.

Therefore, for sports brands, there are two challenges to be faced at the moment. One is how to serve the sports population with higher gold content. The two is how to expand the base of the core sports crowd. Nike chose to use the Internet as a weapon to meet these challenges.

　　 Make a circle, borrow the WeChat public number.

Nike has always been an innovative enterprise. In the past 30 years, it has been guiding the development of the whole industry at the technical level. Today, the company is no longer satisfied with selling a pair of sports shoes to consumers.

"In addition to providing products, what we most want to do now is to provide services. The so-called service is to make users' cognition of brand and sport more complete. Huang Xiangyan explained the meaning of Nike+ to "commercial value".

Over the past 3 years, Nike has launched a number of products to quantify user movement: in 2010, it launched the mobile phone application Nike+Running for running; in 2011, it launched a sports watch with GPS positioning function in cooperation with TomTom company. Last year, Nike even introduced the wearable device, the Sports Wristband Fuelband. In October this year, it further released the second generation product, Fuelband SE, which also marked Fuelband being included in Nike's regular product line. In the early November, Nike's daily activity record tailored to the M7 dynamic co processor built in iPhone 5s was also officially launched.

When the motion data in the real world is quantized to the virtual world, Nike can start to guide users to participate in sports more efficiently. Through the medal and incentive mechanism, Nike can make users' movements more systematic and regular, and users can understand their daily sports at a glance.

But it is not enough to do that. In the Chinese market, Nike wants to regain its lost territory and try to rekindle the enthusiasm of consumers. Nike hopes to achieve this goal through social networking.

Just as there are opinion leaders who can lead public opinion at the level of information dissemination, in the world of sports, there are also people in every social circle. Nike hopes to take these sports as the core and drive more people in the circle of friends to participate in sports.

"Double eleven" that day, resistance Ke Zhao WeChat launched a low profile public service account Nike+Run Club for runners. On the line only 10 days, the account of the service was run to the 16124 people who were interested in the account of the runners, and the running group function was built through the account. These users quickly created more than 1000 running WeChat groups.

In recent years, running has rapidly become popular among white-collar workers in China's first tier cities. All kinds of running organizations are also emerging one after another. Not only the major sports brands have established running clubs, but also some traditional enterprises.

But in addition to these organizations with corporate backgrounds, Nike hopes that more ordinary people can also participate in it. WeChat's group function is undoubtedly a good opportunity. In Nike's Nike+Run Club account, users can find their peripheral running organizations according to their location and find more like-minded people to run together.

In addition to running public accounts, it is reported that Nike is still planning public basketball service accounts.

For most people, running is a relatively independent sport, and it does not require many people to do it together. But basketball is different. In most cases, this is a multiplayer activity. For many fans, organizing small partners to play a game is a headache, because it is very difficult to get the right number. Nike's digital marketing team is discussing the use of WeChat's group functions to help users solve this problem.

Through social interaction to attract more users to participate, and then through data to form user stickiness, and then interact with data and social interaction, so that users can complete the precipitation on the Nike+ platform, this is the essence of Nike O2O.

　　 The real potential of Nike+ platform

There are at least 20 year old sports brands that are familiar to us both at home and abroad. But in the past few decades, no sports brand has ever really understood its consumers. Even though many companies entrust third party organizations to conduct various types of user surveys every year, the amount and information they can collect are very limited.

After a pair of running shoes are sold, they have nothing to do with the Brand Company. No one knows how users use these products after they buy them, whether they are for everyday wear or are they really used to run everyday. Even though it is possible to deduce whether a consumer has the habit of exercise through repeated purchase frequency, but what is his exercise habit, the brand still does not know.

But for Nike, through continuous efforts on Internet products, it is truly understanding user's exercise habits, including user's movement frequency, movement time, location information and so on. These data are of great value.

First of all, it can achieve more accurate advertising in the future. A large number of users must be the core sports population, and the demand for sports goods is also more vigorous. In fact, the product of Nike+Running now exists in disguised form. Users can mark their shoes after each run. When a pair of running shoes has run 300~500 kilometers, the functionality will be greatly reduced, that is, when it comes to buying new shoes.

Secondly, we can find out which regions are relatively concentrated from the geographic information of users. In the future, Nike can open this information to its agents, optimize the location of the agents' stores, and guide them to organize regular promotional activities in the areas where the sports people are concentrated.

Thirdly, user's motion data can help designers and product managers to design products that are more responsive to consumer needs. The product director of Nike running shoes, when interviewed by commercial value, said that they learned from Nike+ that a large number of users were running at night, so they would add more reflective materials on the product. Imagine that in the future, with Nike's further understanding of user's height and weight, and with the location information of user movement, Nike will be able to allocate its capacity more effectively and lay products in stores in different regions. In the future, the embarrassment of seeing a product in a shop but not suitable for its own size will be gone forever.

From a more macro perspective, one day, when the Nike+ user scale increases further, it can even help Nike predict the trend of the market. At present, the Nike+ community has registered 18 million users globally. Nike can actually understand changes in user movement through a certain mathematical model. For example, when the user is collected.