Has Nike'S "New Retail" System Formed?

According to the world clothing shoes and hats net, annual

It's the carnival of consumers.

The final exam.

In terms of sports consumer goods, the Chinese market has chosen the most. International sporting goods giants, new professional sports goods and local brands are fighting here to raise the most intelligent and picky consumers in the world. Competition is fierce.

The 2017 double eleven, the world's top sports brand.

Handed in a brilliant report card: fifth of the total sales list, second only to suning.com, millet, glory and Haier, pushing the double eleven fashion headgear UNIQLO and its old rival Adidas.

According to official data released by Alibaba, Nike has become the clothing brand of double eleven established since 2009, the first sales breakthrough of 1 billion yuan.

Before the double eleven, Nike also began to mention "new retail". Now the question is whether Nike's "new retail" system has been formed after the hard win of double eleven?

Nike's new retail: personalization + consumer experience

In 2016, Ma Yun, the founder and chairman of Alibaba, first proposed the concept of new retail. Its core is the integration of online, offline and logistics.

On the eve of double eleven in 2017, Alibaba CEO Zhang Yong further explained the new retail: new retail refers to the reconstruction of people, goods and markets driven by big data.

In Nike, the most important aspect of new retail is the mode of communication with consumers.

"Today, we live in a world of demand linking," said Dennis Van Oossanen, vice president of Nike's Greater China retail department.

What resonates with consumers is the brand that will serve the way, rhythm and life they want.

In a fast developing market, we must take the initiative to change.

Nike always puts consumers in the most important position and rapidly improves their capabilities and adapt to changes.

Globally, we are building powerful digital platforms and integration capabilities of physical stores to provide consumers with faster, closer and more personalized services.

The two elements are personalized products and consumption experience.

Of course, it is not easy for any brand to do well these two items.

In the past two or three years, Nike has never had a rest.

The sports brand Under Armour, which also came from the United States, once became a nouveau riche, attracting the attention of the so-called middle class. Adidas, the old rival, has experienced a large increase in sales in recent years after experiencing the trough of previous years, and the financial statements are pretty good.

But Nike is strong in Greater China: in fiscal year 2017, Nike's annual revenue was $34 billion 400 million, an increase of 6% over the same period last year. The most stable performance is the Greater China region, with a total revenue of 4 billion 237 million US dollars in the fiscal year, up 17% over the same period last year.

By the end of September 2017, Nike released its first quarter fiscal year 2018 report showing that the single quarter sales in the Greater China region reached US $1 billion 108 million, and the effect of currency floating was 12%.

Image source: Tmall

Therefore, Nike has reason to believe that they have gone quite well in China.

When the first quarter of fiscal year 2018 was released, the industry clearly predicted that there would be a significant increase in the earnings of the second quarter based on double eleven.

The fact is that this time, double eleven, Nike did fight a prepared battle - not only a large number of product discounts basically hit 50 percent off, but also a huge amount of stock, just 3 million 400 thousand pairs of sports shoes.

So that it is suspected by the outside world that there is suspicion of "clear inventory".

However, official data from Tmall show that in fact, Nike is the most widely booked brand on Tmall during the pre-sale period.

At the product level, Nike has seen the personalized needs of consumers, especially young consumers. Many customized products for the Chinese market and the classic shoe models with Chinese elements are constantly being introduced. The idea of integrating products with internationalization and local elements has proved to be able to impress consumers.

Comparatively speaking, other international brands prefer to introduce the so-called international trend into the Chinese market, while the products of local brands still fail to achieve perfect integration in design.

At the same time, online and offline, Nike has some personality choices.

For example, the personal customization area in a physical store, Nike itself acknowledges that the equipment and staffing of hot stamping are all very small costs, and even the corresponding fees for customization may not be able to be returned to the original, but they must be done.

Online part of this pair of eleven launched a large number of couple shoes, but also close to young people's attempt.

And consumer experience, Nike's efforts, it is very important to explore with Tmall together.

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Image source: Nike

Cling to Tmall: common goal, new retail

For Nike, consumer experience is divided into online and offline, and the synergy between them.

That is the concept of "field" by Alibaba CEO Zhang Yong.

The consumer experience of a physical store is inseparable from the product, store location, shopping guide, try on and personalized customization, and online experience is closely related to the logic of the web page and the convenience of purchase.

Of course, logistics is also an important part of new retail.

Cooperation with Tmall is one of the most important places for Nike's consumer experience.

In 2012, Nike opened in Tmall's flagship store, which is a more convenient choice for consumers in Greater China than Nike's official website.

Tmall flagship store has realized Nike's uninterrupted service for customers 365 days x24 hours. It is a dialogue between Nike and nearly 11 million consumers.

2016 double eleven, Nike top eleven Tmall apparel category sales champion, however, more importantly is a year, and no major competitors can copy Nike's success.

In 2017, double eleven, Adidas was the eighth place in Tmall's sales list, and sales did not reach 1 billion. Besides Tmall, the German brand was also invested in the embrace of Jingdong.

Sports consumer goods ranked third of the local brand Anta, with a total sales of 670 million yuan.

Here is the difference in thinking. In the Greater China region, the official online channels of Nike are mainly Nike official website and Tmall.

Nike chose to concentrate resources and dig deeper into cooperation with Tmall. During the double eleven and Nike Tmall stores, the discount rate was large and the product categories were complete. After the discount, many products and local brands entered a pricing range, and Nike was obviously not worried about selling.

Obviously, Tmall has a natural look at this kind of "exclusive" cooperation.

This is like the birth of double eleven in 2009. Only 27 merchants did not refuse Alibaba's invitation to double eleven. Today, double eleven sales volume is as high as 168 billion 200 million yuan, and Alibaba naturally needs more benefits from these loyal partners.

The so-called "wealth" should not be forgotten.

On the eve of double eleven this year, two smart stores jointly operated by Nike and Tmall opened in Shanghai and Hangzhou, and conducted the digital test of orders and passenger flow. In November 8th,

At the same time, Nike's 50 Direct stores also catch up with this year's double eleven open online orders and offline delivery, which means that during the peak shopping period of double eleven, Nike can link up with 10 distribution centers through the store, and deploy and deliver the goods for the first time.

Image source: Tmall

According to the data from Tmall, the rate of destruction of the pre-sale is less than 2%. Therefore, Nike began to prepare logistics from the pre-sale period.

Bao Zun electric business is China's largest supplier of electronic business operators, and the market share is 25% of the market.

It is understood that Nike is the biggest customer of the company.

According to Bao Zun e-commerce, Nike attaches great importance to the consumer experience, all of the packaging materials are provided by Nike, and the double eleven package is a package of Shun Feng express.

At the same time, Nike will also put in the consumer goods, directly express clearly return address address, to facilitate the need for consumers to return, and this is not done by other stores.

Orders, goods and courier orders during the pre-sale period have been prepared and posted after the deposit has been paid. They can be shipped only after the payment is completed at eleven in the morning and 1 at the end of the morning.

Facts have proved that this double eleven Nike's consumer experience has been well done.

Random enquiries of consumers and couriers revealed that in the early morning of double eleven, the first packages received were fresh from Tmall supermarket and sports consumer goods from Nike flagship store.

"First of all, listen to what consumers say," Fan said.

This year's double eleven, we adjust and strengthen strategy, unified classification, inventory, brand marketing, after-sales service and supply chain.

In terms of products, it has launched a number of important products, such as Lebron XV ASHES, SF AF-1 and AIR JORDAN XI WIN LIKE "82", and products specifically designed for the Chinese market.

In addition, other products sold during the season are also listed in double eleven promotions.

At the same time, we strive to deliver goods to consumers through multiple channels.

Image source: Nike

The importance of online channels has enabled Nike to try to take care of personalized needs as far as possible. Meanwhile, Nike and Tmall have also tried more dimensions in their cooperation.

For example, consumers who are keen on JORDAN brands do not need to search for a needle in Tmall's Nike flagship store.

This summer, JORDAN brand independent Tmall flagship store opened.

2017 is the first time that the JORDAN brand has participated in the double eleven, many popular shoes such as AJ1 and AJ11 are sold on the second hand. Double eleven has more than two o'clock in the afternoon. Most of the flagship stores in JORDAN are sold out, and the sales of single store half day exceed the sales of all stores under any JORDAN line.

In the end, JORDAN flagship store has won the top eleven international brand official flagship stores.

New retail is Tmall and businesses have realized that the current consumers are totally different from the past. They want to personalize the beautiful products, want to buy instantly, want to buy through mobile devices, and want to shop simply.

In particular, sports brands attach great importance to the young consumer groups, personality is very important, convenient is very important.

"The goal of Nike is to always say yes to consumers," Fan said.

In the future, we will deepen our cooperation with Tmall to jointly innovate new retail outlets and provide exclusive service and experience to members and online consumers. "

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As for sales performance, a natural logic is that it can satisfy consumers and the performance will not be bad.

Image source: Nike

"Nurturing" the world market: young people +12 major cities

During the double eleven period, Ma Yun said in an exclusive interview with CCTV: "in fact, we do not make money in double eleven. We are looking at technological upgrading, organizational talent upgrading, logistics, payment, and technology upgrading of the entire platform."

In fact, every year eleven times, every time the sales figures are refreshed, the international brands are learning about the Chinese market.

2017 is the ninth year double eleven. The mainstream media is not hard to see the appeal of rational consumption. There will still be media questioning whether the sincerity of businessmen is enough.

However, the market has its own inevitability. The discount and discount offered by businessmen are considered to be worthwhile by consumers, and they are not worth buying.

Tmall did not force businesses to discount, or must pay a few discount, and no one forced consumers to buy, buy more.

In the case of Nike, the total sales of these 1 billion yuan with double eleven can reach 1 billion 500 million -20 billion yuan, or even more, according to the original price. The question is whether the original price can still have such a large sales volume? In the final analysis, this is a game between businessmen and consumers.

The profit margin of double eleven will be lower than usual, and even to some extent, as Ma Yun said, "no money", but Nike's total sales volume of 1 billion yuan, the total profit, reputation and influence, it is difficult to quantify.

Otherwise, the carnival will not last for nine years, and it will not be tested from 27 to now.

Therefore, for any international brand, conquering the Chinese market is enough to serve as a template for its world market.

For Nike, today's acquisition in the Chinese market is enough to "nurture" its native American market and world market.

"Although we often talk about consumer differences in different regions, there are many similarities," said fan Sheng, vice president of Nike's Greater China retail department.

Digital shopping is one of them. Consumers on both sides want higher value products quality and innovation, and at the same time want more convenient and better consumption experience.

Today, the US market still occupies 1/3 of the global sports consumer goods market. However, it is already a fairly saturated market. In the 2017 fiscal year, the total sales volume of Nike in the US market was 15 billion 200 million US dollars, an increase of only 3%.

Therefore, although the growth rate in the Greater China region reached 17% and the Western European market also increased by 11%, Nike's year-on-year growth in the whole fiscal year was 6%.

In the first quarter of fiscal year 2018, the North American market suffered its first decline for the 10 consecutive quarter, a year-on-year decline of 3%.

The problem before Nike is not simple. Can the high growth rate in the Greater China region maintain nearly 20%? And how can the relatively mature North American market tap the potential?

In recent years, the most important two part of Nike's global strategy is targeting young people and delineating 12 major cities in the future.

For the former, the global market is likely to learn from the experience of "new retail" in the Chinese market. The latter, however, has played an exemplary role in Shanghai and Beijing. It is very inspiring for Tokyo, Paris and Milan in the 12 major cities. As for New York and Losangeles, a key City in North America, it is also feasible to draw lessons from it, but Nike needs to think more.

Image source: Nike

For any sports brand, product pricing is still the fundamental way to survive.

As the largest sporting goods company in the world, Nike's brand value reaches US $21 billion, and its annual freight volume reaches 1 billion 300 million.

Lifeline is the product. These 1 billion 300 million products are Nike's display to the world. It is more conspicuous than any advertisement or celebrity endorsement.

In fact, the competitive environment is becoming more and more brutal, especially in the Chinese market. After all, the increasingly powerful sports purchasing power is a brand in the eyes of any brand. Now, Nike wants to keep its head firmly on top of the table. It needs to face more than Adidas, such as the lululemon, which is firmly occupied by yoga and other market segments. It also has more than the local sports brand, and also wants to take a share of the sports goods market from UNIQLO, GAP.

"New retail" may be the answer, but this answer obviously needs continuous improvement and upgrading.

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