Shanghai Nike 001: How Can We Narrow The Gap With Consumers?

Nike will never be low-key whether it is introducing new concepts or developing new technologies. In the past year, Nike's "Shanghai 001" concept store has become a major part of Nike's global innovation.

"Shanghai 001" is the first flagship store that Nike has set up in the world for two other technologies (another in New York).

According to Nike, by the end of 2018, the area of 3822 square meters of flagship store has been exposed to WeChat on 85 million occasions, with 30 thousand visitors per day (a net red card hit spot). "Core midfield" (a interactive game area and product experience area in a store), consumers can accomplish many challenges through infrared induction and test the performance of sports shoes. The number of customers tested every day is 4 thousand times, and the turnover is 1.6 times that of the target set before the opening.

However, in the view of the Accept&Proceed team (a creative institution in the United Kingdom and also a partner of Nike), in the current situation, the previously impossible revenue targets are too conservative - at least in the "Shanghai 001" store.

When the clock was back in 1996, Nike launched a plan called Nike city (Niketowns). But at that time, some of the practices of Nike brought a lot of negative comments, such as the use of anti-theft equipment and the traditional retail mode. Nike at that time was bent on becoming a pioneer of pop culture, but the "Nike city" finally ended in darkness. Today, the Nike team says it wants to continue this more adventurous game. "Shanghai 001" is to maximize the brand and personal connections through the user's mobile devices.

Accept&Proceed s founder David Johnston (David Johnston) forecasts the prospect of China's consumer market in the next 5 years. He said: "sales guidelines applicable to other stores will not work. "Shanghai 001" can respond to consumers' actual situation and constantly optimize the regulation. In addition, it has a major impact on Nike's current and future store space design and design.

Nike is still fighting for its own competitors for its supremacy in the world's first sports brand. In June 2018, Nike announced that its total revenue in the fourth quarter was $9 billion 800 million, an increase of 13%. This achievement is also partly attributed to the digital transformation between end-to-end in Nike. So, what efforts did Nike take to defend its retail hegemony?

First of all, Nike spares no effort to promote its own innovations, trends and products with great depth. A part of "Shanghai 001" was extended to the creativity of Nike at the 2016 Milan International Furniture Fair. At that time, Nike exhibited a series of joint indoor installations. The series was designed to reflect on "how to create new communication language, stimulate new design ideas and generate new problems that need to be solved by Nike". This includes the intelligent microclimate chair designed by Greg Lynn, which is made of composite carbon fiber and aluminum. The integrated sensor is used to calculate the body temperature and water diversion loss of the chair, and it can adjust the local temperature and prevent the cramp in a targeted manner.

The main design concept of "Shanghai 001" is liquidity. A large screen can be seen everywhere in the shop, with innovative designs on the front. The screen shows the scenes of these products being created. All these creative designs are completed by Nike's R & D laboratory.

Secondly, there are more display areas with independent themes, rather than cold and cold commodity shelves. In view of this, visitors can easily observe and study how people connect with Nike itself and other visitors when browsing in the store, browsing information and using mobile devices. "We feel that this place has both the attributes of museums and clubs and caters to different groups of people. Whether you are wandering around alone or playing together, you can find your favorite things and groups here. Shopping social networking is two. Lily Fletcher, chief planning officer of Accept&Proceed, said Lily Fletcher.

Last but not least, Nike provides various forms of customization services. "Based on the concept of consumer and brand connectivity, Nike is becoming more and more focused on the" consumer is the creator ", Fletcher said of the" expert studios "at the top of the store. In this sector, members of Nike + (Nike's app) can participate in the customization process of shoes in person after selecting shoes. As early as in 2000, Nike opened the "Nike ID" service (consumers can personalize their own products online), and now it is an upgraded version of "Nike ID" to collaborate directly with Nike's design team. This shows Nike's focus on innovation and is committed to showing the creativity of consumers and brands in the spotlight.

Entering the basement of the shop, the huge atrium has a core midfield equipped with digital driving and motion sensing. There are also some product shelves and digital training courses. In early 2019, this layer is expected to add several screen panels (maybe the screen wall can also be the screen floor). On these screens, you can see all kinds of data information on every shoe's feet. In addition, through the establishment of instant settlement area, Nike's all channel retail concept will also be displayed here. Nike version of "click pick up" allows consumers to click on app to click on a specific product, then to open the locker and try it on after the store. Consumers can also settle directly through online app. In many areas of the entire store, consumers can use app to settle accounts instantly, fully in line with Nike's rhythmic atmosphere.

Nike's personality customization not only refers to the product experience but also involves the store experience (including how to manage the store according to the consumer's consumption rhythm without the help of the staff), which is inseparable from data driven. In July 2018, Nike's first Nike Live landed in Losangeles, named Nike by Melrose. The concept store can calibrate commodity types and inventory through Nike's real-time localized business data. This is part of Nike's larger plan mentioned by Johnston, which extends the main line of the brand to the wider intelligent and dynamic information matrix.

Intelligent and dynamic information matrix is an integral part of the wider and faster development of the entire human world. In the future smart city and Internet of things environment, objects, equipment and real environment can achieve mutual communication. This can be much more important to the sports industry than any other industry, because such interactive, ubiquitous tracking information is essential for accelerating the development of "self quantification" in recent years (for example, using personal health or gene level data to analyze our competitive advantages).

With the development of biomechanics, intelligent equipment and motion analysis, brand players need to play the role of personal health housekeeper. It is far from enough to analyze the style preferences of consumers localization. They also need to help consumers achieve their personal health goals through a more intimate way. It is worth mentioning that Andemar (Under Armour) in 2016 developed and launched the Healthbox smart health suit, including smart bracelet, body fat balance and heart rate with three products, and all devices are connected to a mobile phone app. The smart suit was originally designed for athletes and later placed on store shelves, but its functionality may be reduced. The system can automatically identify the user after entering the andrem store and help store employees to recommend specific equipment according to the user's condition.

In today's intelligent information service in the environment of sports life, it is inevitable to remind people of the connections between Nike's "innovation home" and Nike's automatic lacing shoes "Hyperadapt". After the upper foot of the sneaker is raised, the heel lights will light up, and then you will feel your feet and activities, then adjust the placement immediately. Nike's style of advertising is all about Nike's description of the shoes. "It's like a robot. It's a new revolution of shoes" in the form of automatic lacing sports shoes. The price of the sneaker was very high at the first generation, and the selling price reached $720. However, in the spring of 2019, the new generation of "Hyperadapt" was coming to the market. The price was more close to the people in the early days, and it was reduced by nearly half to the selling price of $350.

"Nike has realized that there is a need to draw a clear line between product innovation and consumer experience," Johnston said. "There will be more elements in the store. When consumers enter the store, these elements will enable people to feel the virtual and reality better in some ways, and can also provide feedback for personal data. Six months later, we can play tricks on the screens in the shop.