See how Nike's "Traditional enterprise" uses technology to reshape its business
When it comes to Nike, what do you think first? Basketball? Shoes? or Jordan?
If you're reacting to this, you really need to know the company again.
Just the end of the 2012 can be called Nike's motion digitization, its digital movement platform Nike ushered in a full-scale outbreak. In a short span of 1 years, a variety of heavyweight products have come out successively, the number of registered users of the Nike online community has increased rapidly from 5 million at the beginning of the year to more than 10 million of the scale.
Nike's earnings showed that in the 1th quarter of 2013 (that is, the 3rd quarter of 2012), Nike's revenues in North America amounted to $2.7 billion trillion, up 23% from a year earlier, a figure much higher than the average growth rate in the past few years (15% in 2011), Nike is becoming a new engine for boosting the company's performance.
Today's Nike is no longer a traditional sportswear company, which is combining sports with the internet to build a digital movement kingdom.
Origin: Running + music
There is no doubt that Nike is a sporting goods industry in the digital revolution, but its birth is not based on such a great vision, Nike can develop to today, how much some of the lucky means.
Nike's predecessor is actually nike+ipod, from this name can know, Nike's original intention is to combine sports and music.
As we all know, running is a very boring sport, it takes a lot of willpower to persist, so many people are discouraged by this sport. For Nike, such fear is a hindrance to the sale of its running products, so it has to do is try to make the running thing interesting and music happens to do that.
May 2006, Nike and Apple in New York jointly released the Nike+ipod Sports series components. According to Nike officials, Nike+ipod was introduced because Nike engineers discovered that almost all students were using ipods on campus near the company's headquarters, and Nike CEO Parker, who had a personal relationship with Steve Jobs, had the idea of combining Nike's products with ipods. For Apple, listening to music while running is also an excellent application scenario. In this way, both sides hit, two of their respective industries The coolest company came together.
However, this is only the second half of the story, many people do not know, in fact, early in the 2002 before the cooperation with Apple, Nike has cooperated with Philips launched the PSA series of sports MP3 products, but because the market response is flat, the cooperation between the two sides quickly went nowhere.
From the PSA series to Nike+ipod, Nike's overall idea is to combine running and music together.
But while it's not uncommon to listen to music while running, users can do it with other branded products, and Nike needs a "gimmick" to tie its running shoes tightly to Apple's products. Thus, "data" became the link between the two.
The Nike+ipod component allows users to see their own pace, distance, and other running data in real time by adding a sensor to the shoe and installing a receiver on the ipod.
Nike's running shoes, combined with the popularity of America's ipod, have been a great success. 2010, Nike has disclosed the sports category product sales, in which the running product income is as high as 2.8 billion dollars, in contrast, Nike's prestigious basketball products are only 2.1 billion dollars, can achieve such a result, Nike work.
Correction: Motion Digitization
Although data plays an important role in nike+ipod, it is not the core value of the product at the beginning of its development. However, with the rapid changes in the market environment, the importance of data began to highlight, Nike is also constantly correcting their own ideas--nike+ gradually from a positioning of music products began to a flagship movement of the digital function of the product transformation.
Nike+ipod released 1 years later, the first generation of the iphone turned out, with the rise of smartphones, a group of Nike inspired by the use of sports have sprung up, including Runkeeper and Endomondo and other leaders soon get tens of thousands of dollars of wind, So far, tens of millions of users have been brought together.
Nike has found that in the battle against Adidas, a group of eyeing internet start-ups have quietly surrounded themselves and their old rivals.
If a company like Runkeeper is comfortable with apps only, then maybe Nike doesn't have to be overly nervous, but as the size of the smartphone screens grows and the portability performance gets worse, the startups start rolling out their "hardware" devices. For example, Endomondo not only with Fitbit and other companies to launch portable devices, but also to create their own sports apparel brand, directly with Nike Rob business.
Of course, in terms of brand strength and product design capabilities, these Internet companies are still unable to compete with Nike at this stage, but Nike has felt their potential threat.
2010, Nike set up an independent digital sports department (Digital Sport). Huang, director of communications at Nike Greater China, told business value that the digital sports department was at the same level as Nike's research, marketing and other departments, and was in a high position in the Nike Global organization framework, before Nike Project operations are done primarily by the digital marketing team, which is responsible for running under the Nike Marketing department. Such an architectural adjustment conveys a clear message that movement digitization has officially become Nike's strategic development direction.
On the other side, after 2004, the rise of social media such as Facebook and Twitter is becoming an integral part of everyday life for teenagers, and a new generation of young people growing up with the internet has become accustomed to digital lifestyles.
"Nike's main consumers are teenagers, and we want sports to always be in their life form, but if there is no Nike, then the movement will become increasingly disconnected from the lives of today's teens." "When asked about Nike's significance for Nike, Huang said.
Nike's timely appearance helped Nike find its place in the internet era.
(Responsible editor: Schpeppen)