How Adi and Nike Lead the Future of Retailing

In the fall of 2016, the world’s two largest sports equipment manufacturers – Nike and Adidas – have set up large multi-storey stores in Manhattan’s business district to provide a more immersive retail experience that is unmatched by department stores and sporting goods stores. Brand promotion effect. These stores feature tailored sportswear and sports shoes, sports counseling, and delivery on the same day.


Customers have higher expectations, said Heidi O Neill, Global Customer Marketing Director at Nike, in an interview at a new 55,000-square-foot store in SoHo. They are looking forward to experiencing a greater sense of participation here.


The new Soho store is Nike's second largest retail store on Manhattan Island. The first Nike store opened in Middletown south of Central Park. The third store is planned to open on the sleek Fifth Avenue, a total of seven floors, covering 69,214 square feet. Nike signed a store rental contract this month. At the same time, Adi opened a large store in the Soho district. This month will also open a 45,000-square-foot store on Fifth Avenue. Another small competitor, Under Armour, also plans to set off in New York with plans to open a flagship store on the site of the famous Swartz toy store.



How Nike Acts


Nike invests heavily in mobile integrated marketing. Consumers can make reservations for one-on-one services with a dedicated mobile application. There are large electronic screens in the store, so customers can learn about the new product release time and information about the store's activities. Consumer-customized products can also be quickly delivered to homes or hotels. Even fitting rooms are very gorgeous: Adaptive lights allow consumers to see the state of the equipment in the yoga room or night running.


The Soho store boasts three sports experience areas. There are two cameras around the treadmill. They can capture the pace of the runners - they can provide advice on the most suitable shoes. The video screen shows the scenes of Central Park and Battery Park around the city center. There is also a football experience area for testing spiked shoes on the other floors, as well as a half court basketball court area where you can shoot.


O'Neill said that Nike will continue to experiment with large-scale retail experience stores in big cities. However, the methods will be different from those used by Soho stores. "We want these sports to have a good audience base in this market," O'Neill said. "Choosing basketball in New York is equal to 'We understand the city'." There are also many people who love to run. "Sneakers in the Soho store display wall is the largest of all retail stores in the world," O'Neill said. "This shows that New Yorkers value the culture and style represented by athletic shoes."


For Nike, the opening of stores in the Soho District is to further promote the sales of direct sales, and further to reach the target of $16 billion by the end of fiscal year 2020. Sales for this piece include sales at Nike stores and online stores—the recent increase exceeds the growth in overall sales. For Nike and other sports product suppliers, it is very important to control the experience of self-operated retail stores. The reason is that the key wholesalers that they cooperate with, mainly department stores, have seen a decrease in passenger traffic. There are also some sports stores, such as the well-known Sports Authority, who went bankrupt due to the drop in physical store market share.


When you enter Adidas's Fifth Avenue store, you will feel like a player's passage into the football field. There is a fitting room in the store, replaced by a player locker room, there are stands in the store, you can sit down to watch the game live. Adidas has also built four custom stations where consumers can design their own accessories and footwear.


If there are only four products in the store, the customer will not be able to patronize after visiting once, said Mark King, president of Adidas South America. The challenge is that if customers return to the store after three months, the store needs to change. Kim said that the store is relatively full of changes - especially the ground floor, which can be used to promote new products, as well as star attendance events or other new Adidas attempts. Through the retail store as an experience resort, customers can fully realize the “experience” felt in the physical store.


Adidas executives in the six cities in the world - the United States has two cities in New York and Los Angeles - have a greater strategy: the company will increase marketing efforts to strengthen the retail store experience, hoping to build a strong brand experience in the metropolis, This makes this trend radiate to other regions. Opening a large store in New York reflects this strategy.


In cities like New York, where almost every trend has been established, once it is established here, it will spread all over the country in a matter of hours, Kim said. Then you can grasp this trend and develop retail partnerships in other parts of the country. "Adi also plans to control 60% of the brand's global retail space by 2020 - a substantial increase of 30% compared to the current level. Adi wants to achieve this by opening new stores, in-store department store in-store experience areas, and specialty stores. This goal, Jin said: When Adi took control of the brand's retail space, it could create more sales per square foot - a good thing for brands and retailers.


Reproduced from: China Clothing Talent Network


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