Why did you walk by this epic structure?
Quick, when you hear the word Nike what is the first chain of thought that pops into mind? Perhaps: “expensive Jordan sneakers sold in a Foot Locker or Finish Line.” If given a little more time to ponder, maybe something like this would be visualized: “I recently walked by a Nike store in the mall, didn’t even realize they had their own stores.” Well, not only does Nike have its own brightly lit stores chock full of apparel and cheaper to produce sneakers, but it’s doing incredibly nifty from a financial perspective inside of them. Consider these fun facts:
- Nike’s same-store sales growth has outperformed most specialty retail stores in the mall, and its key partners, for over four years. Yes, four years.
- Nike’s fourth fiscal quarter (two quarters ago) represented 14 consecutive for double-digit percentage same-store sales growth.
- Nike’s same-store sales in the just completed quarter rose a whopping 10%, 1% higher than in the previous three-month period.
Let me venture into your brain for a second with this musing: Nike is a tech company that is poised to go head to head to a greater extent with Apple, Samsung, Google, and Jawbone in the rapidly expanding wearable device market. How will the king of sneaks do that? By out-flanking its new techie rivals via a winning combination of robust investment in the actual technology/ecosystem AND visually appealing mini shops in the mall, as I have videotaped below. I would not be surprised if in 2014 Nike Fuelband shops are launched in an eager to evolve Best Buy, in part because the blue-blooded retailer doesn’t sell the Fuelband line (currently, a single style is available on Best Buy’s online marketplace section).
The Real Deal
Your favorite sneaker company is metamorphasizing right in front of your very two eyes. The tighter integration of tech, fitness regiments, and an overall healthy lifestyle are readying to explode, and from what I am able to decipher Nike has a first mover advantage via its Fuelband shops to appeal to a broader audience, such as young non-athletes and babyboomers. The quality factor embedded in the Nike brand is the secret sauce to beginning the discussion on an item that many people are unaware of and on a topic, health, that is uncomfortable to talk about with a complete stranger.
3 @Twitter Friendly Stats, Wearable Fitness Edition
- Fitness sensors, and running and cycling devices are estimated to hit in excess of 56 million shipments in four years, according to IMS Research.
- The sports and fitness app market is conservatively estimated to reach $400.0 million by 2016. Conservative in the context of the torrid pace of new fitness devices arriving to market and the growth rates in smartphones.
- One of the faster growing niches in the market is projected to be for the wrist and finger, clocking in at a 10% CAGR up to 2017.
The Decoded Science Behind a Nike Fuelband Shop
- Giant, bright Fuelband prop catches the attention from far away in a crowded mall environment.
- Staffed with two Nike associates, the small shop with no walls is able to offer personalized service on a sensitive issue: one’s personal health and life goals.
- The touchscreen stations running along the exterior of the floor are an initial attraction for a casually interested consumer. Goal: an associate engages the casually interested consumer and ropes them into the center of the shop to begin the closing process.
Why is a Sneaker Company Opening Wearable Device Shops?
- To grow a market that remains in its infant stages, Nike must take its name and strong product out of the display cases of a Dick’s Sporting Goods and go directly to the consumer with a powerful, life-changing message.
- To make all of its investments now underway in wearable tech pay off for shareholders, Nike must get the Fuelband and its future iterations onto the wrists of the non-athlete. In many respects, Nike has to turn mom and dad, both age 65 and nearing retirement, into the athletes they were on the playgrounds 58 years earlier.
- To better tailor its future Fuelbands and likely, rings, Nike must extract sensitive information from early adopting consumers, and that will come from a relationship built between an associate and a customer.
What You Missed…
That hulking colorful circle, yeah, that is a Nike Fuelband. Pretty Hollywood prop like, huh?
The interactive fence that you just wanna touch…
Stations keep you in the shop AND sharing information, both crucial.
This is marketing 101: drive intrigue.