During NIKE's quarterly earnings call with investors on September 22nd, leading executives said they believed the “consumer shift toward digital is here to stay” having seen this channel move three years ahead of the progress schedule it had expected before the COVID-19 pandemic arose.
Nike’s membership program also witnessed a 60% spike in active users and “even higher growth” in the number of people who made purchases. The program offers;
- a free service with perks like exclusive products
- athlete stories
- training programs
“As we grow digital engagement and we retain a higher proportion of engaged members with increased buying frequency, we will be lowering customer acquisition costs, increasing our return on adspend, and changing the shape of our demand-creation investment. Matthew Friend, Nike’s chief financial officer.
The Nike Training Club app, which provides on-demand access to exercise routines that can be completed at home, also enjoyed 50% of its members begin workouts in the last three months.
“We know a consumer who connects with us on two or more platforms has a lifetime value that's four times higher than those who don't,” John Donahoe, Nike’s president/CEO
Five New Consumer Drivers *
Financial Anxiety:
The tough economic climate will drive low-impact consumerism and a desire for products with purpose and longevity.
Health Concerns:
Wellbeing was already under the spotlight but add in the fear of physical and mental safety concerns – and with self-care a rapidly growing industry – it’s little surprise that this is a critical consumer sentiment.
The Loneliness Syndrome:
A pervasive issue pre-Covid-19, loneliness has been driven by the switch from physical to digital connectivity and an increasingly desynchronised society. Post-pandemic ‘quarantainment’ will increase, becoming a new multigenerational normal.
Quest for Truth:
Prior to the pandemic, inaccuracies and falsehoods became a battleground in an increasingly partisan and post-truth world. Coronavirus has put a premium on truth. Keeping consumers reliably informed has never been more critical.
Safety Fears:
From social and political unrest to the global pandemic, safety and security is the great demographic and socioeconomic unifier. We are seeing a rise in collective trauma that is making the sanctuary of the home more important than ever.
Five Resilience Strategies *
Add Value;
by creating not just own-value ranges and affordable lines, but also think multipurpose and multifunctional products – and for beauty and household essentials, go big.
Deliver Wellness;
for consumers who are health-conscious and looking for holistic solutions, addressing diet, beauty, fitness and home hygiene.
Gain Trust;
for consumers who value truth. Be clear, open and honest about your supply chains. Take corporate social responsibility seriously and show you care.
Promote Togetherness;
and inspire community spirit in both the real and digital world, through third-space opportunities and products that bring you closer to your customers.
Offer Comfort & Reassurance;
in multiple ways. Recognise the home as the primary focus for work, rest and play. Add protective layers in apparel and beauty for life outdoors.
* Irish Times, Nike beats profit estimates as online sales rise 82%
** The Value Shift, from WGSN