Nike, a multinational corporation engaged in worldwide marketing and sales of footwear and apparel has pointed to direct sales increasing from 28% to $4.7bn (£3.4bn) and a rise in online sales, as proof of its digital strategy, as it aims to be a 40% digital business by 2025.
Nike has credited the increased momentum of its digital business for a 16% surge in revenue and says it expects digital to be its leading channel for growth this year.
Speaking on an investor call, CEO John Donahoe said “Even as we saw physical retail traffic return across much of the portfolio, digital continued its momentum with 25% currency-neutral growth, led by North America at over 40%.
“Our digital success is evidence of the product innovation, brand strength and scale that drives our meaningful relationships with consumers as we continue to show momentum against our biggest growth priorities.”
“Nike Digital now accounts for 21% of total revenue, an increase of two points compared to last year, even with the reopening of physical stores. The brand said it is well-positioned to reach its target of a “40% owned digital business by fiscal 2025.”
“The sportswear giant noted that five years worth of change from consumer attitudes to digital has taken place in just two years due to the pandemic, a shift that has “worked in our favour” and has Nike in a “stronger position” compared to rivals,”
“That plays to Nike’s advantage. Our ‘Consumer Direct Acceleration’ strategy is capitalizing on this marketplace transformation. We know that when we get to the other side of this, we’ll be in even stronger shape. We’ll be more agile, more direct and more digital,” said Donahoe.
Nike launched its Consumer Direct Acceleration strategy in 2017 to “leverage the power of digital” by investing in its ecommerce, apps and product innovations.
By
