Wednesday, 21 September 2016

Game of Throne: Nike Prioritise Digital Marketing As Sportswear Competition Gets Tougher

As competition between in the sportswear market get tougher especially in North America, Nike believes it can can "win back dominance from Under Armour in the US" with "digital will play a big role" in achieving that.

According to Nike's global head of digital ecosystem design, David Greenfield, “If we look at our recent marketing activity for the NMD brand it was 100% on social. It wasn’t a 30-second TV spot or some slogan but a digital-only strategy that made us sell out of those shoes in a matter of hours,” he told Marketing Week last week at the Dots 2016 event in Brighton organised by agency Brilliant Noise.

“We want to apply a value exchange model. If you get coffee or your hair cut, you are willing to pay extra for a good service or somewhere you trust, right? That’s because of the experience that’s built around those products.
“That is what Adidas is aiming to do from both its products and digital presence,” he added.

North America is the biggest contributor to Nike’s revenues, with a share in excess of 40%. Strong growth in basketball, men’s training sportswear and running are driving high sales in this geography.

The growing popularity of keeping fit and playing sports is not likely to end anytime soon. Puma and Baltimore-based company Under Armour have become some of the major competitors in the market.

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