Nike launches Nike Fit to scan your feet, tell you the shoe size
Beyond educating its customers on size, and hopefully helping more people avoid injuries from using the wrong size shoes, this technology can also be a financial blessing to Nike, with its dominant position in the sneaker industry.
According to NPD Group Sports Analyst Matt Powell, Nike is the number 1 brand in the US for sales, representing about one third of the market, ahead of Adidas, with 11% of the market, and Under Armor. It's also very hot among teenagers with money to spend.
"Nike has no danger of giving up # 1 in any way," Powell said. "The consumer today is looking for unique products," as Nike continues to churn out, he said.
Having said that competitor Adidas, while still having a smaller share of the US market, it has increased sales in the US at a faster rate. In the last quarter reported, Adidas increased its sales in North America by more than 1[ads1]1% compared to a 7% gain in Nike's sales in the region. Adidas is also on the rise for a sneaker collaboration with singer Beyonce, who is expected to speed up the US.
In 2018, 64% of the Nike brand revenue from shoes came to $ 22.27 billion of $ 34.49 billion in total sales. It does not include sales by Converse, operating as a Nike business, and Converse sneakers will not be compatible with Nike Fit.
Shoe sales increased by 6% last year, except for exchange rate fluctuations, thanks to the strength of driving, Nike said. But there was less than 8% growth in footwear revenue in 2017, when Nike did not sell so many Jordan shoes in 2018.
When testing the Nike Fit in stealth in three markets – Seattle, Pasadena, California, and Dallas [19659008] – Martin said the company noticed that the conversion rates increased for those who used the Nike Fit to find the right shoe size, which means that the people were more likely to leave the store with a bag in their hands. They were also more likely to come back later and buy another pair of shoes. Nike said the returns were down at these stores. And employees spent less time driving back and forth to the warehouse to gather other sizes.
It can also help Nike make the right inventory. Martin explained that Nike, like many shoe brands, usually sends shoes in bulk to different geographic areas based on a standard "curve" long predicted for the industry, how many usually carry each shoe size. But he said the basket is not as accurate as it could be. And then it's easy for companies to end up with too many size 10 sneakers on one market, when it really is 9 that several of them need to wear, for example. Data collected from Nike Fit will help your company create its own curve.
"We've never had any data coming back to understand just how accurate this distribution is," Martin said.
Finally, the Nike Fit is expected to help Nike grow its membership base, which represents over 150 million people worldwide today. A Nike membership is free to sign up for and offers members early access to new product launches, a birthday reward, the ability to chat with athletes for goods or training tips, and on-the-go workouts from the Nike's app. It is on the right track to increase its membership base to 300 million people, as these customers spend 40% more than guests' customers.
During his six-month trial of the Nike Fit in three stores, Nike said the service was the strongest lever to increase the membership enrollments it has so far found.
