Nike: World's Top Sports Giant Tests O2O Revelation

Nike: World's Top Sports Giant Tests O2O Revelation Date: 2014-04-15 13:31
For the sports giant, when it has a lot of offline stores, whether to do O2O depends entirely on the determination of the giant to embrace the line. i Dark horse observed that for young Nike who is trying to indulge in rejuvenation, when teenagers have a lot of time on digital media, it is time to force.
From the perspective of the Internet, Nike’s digital strategy is actually building a low-level sports ecosystem, helping more consumers develop sporting habits and making the sport an indispensable part of people’s lives.
In 2013, Nike’s digital strategy took root in China. Nike is using the mobile Internet as a weapon to open up online and offline, so that more small partners can personally participate in sports activities and allow Chinese consumers to re-energize.
For 20 years in the Chinese market, the boundaries between sports brands and fashion brands are quite vague. After the Beijing Olympic Games, people's consumption and exercise habits have changed, and sportswear is no longer part of the daily wear of consumers. What followed was the three-year recession of the entire industry.
Through social networking such as WeChat grouping, attracting more users to participate, and then forming the stickiness of the data through data, and the interaction between data and social networking, allowing users to complete the precipitation on the Nike+ platform, which is the essence of Nike O2O .
On the 11th day of the 11th, when everyone was focused on Tmall, Nike launched a low profile public service account for the runners on WeChat Nike+ Run Club.
After only 10 days on the line, the service account for runners attracted 16,124 followers. Through the built-in running account function of the account, these users quickly created more than 1,000 WeChat groups for running themes.
This result is far beyond the Nike official's expectations. This WeChat test is actually another example of Nike’s many initiatives in the Internet and digital field in the past year.
After 2010, the domestic sports goods market suffered a whole industry recession. Inventory problems plague almost every company in the industry, and Nike is no exception.
However, although cleaning inventory and channel adjustments have caused every company to suffer, Nike is still free to advance another important task, which is to promote its own digital sports platform Nike +.
In 2013, Nike’s digital strategy took root in China. Nike has vigorously promoted its digital platform, Nike+, in its large and small offline activities. After nearly a year of hard work, Nike’s digital platform has experienced explosive growth. According to the exclusive data obtained by Business Value, as of October this year, in the Greater China market, the number of registered Nike+ online communities has increased by 130% compared to last year; Nike's mobile application downloads have been 570,000 from last year. Increased to 2.58 million, an increase of 350%.
Behind these efforts, there is only one purpose for Chinese consumers to re-erect.
Nike is using the mobile Internet as a weapon to get online and offline so that more small partners can participate in sports activities. This is an O2O that belongs to Nike.
Changing sports and spending habits In the eyes of many domestic counterparts, the Internet and digital strategy that Nike is promoting is a thankless task, because these efforts cannot directly promote sales of Nike. Nike Greater China Communications Director Huang Xiangyan It also admitted to the "Commercial Values" that Nike did not expect these efforts to directly drive sales growth.
So why did Nike want to do this?
To understand the significance behind Nike's digital strategy, we must first understand the changes in the environment facing the sporting goods market. The root cause of the decline in the industry in the past three years is actually the change in people's consumption and exercise habits.
For 20 years in the Chinese market, the boundaries between sports brands and fashion brands are quite vague. Especially before the 2008 Beijing Olympic Games, under the Olympic concept, the people’s sports enthusiasm was high and the days of sports brands were quite moist.
However, what many people have overlooked is that in the prevailing market environment, consumers did not buy sports brand products because they had good sports habits. A pair of sports shoes and a sportswear may be his work and daily life. The main dress up. For these consumers, there is no difference in the nature of buying a sportswear and buying a casual wear just because of the impact of the environment at that time, many people will be more inclined to buy sports brand products in the subtle.
With the end of the Beijing Olympic Games, the good days for sports brands in China have come to an end. The increase in the level of national income led to the subdivision of consumers’ clothing needs, and consumers became more and more sophisticated. In the first-line market, sportswear is no longer part of the daily wear of consumers, and the rising fast fashion brands quickly diverted customers from sports brands.
This change in consumption habits eventually led to an imbalance in the supply and demand relationship in the sporting goods market. What followed was a three-year recession in the industry.
However, this round of recession is not all a bad thing. Ebbing and sanding will help the sports brand filter out the truly core sports consumers. Although on the surface, the overall demand for sports products is indeed declining, at the same time, more and more white-collar workers in the first and second tier cities are beginning to pay attention to their own health and begin to participate in sports consciously and systematically.
The following example may help you better understand the current changes in the Chinese sporting goods market: There are 10 million people who originally purchased sports brands, but only 1 million of them actually have sports habits and sports needs. Today, due to market segmentation and other reasons, the consumer population of sports brands has dropped to 5 million. However, users with good exercise habits account for 2 million.
Therefore, for sports brands to speak, there are actually two challenges to be faced right now. One is how to serve these high-impact sports groups. The second is how to expand the base of the core sports crowd. Nike chose to use the Internet as a weapon to meet these challenges.
Nike may not be able to go to a store in every city, but such a platform can bring Nike to every consumer. Also bring every consumer to us. Huang Xiangyan said that Nike is a company with young people as the main market, so learning to communicate with them in a young way is a very important issue.
On the 11th day, Nike launched a low profile public service account for the runners on the WeChat Nike+ Run Club. It took only 10 days to go online. The service account for running enthusiasts attracted 16,124 followers, running through the built-in account. As a group function, these users quickly created a WeChat group of more than 1,000 running themes.
Leveraging micro-channel public number Nike has always been a company that flaunts innovation. Over the past 30 years, it has been guiding the development of the entire industry at the technical level. Today, the company is no longer satisfied with selling a pair of sports shoes to consumers. It begins to set itself a more ambitious mission to help users exercise more scientifically and systematically.
In addition to providing products, what we want to do most now is to provide services. The so-called service is to make users more fully aware of the brand and sports. Huang Xiangyan explained the meaning of Nike+ to "Commercial Value".
For a sports brand, to achieve the above goals, the prerequisite is to understand how their users actually exercise.
Over the past three years, Nike has launched a number of products that quantify the movement of users. In 2010, Nike+Running, a mobile application for running sports, was launched. In 2011, it launched a sports watch with GPS function in cooperation with TomTom. Last year, Nike Even the sportswear wristband Fuelband was launched. In October this year, it further released the second-generation product, Fuelband SE. This also marks Fuelband being included in Nike's regular product line; just in early November, Nike was targeting the iPhone 5s. Built-in M7 dynamic co-processor to customize the daily event recording application Nike+ Move also officially landed on the App Store.
When motion data in the real world is quantified and passed on to the virtual world, Nike can begin to guide users into sports more efficiently. Through incentives and other mechanisms, Nike can make the user's movement more systematic and regular, and users can understand their daily activities at a glance.
However, it is not enough just to do this. In the Chinese market, Nike wants to regain lost ground, but also to find ways to rekindle the consumer's sports enthusiasm. Nike hopes to achieve this goal through social means.
Just as there are opinion leaders who can lead public opinion at the level of information dissemination, in the sports world, there are sports people in every person's social circle. Nike hopes to use these movements as the core to drive more people in the circle of friends to participate in the sport.
Using social media and tools for marketing has long been a new means. In overseas markets, Nike has long connected its core product, Nike+Running, with social products such as Facebook and Twitter. Users can use it at the end of the campaign. Share your own sports records on social media. In China, alternatives to international social media are Sina Weibo and QQ Space. Pan Shiyi is probably the most famous Nike+Running user in China. For the past two years, Pan Shiyi has frequently sung his running performance on Weibo, and has become an unofficial designated spokesperson for Nike.
However, sharing his running performance is only a very basic means. With the decline of Weibo activity, Nike has begun to explore new ways. The Nike+ Run Club public account on the WeChat platform is in this context. Born.
This is not the first time that Nike has been promoting based on WeChat. Almost a year ago, Nike had used his public account, but pushing brand news and product information has never been a Nike-respected user communication method. Therefore, Nike has been Look for ways to promote WeChat in line with your brand's tone. Until the WeChat 5.0 fully upgraded the public service account, Nike's digital marketing team finally found inspiration.
In recent years, running has rapidly become popular among white-collar workers in China's first-tier cities. Various types of running organizations have also emerged in an endless stream. Not only major sports brands have established running clubs, but even some traditional enterprises have also participated in them. Vanke and Lenovo's internal running sports have already reached a certain scale.
But in addition to these organizations with corporate background, Nike hopes that more ordinary people can participate in it. Wechat's group function is undoubtedly a good opportunity. In Nike's Nike+ Run Club account, users can use their own Find the running organization around and find more like-minded runners.
In addition to running the public account, it is reported that Nike is still in full swing planning basketball public service account.
For most people, running is a relatively independent exercise and it does not need a lot of people to complete it. But basketball is different. In the vast majority of cases, this is an activity that requires many people to participate. For many fans, organizing small players to play a game is a headache, because it is difficult to get the right number of people. Nike's digital marketing team is discussing the use of WeChat group features to help users solve this problem.
Through social networking to attract more users to participate, and then through the data to form a user stickiness, and then data and social interaction between the two, allowing users to complete the precipitation on the Nike+ platform, this is the essence of Nike O2O.
The true potential of the Nike+ platform Today's familiar domestic and international sports brands have at least 20 years of history. But in the past few decades, no one sports brand has been able to truly understand its own consumers. Even though many companies commission third-party organizations to conduct various types of user research every year, the number of samples that can be collected is The degree of detailed information is quite limited.
After a pair of running shoes are sold, they have nothing to do with the brand company. No one knows exactly how users use these products after they bought them. Whether it is used as a day-to-day dress, or really used for running every day. Even if it can be inferred from a repeat purchase frequency whether a consumer has exercise habits, but what exactly is his exercise habit, brands still do not know.
However, for Nike, through continuous efforts in Internet products, it is really understanding the user's exercise habits, including the user's exercise frequency, exercise time, and location information. There is a great deal of hidden value in these data.
First of all, it can achieve more accurate advertising in the future. Users with large amounts of physical activity must be the core sports crowd. The demand for sporting goods is also more prosperous. In fact, the current Nike+Running product has such features in disguise. Users can mark their own shoes after each running. When a pair of running shoes has run 300 to 500 kilometers, the functionality will be greatly reduced. It is time to purchase new shoes.
Secondly, from the user's movement geography information, you can find out which areas of the sports crowd are relatively concentrated. In this way, Nike can open this information to its agents in the future, optimize the agency's store location, and guide them to focus on the sports crowd. The area regularly hosts promotions.
Third, the user's exercise data can help designers and product managers design products that are more in line with consumer needs. Nike's running shoe product director said in an interview with Business Value that they learned from Nike+ that a large number of users are running at night, so they will intentionally add more reflective materials to the product. Imagine that in the future, Nike will be able to more effectively allocate its own production capacity and lay out its products in stores in different regions, in conjunction with Nike's further understanding of user height and body information. In the future, you will not be able to see a certain product in the store but you do not have a size that fits your needs.
From a more macro perspective, one day, Nike+ can even help Nike forecast the market when the scale of its users increases further. At present, the number of registered users of the Nike+ community has reached 18 million. Through certain mathematical models, Nike can actually understand the changes in the user's movements. For example, when the total amount of user movements collected is declining, it is necessary to appropriately control production capacity and invest more resources in marketing.
These are not all unattainable illusions. A considerable number of them are indeed happening or will soon be realized. It is only for Nike that it is still a stage of suffocating money and there is no need to boast about his own methodology with his opponents.
From the perspective of the Internet, what Nike is currently doing is actually building a low-level sports ecosystem, helping more consumers develop sporting habits and making the sport an indispensable part of people's lives. Such an initiative is not only beneficial to Nike itself. In the long run, the entire industry can enjoy the benefits of Nike's Internet strategy.

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