Sports Insight

March/April 2019

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8 • Sports Insight March/April 2019 D igital is driving Nike's business. Having just achieved its rst bil- lion dollar quarter in digital sales, Nike will emphasize mobile as it continues to push and invest in the digital channel worldwide. Key recent digital developments include the implementation of an algorithm that allows Nike to reward the most active members of the Nike+ community and triple-digit quarterly growth in both trac and revenues for its SNKRS app where 17 of the top 20 launched sneaker styles on the app had 100-percent sell-through rates. e Nike App is being enhanced in North America and Europe with a rollout in all owned retail stores and through the testing of new services and concepts in strategic accounts such as Foot Locker and Dick's Sporting Goods. Nike Digital grew 30 percent in North America in Q3, faster than all other channels. The Three Stripes Strategy Adidas' 2019 goals include growing its global e-commerce business to 4 billion euros ($4.5 billion). And in footwear, Adidas plans to take Kanye West's Yeezy franchise more mainstream with up to 20-30 separate releases this year. e company also plans to continue its Speedfactory eorts with Foot Locker and will be refreshing some of its iconic running styles of the 1970s and 1980s with fresh looks. Adidas AG CEO Kasper Rorsted says Adidas will sell more than 11 million pairs of footwear this year containing Parley ocean plastic. Overall North American revenues for Adidas rose 15 percent on a currency-adjusted basis in scal year 2018 to the equivalent of approx- imately $5.32 billion. n IN THE MARKET B Y B O B M C G E E What Do the Industry's Two Most Powerful Players on the Brand Side Have in the Works? Inside Adidas and Nike's 2019 Plans KRENZIEN, KRENZIEN & ASSOCIATES INC. THE SPORTING GOODS PROFESSIONALS Eight decades of EXCELLENT SERVICE! Please call us regarding representation in the Midwest, Pennsylvania, Texas & Mountain States. 425 Huehl Road, Bldg. 1 Northbrook, IL 60062 P: (847) 498-0400 F: (847) 498-0449 Skype: ron.isaacskka TARGET RECENTLY ANNOUNCED THE launch of a new expanded website called Target+, which will welcome third-party sellers, offering shoppers a wider array of products in certain categories, including sports equipment and sneakers. While similar to Amazon and Walmart's online marketplace websites, is aiming to offer a more selective assortment and the ability to sell on is by invite only. Schuylkill Valley Sports, the PA-based sporting goods chain, has been selected as one of Target's select specialty retail partners representing multiple sports departments. Items bought on the marketplace can be returned to one of Target's brick & mortar locations. "We are known for curation and our consumers, our guests expect that," Target's CMO and digital officer Rick Gomez told analysts. "Target+ is not intended to be a catalog of a list of products and products. Rather, we're going to go very deliberately, very intentionally after the right categories, the right brands." In addition to Schuylkill Valley Sports, Mizuno has also been invit- ed to participate on Target+. More industry are expected to follow. "It's a profitable way to grow out dotcom business because the third parties deal with the supply chain components of it... and then what we offer, which I think is a competitive advantage, is you can take your prod- uct if you are not happy with it back to a Target store," stated Gomez. n Sporting Goods and Outdoor Categories Are in the Crosshairs. Is New Online Marketplace on Target? Adidas Yeezy Boost 350 V2 Nike Adapt BB

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