Because of the shopping habits of millennials, Nike is about to grow even bigger. According to Morgan Stanley, athletic gear and footwear such as Nike Airmax will dominate the industry in five years. That means Nike, the market leader, could experience a surge in business. Here are some customer trends that are propelling Nike to new heights.
Young people are more concerned with their health and well-being.
According to Morgan Stanley, the number of participants participating in running events has increased by 9% every year since 2005. According to the data, millennials believe that exercise is crucial for good health, whereas their parents focused solely on a diet. Increased activity means more money is spent on sporting apparel and footwear. People consider sports footwear and clothes to be more than just a fad.
Better products are being produced as a result of increased competition.
Under Armour, Adidas, New Balance, and Lululemon are among the companies that compete with Nike. The arms race has resulted in a flood of new ideas and products that customers can’t get enough of. Nike Airmax shoes, for example, have been a huge hit.
People prefer to be at ease.
While yoga pants and sneakers are frequently touted as fashion trends, Morgan Stanley’s analysts feel that buyers are addicted to informal comfort. Analysts anticipate that consumers will continue to prefer this type of clothing over denim. This is good news for Nike, which recently built its first female-only store. If this trend holds, the corporation may be able to expand its product offerings while also increasing earnings.
Nike has expanded their product line to include shoes for baseball, basketball, cycling, golf, volleyball, tennis, gym & training, and yoga. Nike enables you to be free to choose their items regardless of what activities you enjoy.
Due to competition from other brands, Nike focuses on new inventions and technology to assist athletes in improving their performance. Nike Air technology extends back to 1979, but newer innovations include foam cushioning, knits, other lightweight materials, and more durable support.
Sustainability is crucial to the company’s target market; thus, the company has put a lot of work into it. Nike’s Reuse-A-Shoe programme, for example, collects used sports shoes to be repurposed instead of ending up in landfills. Nike Grind is made from recycled materials to make fields, tracks, basketball and tennis courts, playgrounds, apparel, new equipment, and shoes. This organisation collects and recycles over 1.5 million pairs of sneakers each year.
Even the technology poured into the design of the brand’s athletic shoes was not enough to entice additional customers, the company realised. To set Nike apart from other companies, the corporation needed to develop fresh products. It entails deviating from the primary business and producing something more consumer-friendly. As a result, the company decided to concentrate on athletic accessories. Nike + Sportwatch is likewise based on Nike’s original electronic chip, created for running/walking shoes.
These developments had a major effect on the economy, resulting in a Nike user community of millions of people. The digital tools motivate not just athletes but also individuals who desire to become athletes or live a healthier lifestyle. Users compare, discuss, and share their experiences with Nike’s various gadgets, allowing the firm to spend less on traditional marketing and retain brand recognition more successfully through the community. It brought the company closer to its customers in the process.
Nike is a trailblazer, which aids in the company’s continued global expansion. It constantly pushes its innovative boundaries to develop new items and differentiate itself from competitors. The organisation quickly takes advantage of new technology and opportunities to expand its customer base. Maintaining a tight relationship with customers allows the organisation to gather vital data, contributing to innovative products.