NIKE Expanding E-Commerce in Pursuit of $7 Billion Growth Goal
At NIKE, Inc. "digital does more than just add capabilities for today," said Mark Parker, President and CEO. "It defines how consumers will experience the NIKE Brand moving forward. It’s an accelerator across our business in product through the supply chain, in analytics and all the way to retail."
Parker spoke of the importance of digital as NIKE pursues a long-term vision for e-commerce growth of $7 billion in revenue by the end of fiscal year 20. In its second quarter 2016, the company continued its accelerated pace, growing the NIKE.com business nearly 50% on a constant currency basis.
"2015 was the single greatest calendar year ever for the NIKE Brand," noted Trevor Edwards, President, NIKE Brand.
Second quarter reported revenue increased 4% and grew 12% on a currency-neutral basis. The NIKE Brand grew 13% on a currency-neutral basis as growth was strong across all geographies and nearly all categories.
The company added Canada, Switzerland and Norway to its expanding list of e-commerce markets in the second quarter and in the next quarter NIKE plans to do the same for Mexico, Turkey and Chile.
"When we expand our NIKE.com footprint, it gives new consumers access to the best of NIKE and it drives great energy for our business," said Parker. "We have focused our investments in digital and mobile over the last several years and they are paying off. Driving the connection of NIKE.com to our broader digital strategy continues to be, without a doubt, one of our greatest opportunities as a company."
Parker noted that digital allows the company to deepen the relationships its already has with consumers by tailoring every interaction to their specific needs. ThroughNIKE+ the company has created an "ecosystem" that gives athletes access to their fitness history, training programs, and their favorite gear every time they connect with NIKE.
"You will hear more from us about this space later in the fiscal year," said Parker, "but we are continuing our never ending quest to make the digital experience simple and personal. Simple, moving toward one access point for the best of NIKE and personal more and more tailored to the individual."
The retail industry isn’t facing disruption--it’s already been disrupted. Technology is impacting retail on a grand scale and the resulting digital transactions influence $2.2 trillion in retail store sales today. How will retailers navigate an increasingly competitive business environment and innovate their value proposition? Retail leaders from top brands, including Christiana Shi, President, Global Direct to Consumer NIKE, Inc., will provide a look into the future of the industry during the "Retail Dsrupted: Navigating the Digital Age" session at NRF's Big Show 2016.
Click here for RIS News' annual look at the must-see sessions at retail's biggest event of the year.
Parker spoke of the importance of digital as NIKE pursues a long-term vision for e-commerce growth of $7 billion in revenue by the end of fiscal year 20. In its second quarter 2016, the company continued its accelerated pace, growing the NIKE.com business nearly 50% on a constant currency basis.
"2015 was the single greatest calendar year ever for the NIKE Brand," noted Trevor Edwards, President, NIKE Brand.
Second quarter reported revenue increased 4% and grew 12% on a currency-neutral basis. The NIKE Brand grew 13% on a currency-neutral basis as growth was strong across all geographies and nearly all categories.
The company added Canada, Switzerland and Norway to its expanding list of e-commerce markets in the second quarter and in the next quarter NIKE plans to do the same for Mexico, Turkey and Chile.
"When we expand our NIKE.com footprint, it gives new consumers access to the best of NIKE and it drives great energy for our business," said Parker. "We have focused our investments in digital and mobile over the last several years and they are paying off. Driving the connection of NIKE.com to our broader digital strategy continues to be, without a doubt, one of our greatest opportunities as a company."
Parker noted that digital allows the company to deepen the relationships its already has with consumers by tailoring every interaction to their specific needs. ThroughNIKE+ the company has created an "ecosystem" that gives athletes access to their fitness history, training programs, and their favorite gear every time they connect with NIKE.
"You will hear more from us about this space later in the fiscal year," said Parker, "but we are continuing our never ending quest to make the digital experience simple and personal. Simple, moving toward one access point for the best of NIKE and personal more and more tailored to the individual."
The retail industry isn’t facing disruption--it’s already been disrupted. Technology is impacting retail on a grand scale and the resulting digital transactions influence $2.2 trillion in retail store sales today. How will retailers navigate an increasingly competitive business environment and innovate their value proposition? Retail leaders from top brands, including Christiana Shi, President, Global Direct to Consumer NIKE, Inc., will provide a look into the future of the industry during the "Retail Dsrupted: Navigating the Digital Age" session at NRF's Big Show 2016.
Click here for RIS News' annual look at the must-see sessions at retail's biggest event of the year.