Consumers Choosing Brands with Elevated Service and New Customer Experiences

Mark Parker, CEO of global icon Nike, learned three key customer-related themes that emerged during the company’s fiscal year.

“As I reflect on the year and what the consumer is telling us, three insights stand out,” Parker said during the company’s recent fourth-quarter earnings call. “First, the consumer appetite for newness and choice has never been higher. Their connected world means unlimited access to new products. When they see something they love, they want more versions of it from performance innovation to style. For example, this year the introduction of the Air VaporMax energized the whole Air platform. Five of our top 10 sportswear styles featured Air Max cushioning, adding fuel to a NIKE Air business that already represents several billion dollars. Second, consumers are choosing brands who lead with elevated service and new experiences. They want brands that are engaged and make a personal connection. Our opportunity is to create more compelling experiences in NIKE environments and with our best partners. Third, consumers want the latest products faster. This year we continue to build more agility and speed into our organization. We’re becoming better editors through high impact initiatives like EDIT to AMPLIFY, and we’re driving scale and efficiencies. Innovation is how NIKE sets trends and new capabilities like the Express Lane are how we adapt to them.”

Nike grew its annual revenue 6 percent, to $34.4 billion.

“All told, these are the forces helping to shape our triple double strategy and our recently announced Consumer Direct Offense,” Parker added. “We’ve aligned product, design, categories in key cities all the way to the consumer. Supported by our strong brand, we are executing with precision and focus. Under this new formation, we’re in the best position to drive growth against the biggest opportunities. And we’re clear about what those opportunities are, to double innovation, speed, and direct connections with consumers.”

Parker talked about 2X innovation.

“It’s about taking the consumer somewhere new and expanding our opportunities for growth,” he said. “For example, we all know how critical cushioning is to an athlete’s performance and that different athletes have different preferences. This summer we’re offering a range of experiences through a cushioning revolution. That’s three new platforms that push the edges of performance.”

The first is the Air VaporMax, which has been very successful out of the gate with strong sell-through across multiple releases.

NIKE React debuted during the NBA playoffs and is the first high-performance pump system that offers a major
leap forward in three key benefits: Lightweight, ultra-responsiveness, and durability in one single platform

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