Nike’s profit in this fiscal year’s Q4 profit has grown over 50% from the direct sales. Direct sales are where Nike is selling the product through digital means. Nike said that their direct selling business has enabled them to connect with the customers and understand them. There are very few apps that have a direct connection to the customer. It has one such app. Nike’s performance was great even physically but the main focus was on direct selling.
40% of its direct-to-consumer digital business in Q4 came from its two eCommerce mobile apps, the Nike app, and SNKRS apps, Donahoe said. Its SNKRS app, which enables shoppers to get coveted Nike sneakers earlier than other shoppers, led the charge. The app grew members more than 90% year over year in Q4 and had 80% growth in monthly active users, Donahoe said.
Nike is a big brand, but pandemics also affected it. Moving towards Digital Business has definitely been beneficial as they came close to their customers. A direct relationship was established which not only boost its revenues but also made it a niche brand in itself.
It has gained a lot more momentum this year. The global growth was tremendous this year. It also has a loyalty program that enabled them to do a lot better and connect with the customers and bring more profits in. The renewed demand for sneakers and other apparel will surely bring more success to Nike. Nike cutting down on wholesale and focusing more on the direct selling business. DTC brands are gaining growth and sales as they don’t have to share the commission with the middle man.
Read the complete article here: https://www.digitalcommerce360.com/2021/07/01/nikes-q4-online-sales-jump-more-than-50/