Mobile is at the heart of Nike’s House of Innovation stores

by The One Centre

13

December, 2018

13th December 2018

At Nike’s flagship stores in Shanghai and New York, selling shoes isn’t the primary goal. If you enter these stores and don’t spend a cent, that’s perfectly okay – so long as you download the NikePlus app.

Nike has just opened flagship stores in New York and Shanghai, with a third ‘House of Innovation’ to open in Paris next year. Mobile sits at the heart of the in-store experience: to unlock the best offers and service, you’ll need to download the NikePlus app first.

Nike’s decision to unite its mobile and physical experiences is backed by compelling research. NikePlus members spend three times more on Nike.com than regular shoppers, so its House of Innovation stores are designed to convert visitors into NikePlus devotees who shop more often, are more engaged, and spend more on average per purchase.

Earlier this year, Nike tested its mobile-meets-retail concepts at a pop up store in Los Angeles. It found that people who visited in-person spent 30% more, online, afterwards. In other words, bricks-and-mortar retail isn’t dead – but its future is fused with digital platforms. Its L.A. concept store also converted six times more visitors into NikePlus members than regular Nike stores in New York.

“The future of brick-and-mortar shopping revolves around your phone.”

According to Bloomberg, Nike believes the future of brick-and-mortar shopping revolves around your phone: “The Nike store of the future isn’t primarily aimed at driving sales within its four walls, it’s more of a front porch for Nike’s entire ecosystem.”

 

Nike’s New York flagship is called House of Innovation 000, and is spread across six floors. There are signs reminding people to download the NikePlus app at every turn, instantly converting them into members. At the House of Innovation 001 in Shanghai, which opened in October, a new member downloads the app every two minutes.

The app can then be used to skip queues at checkout to make instant purchases via your mobile, book appointments with in-house stylists, or ask for clothing to be delivered directly to your change room or a dedicated pick up area.

The rise of online shopping has inadvertently made the in-store experience less enjoyable. Today’s stores are more likely to be under-staffed, with longer queues and crankier salesclerks.

As Fast Company observes: “The sneaker giant has an ambitious new goal: woo people who hate shopping IRL” by making shopping in-store as convenient as shopping online.

Another key driver of Nike’s mobile strategy is data. Once you’ve downloaded the NikePlus app, Nike can track your likes and dislikes. The more it knows, the better it can speak to you directly, and the more you’re likely to purchase. It will remember which shoes you tried on or the length of your stride, and suggest new products accordingly.

“There’s a logic to pushing shoppers that way,” retail expert Wendy Liebmann told Bloomberg. It’s not all about the immediate transaction – it’s about using data to get to know your customers and bring them into your community, she explains.

Nike was founded in 1964 and is one of the world’s most valuable brands – but it’s facing growing pressure from archrival adidas. After reviving its Stan Smith and Gazelle classics, adidas sales grew 25% in North America in 2017 versus just 3% for Nike, beating Nike for “technology, innovation and style”.

But Nike is fighting back. In 2017, it announced its ‘Triple Double strategy’ to double innovation, double the speed of product creation, and double direct connections with consumers by “shaping the future of retail”.

Its full-year revenues rose 6% to $36.4 billion in 2017-18, and sales surged by 31% following the launch of its controversial ad starring Colin Kaepernick in September.

Now, Nike is bringing the House of Innovation to a total of 12 cities. By bridging the gap between digital and bricks-and-mortar experiences, it claims these cities will account for over 80% of growth until 2020.

“This is one of our most bold and confident moments on our journey of innovation.”

As Heidi O’Neill, president of Nike’s direct-to-consumer arm, told Business Insider: “We’ve watched how consumers shop online, and we think there’s a lot of amazingness there that we can bring to a physical shopping experience … This is one of our most bold and confident moments on our journey of innovation.”

Adam Sussman, Chief Digital Officer at Nike, is also confident that the future of retail is all about bringing mobile and physical experiences together. “We really believe that we are leading and innovating the future of modern retail. And this store is our most immersive and experiential yet.”

 

Why It Matters

  • Nike’s House of Innovation stores bring the convenience of online shopping into the physical world.
  • Stores of the future won’t be designed primarily to drive transactions. They will use technology to draw customers into a brand’s community as members who receive exclusive benefits – and spend more as a result.
  • Apps are becoming critical to the in-store shopping experience. Not only do they improve the shopping experience by enabling instant, cashier-less purchases, but they allow brands to collect data and target their communications accordingly.
  • Retailers are now competing with entertainment in a fragmented media landscape. To attract shoppers with short attention spans, stores of the future will have to be as responsive and personal as possible.
  • Nike’s House of Innovation stores are hyper-local, offering Shanghai-only and New York-only products.
  • Nike’s flagship stores also build on the success of NIKEiD, a service that allows customers to customise their own Nike shoes and is now a key driver of direct-to-consumer sales. Each store offers “unparalleled personalization” through the Nike Expert Studio and Nike by You, where NikePlus members get unrivaled access to gear, enjoy private sessions with stylists, or book one-on-one sessions with a Nike designer to customise select shoes.

Credits

Article By: The One Centre
Ideas and innovation company
Twitter @onecentregroup

Share

Share on Facebook
Share on Twitter
Share on Linkedin
Share via Email

Related Stories

Finance

Doconomy is a banking service with a conscience

Transport

Will Wing’s drone deliveries help or hinder bricks-and-mortar retail?

Health & Fitness

Oura ring is unlocking the secrets of sleep

Technology

Why millennials love paying for Lemonade insurance

Lifestyle

How Everlane’s radically transparent ethos is upending fashion

Health & Fitness

Recyclable glasses made simple from Dresden

Food & Beverage

Eat an Impossible Burger, save the world

News

Brands Disrupting the World: book now for our next ONEtalks

Health & Fitness

Sex education you can trust: how Clue is tackling taboos

Food & Beverage

Drinking Oatly is more than a trend. It’s a "paradigm shift"

Lifestyle

Mobile is at the heart of Nike’s House of Innovation stores

Centre News

The psychology of selling to the world’s ultra-rich

Fashion

The Phluid Project: Shaking up the gendered world of fashion

News

The One Centre acquires digital media agency Effilab Australia

Finance

Koho is taking back your dreams from the banks that stole them

Transport

Forget buying a Mercedes-Benz. Why not subscribe?

Technology

Behind the meteoric rise of the world's biggest vaping brand JUUL

Retail

Cult Korean eyewear label Gentle Monster takes on London

News

The One Centre presents the brands disrupting the world at ONEtalks

Transport

Uber has a better way to map data – and anyone can use it

Health & Fitness

Forget ‘stoner’ – MedMen is taking marijuana mainstream

Centre News

Four pillars of brand success – John Ford writes for Startup Daily

Fashion

Virtual celebrity Lil Miquela partners with Japanese label Ambush

Fashion

Oakley’s ode to obsession

Fashion

"Will finds a way" with Under Armour

Technology

Kengo Kuma is purifying the air at Milan Design Week

Technology

Facebook is building Willow Village. Would you live there?

Technology

Apple recruits Spike Jonze to welcome you home

Technology

Dot Watch is disrupting the Braille market

Transport

Is Hyundai Pavilion the darkest building on earth?

News

The One Centre presents ‘Disruption Needs Construction’ at Sydney Design Festival 2018

Transport

Nissan brings its tech to life with self-driving slippers

Fashion

Outdoor apparel brand Patagonia to sue the Trump administration

News

The One Centre is hiring creative directors. Here’s our manifesto.

Fashion

Tiffany & Co brings Breakfast at Tiffany’s to life with luxury collection

Products

Behind the scenes of OK Go’s ‘Obsession’

Fashion

The North Face combines daydreams and free skiing stunts in a mesmerising film

Fashion

Nike is fighting bots with augmented reality

Centre News

"The only way is up" - John Ford writes for Mumbrella

Fashion

Fashion house Yves Saint Laurent opens a museum in Marrakech

Transport

Volkswagen explores the father/son relationship in an emotional film

Technology

Meet Norman, a WebVR tool for doodling in space

Centre News

“Give Dove a break” - John Ford speaks to CMO magazine

Food & Beverage

Guinness saddles up Compton Cowboys for latest Made of More film

Products

Minimalist Japanese brand Muji expands empire with fresh food market

Technology

Teenage Engineering

Technology

A forest where gods live

Fashion

Louis Vuitton teams with Supreme for ultimate brand collaboration

Technology

Technological Nature

Technology

Playful Palette

Fashion

Nike creates graphic feast for Air Max

Transport

Volvo returns to safety positioning in masterpiece film for the new XC6O

Products

Ikea to employ Syrian refugees in social sustainability project

Technology

Screens of the future

Technology

Apple’s extravagant new campus brings brand values to life

Products

Transformative Appetite

Products

Dove launches Real Beauty Productions to tell stories of real women

Technology

Rapid Liquid Printing

Lifestyle

The brands coming out to support the LGBT community

Media & Entertainment

Abstract. The Art of Design

Retail

Target creates mini-musical spectacular for Christmas

Transport

Nissan creates mobile workspace

Lifestyle

Lincoln Motor Company taps Annie Leibovitz for campaign

Products

Braun creates hypnotic installation for London Design Week

Transport

BMW Films returns with an explosive short film

Fashion

Adidas Republic of Sports launches in China

Technology

Convert the world around you to Pantone with the new Pantone App

Experiences

Moleskine opens a cafe for creatives

Media & Entertainment

We're the Superhumans: Channel 4 returns with film series

Fashion

Activewear brand Lululemon expands into beer

Food & Beverage

Tiger Beer launches NYC pop-up store to showcase best of Asia

Products

P&G rolls out strong film in ongoing Thank You, Mom campaign

Products

Ikea launches brand collaborations

Fashion

Adidas creates sustainable shoes made from ocean plastics

Lifestyle

Google launches 360-degree interactive animated short film

Food & Beverage

Coca-Cola makes music with W Hotels

Finance

Save The Children returns with harrowing refugee film

Fashion

COS creates "show-stopping" installation

Fashion

Uniqlo aims for Utopia with flagship store relaunch

Food & Beverage

McDonald's transforms Happy Meal toy into VR experience

Technology

Samsung launches immersive brand experience store

Media & Entertainment

Lo and Behold: Netscout launches branded film at Sundance Film Festival

Fashion

Burberry teams with Apple to launch dedicated Music channel

Technology

Apple Watch creates blooming installation at Selfridges

Fashion

Nike targets women with luxury workout experience

Art & Design

HSBC soars in stunning elevator film

Hospitality

The Four Seasons Jet is the ultimate brand experience

Fashion

Savage Beauty: Iconic Alexander McQueen honoured in exhibition

Technology

Samsung film is a beautiful tribute to the power of technology

Fashion

Converse creates global exhibition to celebrate iconic shoe

Fashion

Leica and Moncler create Monumental exhibition

Technology

Wind Mobile celebrates human connections

Products

Lego targets architects with new product range

Products

GE revives iconic Moon Boot to celebrate role

Fashion

Nike's ‘Phenomenal’ World Cup experience

Fashion

Louis Vuitton Museum: a new level of branded art

Media & Entertainment

GQ to groom men with branded barbershop

Transport

BMW's iconic Art Cars Project launches global tour

Food & Beverage

Chipotle turns to literature in new project

Food & Beverage

Cornetto spreads the love with film series

Food & Beverage

Stella hits high note with Chalice Symphony

Finance

NRMA opens Crashed Car Showroom

Technology

Intel urges audiences to 'look inside' in film series

Fashion

Net-A-Porter launches glossy print magazine

Products

The Lego Movie hits cinemas worldwide

Food & Beverage

Guinness creates short film 'The Sapeurs'

Products

Dom Perignon and Jeff Koons create art

Fashion

Patagonia film celebrates the stories we wear

Fashion

Louis Vuitton's controversial exhibition

Food & Beverage

Chipotle wages war on Big Food

Technology

AT&T's brutal new film to stop texting and driving

Transport

BA tugs the heartstrings with Visit Mum film

Transport

Leave the world behind with Volvo

Technology

IBM & The World's Smallest Film

Fashion

Burberry merges digital and physical worlds

Lifestyle

Iconic landmark is on song with The Ship Song

Media & Entertainment

Bond's Skyfall is ultimate branded entertainment

Lifestyle

Red Bull goes Stratospheric

Transport

Audi showcases the future in Spheres

Technology

AT&T unveils transmedia experience Daybreak

Products

Google experiments with art and science

Technology

GE asks Australians for Two Words

Food & Beverage

Coca-Cola Moves to the Beat of London

theONEcentre

Strategy + Artistry

Ground Floor,
71 York St
Sydney NSW 2000
T +61 2 8096 9700
hello@theonecentre.com

for updates on The One Centre Group and our publications.

Back to top

theONEcentre

Strategy + Artistry