In addition to educating its customers in regards to shoe size and, hopefully, helping a greater number of people to avoid injuries caused by wearing poor size shoes, this technology could also be a financial advantage for Nike, which occupies a dominant position in the field of sports shoes.
According to NPP Group sports analyst Matt Powell, Nike is the No. 1 shoe brand in the United States in terms of sales, accounting for about a third of the market, ahead of Adidas, with 11% of the market, and Under Armor. It also remains very hot among teens with money to spend.
"Nike is not in danger of dropping the number 1 by any means whatsoever," Powell said. "The consumer of today is looking for unique products," he said of Nike.
That said, its competitor Adidas, which still holds a smaller share of the US market, has recorded faster growth in sales in the United States. During its last quarter, Adidas announced that its sales in North America had increased by more than 11%, compared to a 7% increase in Nike's sales in the region. Adidas is also preparing for a collaboration with singer Beyonce in the field of sneakers, which should give momentum to the United States.
In 2018, 64% of Nike brand revenue came from shoes. Footwear sales totaled $ 22.27 billion out of total sales of $ 34.49 billion. This does not include sales of Converse, which operates as a separate business within Nike. Therefore, Converse sneakers will not be compatible with Nike Fit.
Footwear sales rose 6% last year, off currency effects, thanks to the strength of the race, Nike said. But that figure was lower than the 8% growth in the shoe's footwear business in 2017, Nike having not sold as many Jordan shoes in 2018.
When he sneak tests Nike Fit in three markets: Seattle, Pasadena, California and Dallas – Martin The company noticed that Nike Fit users had increased their conversion rate to find the right size, which meant they were more likely to leave the store with a bag in their hand. They were also more likely to come back later and buy another pair of shoes. Nike said that returns were down in these stores. And employees spent less time browsing the reserve to gather other sizes.
It can also help Nike store the right inventory. Martin explained that Nike, like many footwear brands, usually ships loose shoes in different geographical regions on the basis of a "curve" standard long predicted by the number of people wearing each shoe size. But he said that this curve is not as accurate as it could be. So it's easy for companies to end up with too many size 10 sneakers in a market, which is really the type of shoes that most of those people have to wear, for example. The data collected from Nike Fit should help the company to create its own curve.
"We have never received data to understand how accurate this distribution is," Martin said.
Finally, Nike Fit should help Nike expand its membership base, which now counts more than 150 million people worldwide. A Nike membership is free to sign up and gives members quick access to new product launches, a birthday award, the opportunity to chat with athletes for tips on products or to get them Training and workout sessions from the Nike app. The company said it was on track to increase the number of its members to 300 million people, the latter spending on average 40% more than their guest guests.
During the six month test period of Nike Fit in three stores, Nike said that this service was the most powerful lever for boosting subscription memberships that it found until the end of the year. ;now.