In the current retail climate, online and offline are merging faster than most imagined possible meaning brands are being forced to re-invent to survive. A vast majority of retailers are at a significant disadvantage to brands like Amazon – both in terms of volume and their ability to capture data which is both accessible and actionable.
With ambitious growth aspirations, Nike are constantly looking for methods to serve the retail consumer in new and considered ways. After formalising a partnership with Amazon and recently announcing that they are hoping to sell through a shoppable Instagram page, Nike are strategizing the best way to approach their physical and digital opportunities.
Since Instagram introduced the e-commerce feature in November and Amazon announced their Whole Foods acquisition, these platforms have emerged as key sites of product discovery and retailers are looking for ways they can drive conversion.
For retailers like Nike, creating compelling and buyable content across social media can drive massive results. A rise in shopping across social media also means that brands’ ecommerce shopping pages are becoming increasingly blurred. ‘Social shoppers’ visit apps like Instagram as part of their everyday browsing, using images from brand feeds to inspire their purchases.
With over 700 million monthly users and an emphasis on highly filtered visuals, the app is perfectly suited to both fashion and lifestyle brands. Mobile based purchases are also becoming more popular, especially amongst younger consumers who have shown a willingness to spend through portable devices.
Research has revealed that a post on Instagram will entice 68% of Millennials to consider buying a product, and will actually convince 54% to purchase. Nike, therefore have recognised the need to roll out a strategy which removes friction from the transaction between discovery and purchase.
The mix of fashion and function that is at Nike’s core is a perfect match for Instagram, whose users are likely to care about their appearance. A quality Instagram presence is no longer just nice to have, it is an essential element for success and this retail update will allow Nike to connect better with Millennials who cite Instagram as a prime shopping destination.
Currently, brands can tag their photos with links to individual products, however Nike plan to seamlessly offer products to customers on Instagram. The page keeps consumer attention within the social network, driving commerce via the Instagram app.
This shopping experience is symptomatic of the Nike brand, and this radical evolution proves that they are able to sell across several channels, using each to their advantage. They are aware that selling online is not about beating Amazon, but about co-existing successfully.
Nike are able to use the full media mix to their advantage, providing consumers with a more agile and digitally native approach to retail. With a 10% rise in Nike stock, their deal with Amazon completes and extends their consumer reach across a wider global audience with a much more diverse distribution reach. From OOH advertising in collaboration with Sports Direct and experiential flagship stores to a shoppable Instagram page Nike prove that if you really know your varied audience, you can reach them all.