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It’s all about the Athlete, always has been, always will be…
What would you say defines Nike as a brand?
Two key things - innovation and inspiration.Nike is the brand that introduced Air technology, Shox, Dri-FIT and we are always trying to offer the consumer something different – from a square-headed driver in golf, to tinted contact lenses for sports performance. But they have to work – they can’t just be gimmicks.
Then our communications have always been a source of inspiration: At first with ‘traditional’ TV advertising that built the brand and the ‘Just Do it’ attitude, but now we are also investing heavily in digital communication – an immensely powerful tool. In partnership with Google,we created www.Joga.com in the build up to the World Cup last year - a kind of My Space for Football,well worth checking out.
In conjunction with Apple,we released the Nike+iPod sports kit last year, enabling runners to log and monitor their runs via itunes and the www.nikeplus.com website. Think of a giant online community of runners all able to challenge each other, set themselves goals they can monitor online and get real-time feedback on their runs through their headphones while listening to music. This has the potential to shape and redefine the Nike brand and even running itself.
Any planned launches?
Our Nike + Technology will be developed further over the next year.And in June we are set to launch the Total 90 Laser Football boot. Football is a key area for us and we have led the way with different boots for different types of player.We recently introduced the ‘10R’ signature range for Ronaldinho,which has proved very successful.
Also, watch out for our current ad campaign for Nike Pro which will be a focus for us as a new category of sports kit.
As well as football,we also want to keep producing products in the key areas that made the brand, such as running.We’ve also redefined the way we look at women’s product and their approach to sport to include everything women do at the gym.
What do you think of celebrity endorsements?
There’s a big difference between celebrity endorsement to sell a non-related product and the kind of player or team sponsorship that we operate. The athletes we use contribute to the brand’s personality and to the product development process. The attitude of the athlete is part of that too. Our aim is to create the right products, to mix with the right attitude.
In terms of endorsements, our sports marketing gained pace in the early 70’s and 80’s, through people like John McEnroe, then of course there was Michael Jordan. Today, Tiger Woods is creating the same kind of stir for Nike Golf – personalities like this epitomise the character of the brand.“It’s all about the athlete.Always has been always will be” – the words of Phil Knight [Nike founder] are as relevant now as they were then.
So if you look at the UK today,we’ve got Wayne Rooney, Cristiano Ronaldo, Cesc Fabregas, Joe Cole,Aaron Lennon, Andy Farrell, Paula Radcliffe – athletes whose style and talent communicates around our brand.
The idea of being able to customise trainers is a brilliant one. Tell me about it.
It’s called Nike ID (www.nikeid.com ) a customisation service available online and, eventually, instore. It allows the consumer to choose exactly the colours they want and to personalise shoes and other products with logos and id tags of their choice.
A lot of retailers out there are looking at what they can offer their customers that’s different.Nike ID is both a revenue driver and statement for the brand. This is a premium product delivered in premium packing. That said, the prices are not exorbitant.
How much of your revenue comes from online sales? Well we’ve recently launched www.nikestore.com to retail online, but this is just one part of our wider mix and wholesale – whether through multiples or the independents - remains at the heart of that.
We work with some of the key online retailers – they represent 5-10% of our total UK business, but more and more of the ‘traditional’ retailers are also building their online presence and the amount of business they do via the web too. In terms of sales to the independent, the Nike.net system allows real-time information on what’s available etc.
How has your relationship with the independent changed over the years?
Our relationship and the way we interact with our independent customers over the years has massively evolved.Nike has experienced tremendous growth within the UK, however, this can present some challenges along the way. For example, as an organisation we remain fairly lean so at times we cannot service every individual Nike stockist in the way we did when we were a far smaller organisation, therefore we work very hard to find innovative solutions to address this and leverage our companies strengths. For example we have rolled out Nike.net online ordering service so that the retailer can interact with Nike anytime they choose to, and not rely on the traditional sales representative calling and scratching the pad, this frees the retailer to manage their time more effectively.Nike.net has many additional benefits; it allows direct access to real time product availability with no minimum order quantities and is a vital two way communication tool to enable the retailer to manage their Nike account.
Can you offer any advice to the independent?
Well, it seems logical for independents to join a buying group that can offer strength in numbers and additional commercial opportunities that the independent may not be able to access on their own. But the biggest point of positive difference between the independents and multiples, is the personal service they offer. These people are involved with, and have a real passion for sport in and around their community. Nike has absolute faith in the independent’s ability to sell its product well. They are a key part in the chain of getting our sports performance products to the consumer and a key part of sport in this country.
