nikeid
Your Colors. Your Style. Your Shoes.
NIKEiD: A business turnaround
NIKEiD was started in 1999, when personalization was for the privileged. It brought customization to the masses. Fast-forward to 2015, the model hadn’t changed but 15 years of increased choices changed consumer expectations. The NA business flatlined and my team was responsible for reviving it.
Challenges:
An outdated pricing model. A cost-plus pricing strategy. On average $40 markup on current shoes.
Inline expansion. Our non-customization (inline) business was flooding seasonal styles with color further eroding NIKEiD’s proposition.
Lack of freshness. Assortment didn’t integrate with the inline categories to benefit from seasonal category energy drivers.
Turning around this business required, edit the product assortment to amplify what’s working , bring fresh products and stories to the forefront, updating the pricing model and better category integration.
Actions:
Simplified the assortment by cutting unprofitable skus.
Executed a study to better understand consumers’ willingness to pay.
Updated the pricing model to consumer-value based vs cost-plus.
Re-focused marketing towards social media with NYFW collaborations
Product improvements. Released a limited edition Lebron 25K-Points shoe, HTM collection, Pendleton x NIKEiD collab, and simple customization experience to drive product energy.
Test augmented video mapping to retail studios
Launch a Pride campaign tied to the 2016 Rio Olympics
Drive influencer energy to NIKEiD Bespoke at 21Mercer
Results:
Reduced mark up to $20.
Removed high-cost, low value customization features and reduced our cost base by -250 Bps .
Reduced the wait time through simple customization from 4 weeks to 7 days.
Turned around NIKEiD from $xxxM to $xxxM (-5% to +22% YOY)
NIKEiD bespoke studio experience @ 21 Mercer
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NIKEid video mapping customization
