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  • Nike launching sustainable concept store in Seoul

    Nike launching sustainable concept store in Seoul

    After launching the Rise concept store last year to Guangzhou, China, sportswear giant Nike has unveiled a new version of the concept which will launch in Seoul, South Korea.

    The store will feature a new digital platform, Sports Pulse, which will seek to bridge the gap between physical and online retail and create an “immersive retail experience”, as well as an interactive RFID-enabled footwear table, Inside Track, where shoppers can compare product details by simply placing products on the table.

    Three new ‘experience zones’ will also be debuted in the Seoul store: The Sports Hub, which will help shoppers connect with sporting opportunities in the city; The City Replay, a space to showcase hyperlocal products; and The Huddle, a place for a group or one-on-one expert sessions tailored to their fitness goals.

    And, according to Nike, it does so while also boosting the business’ sustainability and circularity.

    “In addition to being among the first Nike stores to secure a LEED Gold certification, Nike Seoul is also the first in Asia to launch … Nike’s fully integrated service for recycling and donating gently worn footwear and apparel,” the business said in a statement.

    “Shoppers can drop off gently-worn shoes – and now, for the first time, apparel – to the Seoul store, where the products will either be recycled or donated to partnering organizations that help communities facing disasters and other challenging circumstances.”

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  • Nike and Adidas face supply-chain disruption after Vietnam factory closure

    Nike and Adidas face supply-chain disruption after Vietnam factory closure

    Taiwan’s Pou Chen, which makes footwear for companies such as Nike and Adidas, suspended operations at its plant in Ho Chi Minh City on Wednesday as COVID-19 curbs hit factories in the country’s business hub.

    Vietnam’s health ministry said in a statement that production at Pou Chen’s Pouyuen Vietnam factory would be suspended for 10 days.

    State media said 49 infections had been detected at the plant in Ho Chi Minh City, which is at the epicenter of the country’s worst coronavirus outbreak.

    The company did not immediately respond to an email seeking comment.

    Shares in Pou Chen, the world’s largest manufacturer of branded athletic and casual footwear, closed down 1.3% on Wednesday.

    After successfully containing the disease for much of the pandemic, Vietnam has faced a more stubborn outbreak since late April.

    Record infections and strict curbs on movement have left plants operating below capacity in northern provinces where suppliers for Apple, Samsung Electronics and other global tech firms are located, sources have said.

    Pouyuen Vietnam, the largest employer in the city with 56,000 workers, was unable to arrange for its workers to sleep at the site as required by authorities to allow the business to remain open, the health ministry said on Wednesday.

    Last year, Pouyuen Vietnam was ordered to suspend its production for two days after failing to meet local social distancing rules.

    Earlier this week, state media said authorities also ordered 29 companies in the Tan Thuan Export Processing Zone, an industrial park, to suspend production due to the outbreak.

    In the neighboring Saigon Hi-Tech Park, which houses international companies, more than 700 infections were detected in recent days and authorities ordered companies to shut units with infected workers, state media reported.

    Despite the latest outbreak, Vietnam has recorded far lower caseloads than many other countries with 36,605 infections in total and 130 deaths.

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  • Nike could run out of Vietnamese sneakers

    Nike could run out of Vietnamese sneakers

    The shutdown of two contract manufacturers in Vietnam due to Covid-19 could worsen Nike’s sneaker supply problems, a market research company has warned.

    The fact that South Korea’s Changshin Vietnam and Taiwan’s Pou Chen Corp in HCMC have stopped operating since last week “may exacerbate the supply chain disruptions that the company has had to deal with,” S&P Global Market Intelligence said in a report.

    Vietnam accounted for 49 percent of U.S. seaborne imports linked to Nike and its products in the second quarter, it said.

    Nike said in fiscal 2020 contract factories in Vietnam made roughly 50 percent of its branded footwear.

    There is a refocusing on China, the report said, pointing out that in the second quarter of this year, growth of U.S. seaborne imports linked to Nike from Vietnam was 6.6 percent year-on-year while it was 54.6 percent for China.

    A Nike spokeswoman said in an emailed statement: “We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of Covid-19.”

    HCMC has recorded over 39,500 Covid-19 cases since April 27.

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  • Nike supplier halts production at three Vietnam plants due to Covid-19

    Nike supplier halts production at three Vietnam plants due to Covid-19

    Changshin Vietnam, a South Korean shoemaker, became the second major Nike supplier to suspend production in Vietnam as it shut three of its factories near HCMC on Thursday due to a coronavirus outbreak.

    The factories in Dong Nai province, which employ nearly 42,000 workers, will remain shut until July 20, the Vietnamese government said in a statement, adding many of the 177 infection cases detected in the province were from the factories.

    Nike did not respond for comment outside U.S. business hours, while calls to Changshin went unanswered.

    On Wednesday, Taiwan’s Pou Chen Corp, which makes footwear for Nike and Adidas, suspended operations at its plant in Ho Chi Minh City. The plant will be closed until July 23 for “health and safety considerations”, the company said, adding it did not expect a major financial impact.

    Vietnam had until recently successfully contained coronavirus outbreaks, with limited disruption to its crucial manufacturing sector. However, since late April, it has seen record cases on many days this month, most of those in the commercial hub Ho Chi Minh City and its neighboring industrial provinces of Dong Nai and Binh Duong.

    The country has recorded 38,200 infections and 138 deaths overall, a vast majority of those since May.

    Almost all of Nike’s footwear is manufactured outside the United States. The company has said contract factories in Vietnam produced about 50 percent of total Nike brand footwear in fiscal 2020, but did not specify the volumes that came from Changshin or Pou Chen.

    The latest resurgence in virus cases could signal another hiccup for the world’s largest sportswear chain in 2021, after container shortages and U.S. port congestion held up Nike’s inventory earlier in the year.

    “Having the factories shut for one or two weeks for Nike is going to cause a massive problem for its supply chain,” China Market Research Group analyst Shaun Rein said, adding the shutdown would lead to price hikes.

    Nike also saw its China sales take a hit after calls to boycott global brands for their comments around forced labor in Xinjiang.

    Eclat Textile Co, a Taiwan-based garment and fabric supplier, has suspended production at its Dong Nai plant until July 17, it told the Taipei stock exchange.

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  • Nike sues company that made ‘Satan Shoes’ with Lil Nas X

    Nike sues company that made ‘Satan Shoes’ with Lil Nas X

    Athletic shoe maker Nike Inc on Monday sued a New York-based company that produced “Satan Shoes” purported to contain a drop of human blood as part of a collaboration with “Old Town Road” rapper Lil Nas X.

    Nike said in the lawsuit that the company, MSCHF Product Studio Inc, infringed on and diluted its trademark with the black-and-red, devil-themed shoes, which went on sale online on Monday. Lil Nas X is not named as a defendant in the suit.

    The shoes are customized Nike Air Max 97 sneakers that contain red ink and “one drop of human blood” in the sole, according to a website describing the 666 pairs of limited edition shoes. The back of one shoe says “MSCHF” and the other says “Lil Nas X.” her

    Several media outlets reported that the shoes sold out in less than one minute at a cost of $1,018 per pair. Lil Nas X said on Twitter he would choose the recipient of the 666th pair from social media users who circulated one of his tweets.

    Nike, in its lawsuit filed in federal court in New York, said the shoes were produced “without Nike’s approval and authorization,” and the company was “in no way connected with this project.”

    “There is already evidence of significant confusion and dilution occurring in the marketplace, including calls to boycott Nike in response to the launch of MSCHF’s Satan Shoes based on the mistaken belief that Nike has authorized or approved this product,” the lawsuit said.

    Nike asked the court to immediately stop MSCHF from fulfilling orders for the shoes and requested a jury trial to seek damages.

    Representatives for Lil Nas X and MSCHF did not immediately respond to requests for comment.

    The Grammy-winning rapper, 21, on Friday released a video for new song “Montero (Call Me By Your Name)” in which he dances with a character wearing devil horns.

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  • Nike sales crimped by pandemic and shipping issues

    Nike sales crimped by pandemic and shipping issues

    Nike’s quarterly sales missed estimates due to shipping issues and a pandemic-related slump at brick-and-mortar stores, and investors were disappointed by the world’s biggest athletic shoe maker’s full-year revenue forecast.

    Nike forecast “low-to-mid-teens” full-year revenue growth, falling just short of the 15.9% increase in sales that analysts were expecting, according to IBES data from Refinitiv.

    Nike shares were down about 3% in post-market trade.

    “I think the expectations for Nike into the call were very high with many analysts upping revenue and earnings expectations into the quarter,” said Ivan Feinseth, head of investment at Nike shareholder Tigress Financial Partners.

    Revenue rose to $10.36 billion from $10.1 billion, while analysts on average had expected $11.02 billion. The company said revenue from North America fell 11% on a currency-neutral basis because container shortages and U.S. port congestion held up inventory by more than three weeks.

    “We expect to capture this delayed revenue in the fourth quarter,” Nike Chief Financial Officer Matthew Friend said.

    U.S. container-freight traffic has slowed significantly in recent months due to COVID-19 outbreaks among dockworkers and safety restrictions aimed at stemming the spread of the virus. At the same time, ports are dealing with a cargo surge due to pandemic-led demand for bulk products.

    Nike’s net income nonetheless climbed to $1.45 billion, or 90 cents per share, in the third quarter ended Feb. 28, from $847 million, or 53 cents per share, a year earlier. Analysts were expecting earnings per share of 76 cents.

    In Europe, the Middle East and the Africa region, 45% of Nike-owned stores were closed for the last two months of the quarter. Currently, 65 percent of stores in EMEA are open or operating on reduced hours, Nike said.

    Rival Adidas ADSGn.DE said last week that it had reopened 95% of its stores after coronavirus lockdowns.

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  • Former Nike innovation chief joins speaker lineup for MarketingPulse 2021

    Former Nike innovation chief joins speaker lineup for MarketingPulse 2021

    A former senior Nike executive once named by Fast Company magazine as one of the most creative people in business, has been confirmed as a headline speaker at this month’s MarketingPulse 2021 virtual conference in Hong Kong.

    Greg Hoffman, global chief marketing officer at Nike from 2016-2018 before moving into the role of VP of global brand innovation until last year, now leads Modern Arena, a brand advisory group he founded for Fortune 500 brands, startups, and non-profit organizations.

    At MarketingPulse 2021, Asia’s premier marketing and branding conference, Hoffman will be drawing on his 27-year career with Nike to explain how innovation drives consumer experiences, envisioning the future of storytelling and the role of tomorrow’s CMOs.  Hoffman was a major strategic and creative influence for Nike at every major global sporting event, overseeing the launches of signature Nike products and innovations, and building the brands of its contracted athletes.

    A major part of Nike’s global marketing success was the strength of its experiential-anchored strategies which helped establish the iconic sportswear brand as one of the world’s pre-eminent storytellers. Hoffman was seen as a leading innovator in digital and physical brand experiences and broadly recognized for his role in the rise of marketing and design through that period.

    Under Hoffman’s leadership, Nike drove themes of equality, sustainability, and empowerment through sport. He was a member of the advisory board of the Nike Black Employee Network and as a member of the charitable Nike Foundation’s board.

    Another drawcard at MarketingPulse 2021 is Alves Huang, CEO, Qianxun (Hangzhou) Holdings, considered the current leading live-streaming e-commerce company in Mainland China.

    Huang founded Qianxun E-commerce in 2017 and in just four years his team has built the company into the country’s largest e-commerce live-streaming broadcasters. Among Qianxun’s successes was being recognized by Taobao Live as its number one e-commerce live-broadcasting agency, as manager of popular Taobao anchor Weiya Viya, who has more than 130 million fans on Chinese platforms.

    The company has long-term cooperative relations with more than 20,000 domestic and foreign brands and has already trained close to 40 anchors. At MarketingPulse 2021, Huang will explain the reasons why live-streaming e-commerce and short-video marketing is proving so successful in Mainland China.

    Putting purpose at the core

    Another high-profile speaker at MarketingPulse 2021 is Bryan Meehan, executive chair and CEO at Blue Bottle Coffee.

    A recent arrival to Hong Kong, Blue Bottle is a specialty coffee roaster and retailer headquartered in Oakland, California with cafes throughout the US, Japan and South Korea.

    Besides his passion for coffee, Meehan has always pursued a personal mission to do good for the environment. Both of his previous companies placed a premium on eco-consciousness – Fresh & Wild was one of the first organic food chains in the UK and Nude Skincare was an all-natural cosmetics business. While Blue Bottle maintains meticulous standards for roasting and brewing coffee (its Oakland location has a full lab to train new baristas), it is equally committed to sustainable business practices.

    At MarketingPulse 2021, Meehan will explain how to put purpose at the core of a business to connect brand values with today’s consumers, and share his success in marketing a globally renowned lifestyle coffee brand disrupting the industry.

    Register now to enjoy the privilege offer 55 percent discount (discount code: MPR02K5P) for Inside Retail readers.

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  • Nike Japan ad on bullying, racism sparks hot online response

    Nike Japan ad on bullying, racism sparks hot online response

    A video ad from Nike Japan against bullying and racism that features biracial athletes and other minorities, such as those of Korean descent, has prompted a sharp online response including calls to boycott the company.

    Japan has traditionally prided itself on being racially homogeneous, although successful mixed-race athletes such as tennis star Naomi Osaka are challenging that image.

    The commercial, “Keep Moving: Yourself, the Future,” released on Nov 30, shows several teen girls bullied in school over their race or other differences, but who ultimately find confidence through soccer prowess.

    One scene features a girl whose father is Black surrounded by fellow students, squealing and pulling her hair.

    The video, viewed 14.1 million times on Nike Japan’s Twitter feed by noon (0300 GMT) Wednesday, had racked up 63,000 likes but also a cascade of critical comments from many who vowed never to buy Nike products again.

    “Nowadays, you often see one or two people of different nationalities going to school perfectly peacefully. The one that’s prejudiced is Nike,” wrote one user named “hira1216”.

    Another asked, “Is it so much fun to blame Japan?”

    Although Japanese sports fans have celebrated Osaka, who counts Nike as a sponsor and makes a cameo appearance in the ad, she was once depicted as a cartoon character by another sponsor, Nissin, with pale hair and light brown hair, while a comedy duo said she “needed some bleach”.

    Nike Japan was not immediately able to comment on the response, but said on its website it believes in the transformative nature of sports.

    “We have long listened to minority voices, supported and spoken for causes that fit our values,” it added.

    “We believe sports have the power to show what a better world looks like, to bring people together and encourage action in their respective communities.”

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  • Nike gets local with new Nike Unite retail concept

    Nike gets local with new Nike Unite retail concept

    Adding to Nike House of Innovation, Nike Rise and Nike Live concepts, Nike introduces Nike Unite. Built to help locals connect more closely with sport, Nike Unite creates new in-and-out-of-store experiences, rooted in serving people the most valuable sport destination in their community.

    Read on for what to know about Nike’s latest retail concept.

    Nike Unite exists to serve and celebrate the people in each local community, and each store is designed to be a reflection of their heart and spirit. Consumers are welcomed by an in-store community wall highlighting the store team and local partnerships, and design elements throughout the space also look to tell the story of the community. From local landmarks to hometown athletes, the design allows the local residents to feel represented in the space.

    The products in each Nike Unite door are also reflective of what the community is interested in: locally curated, every-day essentials at the best price, matched with the newness of select seasonal offerings. Additionally, Nike Unite doors reflect Nike’s commitment to hiring people who live in the local community.

    In order to help protect the future of sport, sustainable offerings like reusable shopping bags are available at stores like Nike Unite – Namyangju, or at Nike Unite – East Kilbride, with takeback services like Nike Reuse-a-Shoe.

    Online or offline, Nike Unite doors deliver new ways to gear up and get moving together. Whether serving athletes in the digital spaces that speak to them, supporting local schools and nonprofits that give children more opportunity to stay active through Made to Play or participating in the Nike Community Ambassador program (which trains Nie store employees to be coaches), these measures allow Nike Unite doors to bring members closer to sport, and closer to one another.

    New Nike Unite stores are now open to the public in the following locations, with additional doors opening soon:

    Namyangju (South Korea)
    Portland, Ore. (United States)
    East New York (United States)
    San Antonio (United States)
    East Kilbride (UK)

    Coming Soon:
    South Chicago (United States)
    Atlanta (United States)
    Beijing – Jingliang (China)
    Beijing – Jingzang (China)

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  • Nike opens House of Innovation in Paris, France

    Nike opens House of Innovation in Paris, France

    Nike has opened the brand’s largest House of Innovation yet, in Paris, focusing on delivering a digital retail experience. Located at number 79 on the famous Avenue des Champs-Elysees, the House of Innovation 002 spans four floors and occupies a 2400sqm area.

    According to the company, Nike Paris will focus on four areas: uniting shoppers to a global sports community, innovative services and products for women, more kids’ experiences and seamless end-to-end consumer experience.

    “When consumers step into Nike Paris, they will experience our largest, most digitally connected and immersive retail concept in the world,” said Heidi O’Neill, president of consumer and marketplace.

    The House of Innovation in Paris features a wall-to-wall installation called Mission Control, connecting customers to the global sports community.

    Female shoppers can receive a fit recommendation using Nike Fit technology for any of its bras and information on their precise shape can be saved for future store visits.

    Nike Paris houses a destination for kids called Kids Pod, featuring interactive gaming and trial station such as a 360 virtual runners experience inspired by Parkour.

    “The strength of our digital portfolio combined with product innovation and amazing physical spaces will connect members to the community of sport and to one-of-a-kind experiences, serving them in an incredibly personal way,” O’Neill said.

    At the House of Innovation Paris, more than 85,000kg of sustainable material is woven into the fabric of the store design and display fixtures. The store is fuelled by a clean-energy wind farm in Spain.

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  • Nike introduces Nike Rise concept store in China

    Nike introduces Nike Rise concept store in China

    Sneaker giant Nike has introduced its new retail concept Nike Rise in Guangzhou, China. The latest international store concept joins the brand’s innovative portfolio which already includes Nike Live in Tokyo and House of Innovation in NYC.

    The Nike Rise concept store features personalized shopping services with a focus on digital experiences.

    Nike Guangzhou has piloted a new app feature Nike Experiences, which connects members to “weekly sport-minded activations” to inspire and enable them to move.

    “Whether members are connecting through the Nike App or joining in-store, they’re invited to experience a digitally enabled journey at this store that links them to the energy and activity of the city, and unites communities across Guangzhou through the power of sport,” said Cathy Sparks, VP, and GM of Global Nike direct store & service.

    At Nike Rise, customers can experience Nike Fit which helps customers find the best fit for any footwear using scanning technology. Nike by You is a counter where members can find personalized items with designs inspired by the city’s sports culture.

    The brand’s members in Guangzhou will also have access to Nike’s events and workshops hosted by the city’s network of Nike athletes and experts.

    According to the company, more Nike Rise stores will be launched in other markets next year.

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  • Nike sales in China stay strong despite Covid-19 outbreack

    Nike sales in China stay strong despite Covid-19 outbreack

    Nike sales in China surged 11 percent last year, marking the sixth consecutive year of double-digit growth in the market for the US sports brand.

    The growth was achieved despite the impact of Covid-19 with sales of the flagship Nike brand rising by 1 percent on a currency-neutral basis in the fourth quarter.

    Globally, the latest Nike results make for far more sobering reading. With 90 percent of its stores closed across the US, Europe, and much of Asia Pacific for as many as eight weeks during the quarter, sales plunged 38 percent to US$6.3 billion and the company reported a loss of $790 million. Asia-Pacific & Latin America sales fell 39 percent during the period.

    Digital sales, however, rose by 79 percent in the fourth quarter worldwide, to represent about 30 percent of the company’s total revenue, reflecting what the company described as an accelerated connection and engagement with consumers, based on a strengthened digital ecosystem.

    “In a highly dynamic environment, the Nike brand continues to resonate strongly with consumers all over the world as our digital business accelerates in every market,” said John Donahoe, Nike’s president and CEO.

    “We are uniquely positioned to grow, and now is the time to build on Nike’s strengths and distinct capabilities. We are continuing to invest in our biggest opportunities, including a more connected digital marketplace, to extend our leadership and fuel long-term growth.”

    Nike sales in China are recovering quickly with almost every store now reopen across the country. “Retail traffic continues to improve week-over-week with higher conversion rates as compared to the prior year,” the company said in its results announcement.

    “As physical retail re-opens, Nike’s strong digital trends continue, a testament to the strength of our brand and the investments we’ve made to elevate digital consumer experiences,” said Matt Friend, executive VP and CFO.

    Full-year results show Nike sales fell 2 percent year on year on a currency-neutral basis, due to Covid-19 impacting the second half. During the first half, sales were up 11 percent. Net income was $2.5 billion, down 36 percent.

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  • Giant Nike Thailand opens flagship store in Bangkok

    Giant Nike Thailand opens flagship store in Bangkok

    A giant Nike Thailand flagship store has opened in Bangkok’s Siam Center, with a footprint spanning more than 9000sqft.

    Designed to showcase Nike’s product innovation across multiple categories, the store also offers the brand’s first “Nike By You” in-store customization service in Thailand.

    Operated by Southeast Asian luxury and lifestyle retail specialist Valiram, the new Nike Thailand store offers a blend of physical and digital retail experiences for shoppers

    “Nike Bangkok at Siam Center exists to offer everyone the ability to make sport a daily habit, ensuring they are inspired and committed to staying active,” said director of Nike stores Southeast Asia & India Tarundeep Singh.

    “The top Nike offerings have been carefully curated for this community, and the store has been conceptualized with multiple touchpoints for a fully immersive and seamless Nike experience that is truly personalized and unique.”

    Services such as head-to-toe apparel fitting and footwear trialing are offered at the store to provide consumers with opportunities to deepen their connection with the brand and select products suited to their needs. Shoppers can also book one-on-one sessions with running experts and styling specialists.

    Valiram executive director Ashvin Valiram describes the new Nike Thailand store as a “truly unique and immersive experience that pushes the boundaries of retail, empowering our consumers to engage with Nike products in new ways”.

    “Creating a world-class retail environment is a Valiram hallmark and the opening of Nike Bangkok at Siam Center in partnership with Nike reaffirms that”.

  • 7-Eleven and Nike to launch co-branded sneakers and other footwear

    7-Eleven and Nike to launch co-branded sneakers and other footwear

    7-Eleven and Nike will collaborate to create a new sneaker featuring the convenience-store chain’s distinctive logo colors, but the shoes will most likely be released only in Japan.

    According to multiple blogs covering sneaker news, the new 7-Eleven and Nike SB Dunk Lows will feature a color-blocking design in orange, green, and red and will come with a three-pack of extra laces to match, each with stripes in the three logo colors at the tips. Nike’s own logo will be displayed on the sides of the shoe with 7-Eleven’s logo seen embroidered onto the lateral heel.

    The midsole uses Nike Air technology to ensure consistent optimal cushioning.

    While initial reports suggest that the shoes may only be available in the Japanese market, some sneakerheads suspect the launch may this time be a little more widespread given 7-Eleven’s rapid spread across new markets, especially in Asia.

    This is Nike’s second collaboration with the chain since its Christmas SB Dunk High Pro sneakers were released in 2008.

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  • Nike E-commerce sales soar during coronavirus crisis

    Nike E-commerce sales soar during coronavirus crisis

    Nike online sales soared 36 percent in the February quarter, compensating in part for a slump in sales across Mainland China which was in lockdown for much of January and February due to the coronavirus outbreak.

    The strength of online sales gave the retail giant a buffer from stalling brick-and-mortar sales, but it is not just in China that the effect is obvious.

    In an earnings call, Nike EVP and CFO Andy Campion said online sales in every global market grew in excess of 30 percent for both its core brand and sister brand Converse in the three months to February 28. That fuelled growth in both quarterly sales and earnings greater than the company expected.

    “From a digital capability perspective, the investments we’ve made to-date are now proving to be the foundation for our resilience amid challenges and they will be strengths as we emerge,” said Campion.

    “We are still in the early innings of Nike’s digital transformation, but the capabilities we’ve already been building for the future are proving to be the strongest pillars within our business today.

    “These are times in which strong brands get stronger and we’re confident that Nike will come back stronger than ever.”

    Campion told analysts that following its China experience, the company is now seeing similar trends play out in other markets where government lockdowns are resulting in shopping malls and stores being closed to help stem the spread of the virus. Now, consumers are shopping online instead.

    Nike is responding to the digital uptake by using tools that dynamically model demand, planning, allocation and pricing and using its app and membership program to reach out to consumers and encourage them to be active at home, while in lockdown. Those mediums are also offering products and services specifically targeted to various groups of consumers or individuals.