How Brands Like Nike Are Implementing Responsive Operations With Data-Led Initiatives

How Brands Like Nike Are Implementing Responsive Operations With Data-Led Initiatives
Fashion & Apparel

Retailers and brands are driving sales by marshaling advanced digital technologies and proprietary data to design products and store experiences tailored to fit specific locations and customer lifestyles

PSFK
  • 6 november 2018

In today’s retail landscape, the pace of change is rapidly accelerating. Existing operational processes that rely on long-term pipelines, approval and siloed decision making are no longer sustainable. Companies are sitting on a wealth of data about their shoppers, their stores and the broader marketplace, but they often lack the internal capabilities and creative insight to put it to use.

According to research, brands that create personalized experiences by integrating advanced digital technologies and proprietary data for customers are seeing revenue increase by 6% to 10%, two to three times faster than those that don’t. Accordingly, successful brands and retailers are differentiating themselves with data-led initiatives that enable them to quickly adapt or even anticipate shifts to be first to market with new products and/or better serve the needs of their customers. Here’s how major players like Nike and Adidas are staying ahead of the game with data-driven tailoring:

Nike By Melrose
Sportswear retailer Nike stocks products in its L.A. concept store, Nike By Melrose, based on the shopping preferences of local users. Using data collected from its NikePlus app, the store’s merchandising mix is dictated by items local consumers are buying. Every two weeks, the store will add new inventory based on the local market, much faster than the brand’s usual turnaround of 30-45 days. Shoppers will also be able to leverage the data to help inform their choices, browsing on in-store screens to see the most popular shoes in a given category for consumers who live in zip codes near the store.

Adidas Speedfactory
Sportswear retailer Adidas designed a collection of running shoes that are designed to cater to the unique needs of runners in London, Paris, New York and Shanghai. Analyzing years of sports science data on running movement, Adidas was able to create a series of sneakers that were crafted specifically for the needs of local runners in each market, taking into account each city’s unique terrain and weather. The sneakers are also equipped with an NFC chip in their tongue that allows them to sync with runners’ smartphones and offer access to exclusive content and early access to new releases. By manufacturing these sneakers in the Adidas Speedfactory in Atlanta using digital manufacturing techniques, Adidas can design shoes that better fit the needs of athletes and also reduce production in factories in Asia.

Stitch Fix
Online personalized styling service Stitch Fix uses data analysis and machine-learning algorithms in order to adapt and improve its selection of menswear as well as the logistics behind its monthly service. The data technology the company uses is able to track what a customer is in the market for, what they purchase, what they don’t keep, and why. This information is then used to quickly adapt strategies if needed. Stitch Fix additionally employs machine learning and historical data to determine how much of a single product to order, where to sort new product fulfillment, and when to donate old styles. As customers continue to receive monthly shipments, every item they decide to keep or send back presents a new data set.

These are just a few examples—for the full report detailing how retailers and brands are enabling responsive operations using data-led initiatives, see PSFK’s Future of Retail 2019 report. 

In today’s retail landscape, the pace of change is rapidly accelerating. Existing operational processes that rely on long-term pipelines, approval and siloed decision making are no longer sustainable. Companies are sitting on a wealth of data about their shoppers, their stores and the broader marketplace, but they often lack the internal capabilities and creative insight to put it to use.

+Adidas
+analysis
+apparel
+Asia
+china
+data
+Delivery & Logistics
+Features
+fitness
+future of retail 2019
+merchandising & curation
+nike
+report
+Shopper education & assistance
+Shopper Marketing & Promotion
+sport
+Stitch Fix
+store experience & design
+trend

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