Nike (NKE, Financial), based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. It is one of the leading athletic apparel and footwear enterprises and has its presence in approximately 190 countries around the world.
All set to expand women’s business
NKE is currently focusing on expanding its women’s business segment. Amy Montagne has been appointed VP, GM of NIKE Women’s. Montagne will be responsible for expanding NIKE’s brand position with women and continuing to drive the current momentum within NIKE’s women’s business.
“With such an explosion of creativity in sport and a growing lifestyle that seamlessly integrates her run and workout with the rest of her day, Nike has never been better positioned for growth,” says Amy Montagne, VP/GM of Nike Women. “Today we’re introducing the most comprehensive and innovative women’s collection Nike has ever created.”
NKE expects that its women’s business revenue may grow up to $7 billion by 2017. The company garners about $5 billion annually from its women customers. NKE has targeted to push its sales up by 40% in the coming five years.
NKE has already started rolling out women’s stores, the most recent in this league being the one opened in Newport Beach in California. This store has its personal styling and fitting amenities. “The NIKE Brand is expected to deliver nearly $10 billion in incremental revenue by Fiscal 2017, and our apparel, women’s and ecommerce businesses will support this growth,” said Trevor Edwards, president of the NIKE Brand. “Over the last three years, the NIKE Brand has grown close to 40 percent, and we will continue to innovate and grow by focusing on products and services that capture the imagination of our consumer and help athletes perform at their highest potential.”
Women all over the world are choosing to work out and run with Nike. The Nike+ Training Club App for women has been downloaded 16 million times and 9 million women have downloaded the Nike+ Running App. The Nike+ digital community is a global ecosystem of inspiration and optimism, using knowledge and community to motivate. By offering athletes at every level a better understanding of themselves, Nike serves as the direct link between the female consumer and her goals.
Sport and fitness are powering a new lifestyle shift for women around the world,” says Mark Parker, president and CEO of NIKE, Inc. “Our relationship with our digital community of 65 million women, coupled with great product innovation, is driving our momentum and we expect to add another $2 billion in revenue to reach $7 billion by FY17.”
To end
Today, Nike continues to seek new and innovative ways to develop superior athletic products and creative methods to communicate directly with their consumers. NKE is a hit among the brand-conscious consumers, and customers don’t mind paying extra for this brand. It definitely lives up to its slogan, “Just Do It.” Nike’s tremendous financial performance will help the company stay a step ahead of its competitors.
It has already witnessed tremendous success in the North American region. The Asian countries hold tremendous opportunities for this company. With robust innovation, continuing research and development activities Nike is bound to create shareholder returns.
NKE has always liked being on the top and has diligently worked towards it. Innovation has clearly being a part of its strategies. No wonder NKE is pushing its resources to woo its women customers. It is capturing broader fashion trends in the women’s fashion market.
The incline towards stylish and comfortable clothing, rise in disposable levels of income and a sudden increase in fitness-conscious people will boost the company’s growing popularity. The next few years may see the company shifting its focus towards other stylish accessories like sunglasses, etc. Innovation has always played a key role in Nike’s success.
Working out will never go out of fashion, and women play an integral part in fashion trends. NKE has a good future as regards the women’s business segment. NKE has tremendous growth potential in this area.
