What: Nike is increasingly going hyperlocal thanks to the insight it gains with its app and digital ecosystem.

Why it is important: Nike becomes a complex partner for department stores as it is growing increasingly demanding in terms of conditions and does not hesitate to exit to open free standing stores. However, there might be room for micro-partnership, with a hyper local approach, helping department stores to both continue to have Nike in the brand portfolio and also generate traffic on a given customer profile.

The goal of Nike is to “blur the lines between digital and stores”. To do so, the Nike’s membership program (300m members) is central as customers remain in the Nike’s environment and benefit from highly personalized experiences (through an intense data collection process).

This is the reason why Nike is increasingly opening super-specialized, highly local, small stores in the communities where it senses potential. For instance, it opened a workout and wellness-oriented store in Williamsburg, NY, as it noticed high engagement in the area with its training app, without any physical touchpoint yet. This also allowed them to strike deals with local gym clubs to intensify their presence in the area.

Nike is planning to open 200 stores with such an approach, at a global scale, in the coming years.

How Nike execs think through its digital ecosystem