While the industry has focused on the negative aspects of Nike’s 44% inventory accumulation, I’ve explained to anyone who will listen that Nike’s ability to move that product through their own sales channels. Utilizing a promotional strategy will bring more buyers to the brand’s digital marketplace and to their own doors. Although the product is discounted, a cheap Nike product is a gateway drug for consumers to purchase more Nike product at full price especially as Nike implements their new GEL Strategy.
What is GEL?
- The Día de Muertos “Somos Familia” collection uses local expressions on footwear and apparel as the means to share culture across the world and invite everyone into sport.
When a team is new analysts will say you can’t tell what the team will become until they gel. The saying is rooted in the creation of gelatin. As the watery form of Jello turns solid, the shape takes form. Right now Nike’s Consumer Direct Acceleration appears to be hindered by supply chain and inventory issues, but there is an interesting opportunity for the brand to discover more about itself as various items are placed into the appropriate channels for clearance. A Unite Store filled with the correct items will sell through. Those shoppers will get Nike digital accounts and as Nike learns from the neighborhood store concepts, they will create products like the Somos Familia collection. Consider the Somos Collection in Nike Unite Los Angeles or San Antonio; Nike gets the best of every aspect of product creation: storytelling, community and product. This is why the Somos Collection features a more utilitarian aspect instead of a focus on sportwear. It’s an informed rollout. Nike is “GEL”ing. “Global Express Lane (GEL), which creates footwear and apparel based on insights from global cities and local sneaker culture.”
Express Lane originally showed up for Nike in 2015/16. At the time the concept was addressing a faster process for footwear production. The LunarCharge sneaker was produced using Express Lane. From concept to release was less than 9 months. Express Lane wasn’t discussed again until Nike’s 2017 Scale of Sport event. Since that time, there hasn’t been as much dialogue around their method of make and speed of production. GEL appears to be a shift in how the strategy is being implemented. This feels more like a marketing tactic to deliver products on a regional scale. The recent Air Force 1 40th Anniversary celebration may not be listed as GEL, but it is. The Memphis version of the campaign has equated to discussions reverberating throughout the area around the importance of the Air Force 1 to the jookin community. Nike has completely nailed down the market in the Tri-State area and in doing so Nike’s inventory issues have directly shaped sales at local Foot Locker stores. Visits to Nike’s suite of stores in Memphis have grown considerably and sales are down across the board as Foot Locker stores face the reality of what Nike promotions do to other brands and retail accounts. GEL and how it will be used is an important point of reference that should be monitored.