Jumpman LA Is The Next Stage of Nike’s 80/20 Strategy

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The new downtown Los Angeles space will welcome athletes and creatives for a full Jordan Brand immersion.

Source: Introducing Jumpman LA

Nike is like an ocean disturbed by an earthquake beneath the surface. You can’t see the earth shaking, but a tsunami is the result. I’ve been writing a short book on how Nike’s CDO is shifting retail. In the book there is a hypothetical introduced that I termed the ‘Apple Play’ (When companies begin to see the benefit of utilizing their own platforms to deliver products, but work with a select few to reach customers in areas they don’t yet have a door).

I derived the idea of the Apple Play while transcribing Nike’s Investor Day in 2017. At the time the company was delivering their strategy to reach 50 Billion dollars. As I transcribed the day I began to see striking similarities to Apple. This Jumpman LA store feels like the second stage of a strategy that I can see growing in scale quickly. Not the same size as the 24,906 square foot LA store, but smaller versions in Key Cities across the U.S. The fact that it’s in conjunction with Nike’s largest wholesale account speaks directly to my hypothesis that Nike is going to move towards smaller scale stores that will be in direct competition with small retail chains.

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Jumpman LA will have collaborative ‘cowork’ styled spaces for curating, concepts and sharing.

What is so striking in the source for this article is not the beautiful retail space layout, it’s the description of how this space will work:

Jumpman LA is anchored by three core spaces that invite interaction and engagement. The state-of-the-art Flight Lab offers one-to-one diagnostic and performance testing, as well as product customization. The store’s twin Flight Lounges are designed to showcase brand storytelling and local artists alike. Finally, on the rooftop, the Flight Deck will host local Jordan-Brand-sponsored schools and others on its regulation-size court.

In the book I’m working on I discussed how Nike’s Consumer Direct Offense as described on Investor’s Day was a reflection of Apple. When I worked at Apple in 2007 there was a program named One to One. That program provided individual assistance to customers who signed up. Apple discontinued One to One in favor of “Workshops” in 2015. Nike has obviously looked to Apple for a source of ideas as in 2016 Apple’s Tim Cook became the Lead Independent Director on Nike’s board.

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When you read the quote above the wording is a direct reflection of Apple’s One to One. In the picture above there is a full basketball court on the top floor of Jumpman LA. The space Nike has created is an interactive, curated experience, just like Apple. It may not be a reach to think that if Nike is looking to gain more control of its product reaching the consumer that the brand begins to look at scaled down models of its flagship store concepts. If they are working with Footaction and Foot Locker locations there could be an interesting turn of events for wholesale accounts.

This is something to watch and keep an eye on. For now you can use the source link to view more pictures of the new Jumpman LA. Below is the Flight Lab; a fitness and training area for athletes to utilize and test footwear and apparel in a “1:1” setting. Nike is officially a tech company.

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