Nike by Melrose is the first Nike Live concept store, built for and inspired by LA-based NikePlus members. More neighborhood-specific locations will open in other cities around the globe, including Tokyo, next Spring and beyond.
Source: Nike’s New Store Was Located And Stocked By You, Los Angeles
When I transcribed the Investor’s Day last year one segment caught my attention. As a former Apple employee and a former Apple tech, Apple represents the epitome of cult. In other words, against a person’s better judgement they will spend more money on an Apple product although there may be a comparable or better, less expensive product available to the customer. This is because Apple realized something 20 years ago that remains true, the experience in shopping often weighs more than the product itself, but if the experience is tied in with a product that screams modern style and technology the customer will pay for the perceived benefits without questioning the pricetag.
The section of Investor’s Day many people overlooked, I made notes in parenthesis:
Nike App at Retail live this spring (AR) will instantly recognize you when you walk in store. You will be able to check out via the app.
Nike Hyperlive leverages Nike data for customers based on local analytics. Sneaker Bar (Nike’s going Apple!!)
Nike Experts on Demand provides one to one (Apple) service. One to One drives conversion. (Comparable to genius bar and one to one from Apple).
Note my notes (pun intended). As soon as I heard what the brand would be doing it pointed directly towards my experience working at Apple. As a matter of fact the wording was pulled directly from Apple. I wrote several years ago as retail stores began closing that stores that didn’t have private label needed to update their Customer Experience in order to offset the work that was going to be done by “brands”. This new concept by Nike scales down the retail model for Nike and brings it to a neighborhood platform as opposed to the large factory and clearance outlet format. It’s exactly what I stated needed to be done by other brands and retail shops.
The Sneaker Bar makes trying on and buying footwear quick and easy. NikePlus members can redeem product or rewards by using their member pass at the NikePlus Unlock Box (essentially a digital vending machine). The Dynamic Fit Zone has a lounge to relax in, rooms where Nike Experts can offer styling tips and a Nike Trial Zone (with a treadmill) to really put product to the test in.
I was writing with a retail manager on LinkedIn and he made it a point to bring up customers who aren’t utilizing apps and are cash based customers. Nike’s initial push is to those customers within its network already (what I call conquering your own region first). They’ve already established that those people spend 3x’s as much as customers outside of the app. It would appear that Nike is leaving the customer who is a “cash” customer behind. I made a point to say that most “cash” customers won’t use the app or online services because in many instances they don’t want a package being left on their stoop, doorstep or porch. Nike Live may be the natural progression, but Nike realizes that they could be isolating themselves from a considerable segment that has made Nike the machine it is in North America. The brand has already considered this and once again they’ve begun implementing another service on the international market that could easily be replicated for those cash customers who have some hesitation in using the app:
Can Nike.com Japan’s New Delivery Service Catch on in the United States?
When the market begins to understand just how many projects Nike has taken on then there won’t be any surprise when the brand is capable of shifting quickly to different strategies. Nike could quite possibly become the real Apple of fashion. The brand is only one small shift from creating content for consumption. The evidence is in right in front of you if you stop and think about it. If you don’t know what I mean, ask me. You can use the source link to read more about Nike Live Los Angeles.
