Nike

Nike Sees Huge Rise In Online Sales, May Consider Permanent Shift To Digital Business

Sportswear giant Nike has made a healthy comeback because of the huge rise in online sales. After the coronavirus slump, the digital sales of the US company increased by 82 per cent during the June to August quarter. Nike has posted revenue of USD 10.6 billion as it has seen improvement in several markets including China. The company saw a downfall of more than a third as it tried to survive during coronavirus induced lockdown. Buoyed by the revenue growth, Nike chief executive officer John Donahoe said the shift to online sales could soon be a permanent trend. “Digital is going to be new normal and the consumer today is digitally grounded and they will not revert back,” Donahoe said.

Sales of the sportswear company are growing in all its major markets including Japan, China, South Korea, and the United Kingdom. The company has however witnessed a downfall in its North American market. The company is now apparently working on changing its strategy and therefore using its shopping apps and its website to release limited edition footwear. The transformation of selling its products directly to customers has been going on for the past few years. This has reduced its retail partners and store presence. The company is very cautious about the number of people who can visit its store. Like several other retailers, it has fixed the number of customers who can visit the store in order to curb the outbreak of the coronavirus.

Nike CFO Matt Friend said that digital growth has helped Nike recover fast and the company has been focusing on normalizing demand and supply of the market. The app of the Oregon based company has witnessed a huge jump of 150 per cent during the quarter. Run app of the company, specially designed to provide digital workouts, has also seen an increase in the demand. Meanwhile, Rival Adidas said that its business has improved. Similarly, yoga pants maker Lululemon has posted a 157 per cent jump in its online business.

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