Nike continued to invest heavily in its digital transformation across the supply chain, allowing the company to respond more quickly to changes in demand. It added RFID chips to products and staged faster procurement processes for raw materials, reducing lead times. At the end of the supply chain, it improved product personalization for Nike Plus users, adding rewards for the most active members of the club through advanced algorithms.
New users are coming on board for the Nike app at a double-digit rate. The app is being launched in Japan in the present quarter, and it will soon feature editorial contents. The company is learning some interesting insights through the connection between physical and digital customer activations.
Nike Plus members accounted for more than 50 percent of the transactions at Nike's Houses of Innovation in New York and Shanghai. Traffic and revenues through the SNKRS app jumped by a triple-digit rate, with 17 of the top 20 product launches achieving 100 percent sell-through. The launch of the retro Jordan II Concord shoe was the biggest ever and sold out in a few hours. Express Lane products made up more than 10 percent of total revenues, with rates of more than 20 percent in EMEA and more than 50 percent in China.
The management stressed that the company is only in the early stages of its Consumer Offense initiative, so the upside remains strong for the next years.
The management dwelled on the long string of innovative product releases made during the latest quarter, including the extension of Jordan brand's portfolio and of its women-specific models of shoes and apparel. Sales of women's products outpaced those of the men's range, especially in Greater China, Asia-Pacific and Latin America. At the same time, the company has reduced the number of SKUs selectively and used consumer insights to update products and colors.
Nike is bringing new dimensions to the Jordan brand, with a more balanced mix of performance and refreshed retro and the introduction of a women's line. The recent launch of the Jordan apparel line for the Paris-Saint-Germain football team was a tremendous success. Reportedly, Nike sold more than one million jerseys, placing the French club in fifth place after Real Madrid, Barcelona, Bayern München and Manchester United.
The next financial year will see the introduction of an “incredibly comfortable” new cushioning technology for running shoes that should help attract new participants to the sport, as well as some new footwear collections retailing at under $100 per pair.