Brief:
- Nike expanded its NikePlus loyalty program to let members earn free Apple Music subscriptions, exclusive playlists, early access to new products, on-demand exercise training and other personalized promotions for completing suggested workouts or buying products, per an announcement. NikePlus members can also unlock content on the Headspace app for guided meditation and mindfulness and gain credits from the ClassPass app for guided workouts.
- NikePlus members who buy the Epic React Flyknit running shoes in Nike’s exclusive "white fusion" color will unlock up to four months of free access to Apple Music, the streaming service from the maker of the iPhone. The shoes are now available for $150 exclusively for NikePlus members in the U.S. and will be available to non-members on Feb. 22.
- NikePlus membership is free on the web and the Nike, Nike SNKRS, Nike+ Run Club and Nike+ Training Club apps for iPhone. NikePlus doesn't use a points system to urge shoppers to spend more. The program rewards users based on their interaction with the app and making certain purchases.
Insight:
Nike has a goal of tripling enrollment in its membership program in five years from 100 million users now, a goal that will heavily rely on its mobile platforms for expanded reach, as the company outlined at its investor day on Oct. 25. Adam Sussman, chief digital officer of Nike, said NikePlus members who shop on its mobile apps spend 3x the amount that people spend on Nike.com. The company in 2016 created a chief digital officer position to help reach a sales goal of $50 billion by the end of 2020, per Investor's Business Daily.
The Nike Training Club was the No. 1 workout app in the U.S. and Europe, leading users through 1.8 million workouts a month. Its Nike Run Club is the No. 1 running app and has led people through 50 million miles of running a month, the equivalent of running around the earth 2,000 times, the company said. The focus on mobile is a crucial part of future growth, Sussman told investors. More than 50% of Nike Direct digital sales come from mobile experiences in the U.S.
Meanwhile, Nike last month revealed the attire it designed for Team USA athletes to wear when they're on the medal stand at the 2018 Winter Olympics, which starts on Feb. 9 in Pyeongchang, South Korea. Nike created special red, white and blue versions of both the men's and women's NSW Gaiter Boot. The company started selling the entire Team USA Medal Stand collection at nike.com and other select retailers, per a statement.