Analysis Of Nike'S "Retail Concept Store" In The World

With the official opening of Nike unite in November this year, Nike's "retail concept store" in the world has developed into a fourth generation. Many people regard it as another marketing gimmick of Nike, a "marketing company". However, combined with the different themes of each generation of concept stores and the consumption environment when it was first launched, Nike is more likely to respond to the current consumption trend in the way of offline stores.

The so-called "concept store" is actually a store that aims to convey brand culture and enhance brand value. Concept stores, which are different from the design and decoration of other retail stores, bring consumers into specific situations and give them totally different shopping and sensory experience. They can be regarded as "cultural and art exhibition hall" of brand under a specific theme. Therefore, they often develop into online stores to attract consumers to punch in. Retail concept store is not a new concept. It is very popular among luxury goods, fashion brands and even automobile brands.

Around 2017, retail concept stores have gradually become the "experimental field" for brand new retail, and more and more shoe and clothing brands have started the exploration of online and offline combination. Adidas, puma, andrma and other international brands have opened concept stores in China, and Anta, Li Ning and other domestic first-line sports brands are also trying in this regard.

However, in the past two years, with the brand's increasing emphasis on offline consumer experience, there is no obvious difference between retail concept stores and brand flagship stores and direct stores. On the contrary, asset light "flash stores" have become more and more popular among brands as they replace concept stores. For example, Anta launched the "flag style" last year, which has set up flash stores in three places, attracting many consumers to punch in the store in a limited time.

In contrast, each generation of Nike concept store is to explore and materialize the trend and consumption trend. From 2018 to now, more than two years ago, Nike has brought four generations of retail concept stores to consumers. It should be noted that these four generations of physical stores do not mean upgrading, but rather the comprehensive layout and joint promotion of Nike. The details are shown in the following figure:

The birth of the first generation of Nike live is mainly to cooperate with its digital marketing strategy of DTC to create a "experimental field" of personalized service for consumers combining online and offline, which is quite water testing nature, and has laid the benchmark and threshold for the subsequent concept store building.

The launch of such stores comes at a time of the cold winter of physical retail in the United States. In 2017, a wave of store closures swept through the U.S. retail industry. In that year, more than 8000 stores were closed, but only a little more than 5000 new stores were opened. In 2019, the difference between the number of stores closed and the number of new stores opened in the United States has reached 4930, setting a record again. This year, with the external factors of the epidemic, the data need not be mentioned.

China is also experiencing a similar trend. Fast fashion will encounter obstacles in 2019, and many brands will either close a large number of stores or lose out in China. At the same time, domestic sports brands such as Li Ning and Anta are gradually closing dealer stores and accelerating store transformation.

It may not be surprising to see the first Los Angeles store of Nike live. In short, local Nike + members can experience seamless connection and real-time interaction between mobile app and reality after they arrive in the store. The display and promotion of stores' goods all rely on data analysis to cater to the preferences of local members. Store clerks also pay more attention to contact and interaction with consumers than ever before.

Obviously, the trial in Los Angeles was successful, and Nike opened two stores in California and Tokyo in 2019. More importantly, some of the online and offline service methods of Nike live have been gradually popularized to Nike Direct stores, and even adopted by dealers' stores. They have jumped out of the category of concept stores and become the service model of Nike stores.

The second generation of Nike house of innovation and the first generation stores were born almost at the same time. Compared with "stores", this second generation product is more like a place where fans admire "pilgrimage". In two months, the two second-generation stores opened in Shanghai and New York, the two "super city" hot business districts, with a total area of 3823 square meters in Shanghai, with a total of 4 floors, and the New York store of 6317 square meters, with a total of 6 floors. "You can imagine it's Nike live, but it's bigger." This is what the official introduction to the Nike house of innovation says.

The second generation shop aims at international super first tier mega cities, where fashion and art coexist. For the positioning of "home of innovation", stores are more functional than services. Here, we can see both the past and the future of the brand.

Both the third generation store Nike rise and the fourth generation store Nike unite opened in the second half of this year. The service is no longer the main gimmick, and the theme has been focused on the cultural and spiritual level.

The first store of Nike rise opened in Guangzhou. According to the official introduction, this generation of stores are interested in the urban sports atmosphere in which the citizens' enthusiasm for football, basketball, running and other sports is extremely high. As the store is not far away from Tianhe stadium, relevant activities will be held according to the event. Nike will store as a "stronghold" to spread the experience throughout the city. In short, three generations of stores are working hard on urban culture.

In recent years, the improvement of cultural self-confidence of Chinese people, to a large extent, is the continuous strengthening of cultural identity of the city and hometown, and accelerating the externalization of "online Red cities". In many phenomenal variety shows that influence generation Z, urban culture is one of the selling points. For example, the dialect band in the band's summer, and the brands in China's new rap This phenomenon also affects the trend of "national tide". While the trend products seek inspiration from the ancient cultural symbols, the market atmosphere of modern society also provides the source of creation. For example, Li Ning's trend series "anti army badlive" launched a series integrating urban culture and characteristics, such as "few do not enter Sichuan", "enough to go out of Shanghai", "only Chu talents", "Chang'an youth" A wave of topics and trends.

Perhaps Nike also regards urban culture as a trend, starting from the conjunction point of urban culture and Nike brand culture, so as to better enter the minds of local consumers. At present, there is only one Nike rise store in Guangzhou. As a test shop of urban culture, Nike rise will be deployed in other cities and countries in the future.

Finally, it's Nike unite. The fourth generation stores opened five stores in November this year, and four of them have entered the preparatory stage. This is unprecedented. It is more like a "specific product" under this special environment this year. Its stores are small in size and focus on the community. The materials used in the stores are environmentally friendly and sustainable materials. The interior decoration design reflects the regional characteristics of the local community. At the same time, Nike promises to employ community residents as employees, support schools and non-profit organizations in the community, so as to make the relationship between stores and residents closer.

In fact, the fourth generation stores integrate the theme of corporate social responsibility (CSR), and Nike is also a rare international sports brand that puts CSR in the form of a physical concept store.

This can be understood from the naming of this generation of stores. In the face of the huge division in the fields of politics, economy, culture and race, Nike is actually using an entity space to express the social topic of "unity".

Bain & company, an American management consulting firm, once published a consumer observation on generation Z in the United States, concluding that generation Z is more pragmatic and prefers brands with strong sense of social responsibility. In the past two years, Nike has been emphasizing the social responsibility of enterprises, whether it is to express a position on racial issues or to actively respond to the global epidemic. From carbon emissions to sustainable development, to the participation of teenagers and women in sports, Nike has never spared no effort to speak up. Fourth generation stores are already part of CSR and can help Nike expand into new areas.

To sum up, when Nike live came out in 2018, Nike mainly focused on the online and offline consumption experience, laid the foundation for store services, and created a "lifestyle"; house of innovation is a display of fists and strength, and a two-way output of brand culture and technology. In 2020, with the name of concept store becoming more abstract, Nike also began to pursue a kind of cultural and spiritual resonance. Nike rise calls for integrating Nike's positive brand culture into local urban culture, and calls on consumers to "move up", constantly climb and pursue a healthy lifestyle; Nike unite is the materialization of CSR, emphasizing social responsibility and promoting regional development.

What trend will Nike follow and what theme will Nike follow in the fifth generation concept store?