Tuesday, August 13, 2019

NIKE - SUBSCRIPTION BUSINESS MODEL

#Nike has launched a subscription model for children between the ages of two to 10, where kids can get anywhere between four pairs to 12 pairs of sneakers every year, depending on the subscription model that the parents take.

I think this is a brilliant #marketing strategy and business model because I see the following benefits:

1. Nike makes lives easier for parents as they don't have to go to shop for sneakers regularly for their growing kids. 

2. Once subscribed for a year, kids stay only with Nike, thereby blocking the entry of any other brand in their lives.

3. By giving exposure and experience to kids with Nike at a young age, they are trying to convert them into #brand loyalists at a young age so that even when they grow up, they only think of Nike as their brand of choice.

4. Parents who are not wearing Nike today may convert or shift to Nike when they see their kids comfortable and happy in their sneakers.

5. Once Nike tests and learns from this #business model, it can easily replicate it across other age groups - teenagers, adults and scale it up across geographies. This will open a new business frontier for Nike.

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