With a New Leadership Structure, Nike Drives
Growth Through Key Cities by Doubling Innovation, Speed and Direct
Connection to Consumers
NIKE, Inc. (NYSE: NKE) today introduced the Consumer Direct
Offense, a new company alignment that allows Nike to better serve
the consumer personally, at scale. Leveraging the power of digital,
Nike will drive growth—by accelerating innovation and product
creation, moving even closer to the consumer through Key Cities,
and deepening one-to-one connections.
“The future of sport will be decided by the company that
obsesses the needs of the evolving consumer,” said Mark Parker,
NIKE, Inc. Chairman, President, and CEO. “Through the Consumer
Direct Offense, we’re getting even more aggressive in the digital
marketplace, targeting key markets and delivering product faster
than ever.”
Consumer-focused Growth
Trevor Edwards, President of the NIKE Brand, will drive the
Consumer Direct Offense through integrated category, geography,
marketplace, product, merchandising, digital, and
direct-to-consumer teams.
In the new alignment, the company will drive growth by deeply
serving consumers in 12 key cities, across 10 key countries: New
York, London, Shanghai, Beijing, Los Angeles, Tokyo, Paris, Berlin,
Mexico City, Barcelona, Seoul, and Milan. These key cities and
countries are expected to represent over 80 percent of Nike’s
projected growth through 2020.
Nike is moving closer to the consumer—creating a local business,
on a global scale. To improve efficiency, all key cities and
countries are supported by a simplified geography structure,
changing from six to four—comprised of North America; Europe,
Middle East and Africa (EMEA); Greater China; and Asia Pacific and
Latin America (APLA). The leaders of the newly-formed geographies
are: Tom Peddie VP/GM of North America, Bert Hoyt VP/GM of EMEA,
Angela Dong VP/GM of Greater China, and Ann Hebert VP/GM of
APLA.
As such, financial results for the NIKE Brand will be reported
based on these four operating segments beginning in fiscal
2018.
The geography leaders will report to Elliott Hill, President of
Geographies and Integrated Marketplace.
Nike’s Triple Double
The Consumer Direct Offense is fueled by Nike’s Triple Double
strategy: 2X Innovation, 2X Speed and 2X Direct connections with
consumers.
To double innovation, Nike will accelerate the impact and
cadence of new innovation platforms. As an example, over the past
few months, Nike launched a cushioning revolution, featuring three
new groundbreaking platforms: ZoomX, Air VaporMax and Nike React.
And, to give consumers more choices of the products they love, Nike
is editing to amplify—reducing its styles by 25 percent, and
offering a deeper selection of key franchises.
To double speed, Nike is on a path to cut product creation cycle
times in half. That starts with the Express Lane, which
quickly creates, updates and fulfills products in response to
consumer demand. Already operating in North America and Western
Europe, a new Express Lane will be activated this summer in China,
serving Shanghai, Seoul and Tokyo—some of the world’s most
promising markets for sport.
To supercharge this faster pipeline, Michael Spillane is
assuming the new role of President of Categories and
Product—leading an end-to-end design-to-delivery organization,
including Categories, Design, Product and Merchandising. This new
integrated organization will place greater resources in the
categories with the highest potential to fuel growth: Running,
Basketball, Nike Sportswear, Men’s and Women’s
Training, Global Football and Young Athletes. To build on the
growth of the Nike Women’s business, a new dedicated Women’s team
will complement each top-tier category.
To double direct connections with consumers and shape the future
of retail, Nike is creating the new Nike Direct organization, led
by Heidi O’Neill, President of Nike Direct, and Adam Sussman, Chief
Digital Officer. This organization will unite Nike.com,
Direct-to-Consumer retail, and Nike+ digital products to
enhance and expand Nike’s membership experience on an increasingly
global scale. Nike will also extend innovations to its strategic
wholesale partners.
Leading with mobile, this team will unite physical and digital
retail to serve consumers with the best of Nike. Two recent
examples of innovative consumer connections are SNKR Stash, which
unlocks access to exclusive Nike and Jordan product using mobile
geo-locations; and Shock Drop, surprise alerts for coveted sneakers
that allow consumers to buy instantly through the app or at their
nearest Nike or wholesale store. Over the next several months, Nike
is also launching its Nike+ and SNKRS apps globally to energize the
sneaker experience in new markets.
Spillane, Hill, O’Neill and Sussman will all report to
Edwards.
Nike’s leadership and organizational changes will streamline and
speed up strategic execution. The changes are also expected to
result in an overall reduction of approximately 2 percent of the
company’s global workforce.
“Today we serve our athletes in a changing world: one that’s
faster and more personal,” said Edwards. “This new structure aligns
all of our teams toward our ultimate goal—to deliver innovation, at
speed, through more direct connections.”
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands
include Converse, which designs, markets and distributes athletic
lifestyle footwear, apparel and accessories; and Hurley, which
designs, markets and distributes surf and youth lifestyle footwear,
apparel and accessories. For more information, NIKE, Inc.’s
earnings releases and other financial information are available at
http://investors.nike.com. Individuals can also visit
http://news.nike.com/ and follow @Nike.
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NIKE, Inc.Media ContactKellie
Leonard, (503) 671-6171orInvestor
ContactNitesh Sharan, (503) 532-2828
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