Nike has taken the lead in e-commerce by being the first to market with its e-commerce web-site. Nike launched its e-commerce site in April 1999 by offering 65 styles of shoes to the U.S. market for purchase. Nike increased its e-commerce presence by launching NIKEiD in November 1999. NIKEiD enables online consumers to design key elements of the shoes they purchase. The program represents the first time a company has offered mass customization of footwear. Nike’s future plans include opening an online shop for the Japanese market next year followed by global rollout. By being the first to market, Nike enables itself to become established while competitors rush to join them.HISTORY
Nike, is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered in the Portland metropolitan area of Oregon, near Beaverton. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $16 billion USD in 2007. The company was founded in 1962 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978. The company takes its name from Nike ,the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.
Today,they operate in more than 160 countries around the globe. Through their suppliers, shippers, retailers and other service providers, they directly or indirectly employ nearly one million people. That includes more than 30,000 Nike employees across six continents, each of whom make their own contribution to fulfill the mission statement.PURPOSE: to bring inspiration and innovation to every athlete in the world.
Nike set up the ‘Nike’s official online store’ is to provide its customers another ways of shopping. Furthermore, Nike may promote its new products through the internet to the whole world at the same time, this is a new and good market strategic, it saves cost i.e. advertisement, and time for both business and consumers.
FEATURES
Business model:
It is apparent that Nike’s official online store is a Business to Consumer model (B2C). Business-to-consumer describes activities of businesses serving end consumers with products and/or services.This involves money transactions over the Internet or through banks.
Besides, Nike recently teamed up with Apple Inc. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. The iPod Nano is a portable media player designed and marketed by Apple Inc .Basically it is a Business-to-business (B2B) strategy, which is a term commonly used to describe commerce transactions between businesses.
Curious about it?
Kindly click the following video which shows the advertisement of Nike + product.
CHARACTERISTICS
Nike is very caring that it sets up quite a number of different languages for different users. This helps the users to know the products better with their language.
Furthermore, Nike categorizes its products into few sections, which are women, men, kids and sport. This is very convenient to the customers as they can straight to the way to get their staffs.The way that Nike displays the products is quite special as they provide 3-D animated graphic of the product. Consumers can view the product not only front side but other degrees, too. If there are other colours of the products, consumer can change the display product picture into which the colour they prefer to.
Except those mentioned categories, there is some sub-categories such as colors, prices, sportswear, accessories, etc. Therefore, consumers can immediately get those classified products that they prefer to.
The most important thing is , Nike makes its web very attractive to the customers, so that, it will stimulate the purchase will of the consumer.
Moreover, there is a rating system for consumer to rate the product with their own opinions. For a better service, Nike designers would like to know how their designs contribute to the consumer. That’s why they spend more time on continuing to support and develop programs to gain a better understanding what their customers would like to see in the market.
For every product, there is an overview for it. There are a lot of photos provided by Nike. They are interesting and colorful. You also can customize your gear ,apparel and equipment to match your own style, pick the color ,select material and your personal motto and make it your own.
PAYMENT MODE Payment can be made by Visa, Master card, Discover and American Express. Furthermore, payment can be made by ‘Gift card’, which is provided by Nike itself and it is a kind of stored value card. Gift cards can be purchased at Nike.com or at Nike Retail stores. Due to the change of exchange rate, consumers can either incur losses or gain benefit depending on the situation.
STRENGTHS
No geographical and time constraints.
The web welcomes people from all around the world,. People can order goods anytime and anywhere and they can purchase the products without stepping in the shops.
It saves time and cost.
People can purchase products that not available in their country but in others. People can just sit in front of the computer and select those staff that they are interested to, shopping without any sales promoter, looking for what you like. Once people have picked up what their staff, they can make the payment via credit card or master card.
Good in categorizing their products.
Good classification is strength of Nike. They have definitely proven that they have the capability to treat customers as individuals and really understand the need of the customer.
Responsiveness in product delivery
They provided the promotion for free shipping. Customer may place more order for fulfilling the requirement of free shipping. ( eg make order above $100 before 20 Otc)
Provide needed information
The Nike web not only provides the service of online shopping, but also other information. If you request a catalog (an organized, detailed, descriptive list of items arranged systematically), will be sent to you within 7 to 10 days. The location of the nearest shop within your place is stated in the official web too.
WEAKNESSES
Fraud and security concerns
Given the good reputation of NIKE, consumers may not so worry about the risk of fraud on the part of the shipping service. However,Nike has no choice but have to risk the fraudulent purchases using stolen credit cards or fraudulent repudiation of the online purchase.
It is hard for customer to verity the products’s quality.
One of the common weaknesses of internet shopping is the consumer cannot thorouthly trust the source of information given by supplier to verify the products’ quality. Although goods can return to the shop, the process of doing so is still very troublesome. Some consumer even give up their right to do so.
The products is may not suitable for everyonehe .
There is no denying that conventional retail shopping make us easier in making a better decision on choosing product instead of online shopping. The fit size is not so reliable. Clothes suit for western people may not really suit for eastern people.
Due to the exchange rate, consumer may incur losses in the trade.
OTHER COMPETITORS:http://www.addidas.com/
http://www.puma.com/
http://www.mizuno.com/
Since we know that Nike is the first to the market with its e-commerce website, therefore, its competitors must after it. Nike is sportswear and equipment supplier, therefore, its main competitors are in this industry. They are Puma, Adidas, Mizuno, etc. These competitors have their own e-commerce website.
CONCLUSION
Nowadays, the trend of shopping is changing from conventional retail shopping to online shopping. So, e-business is getting important.
Comparing with other e-commerce websites in the same industry, Nike provides a very good e-commerce website; it is interesting, attractive and well organized. It provides clear information, colourful display pictures, ease of use. Nike cares about what does consumer need.
Through the e-commerce, Nike has found a new way to expand its business as internet has become a part of our live. There is no more geographical and time constraints, and save the transaction cost and time. This will also benefit consumer. Therefore, they can make any transaction everywhere at anytime.
OTHERS: the best tv advertisement of Nike
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