Product digitalization at Nike: The future is now

Abstract

Nike is well known for the digitalization of its commerce processes, including direct-to-consumer mobile and social commerce, as well as for pushing the envelope in terms of using advanced materials in innovative sportswear. However, leveraging digital technologies to augment products had not taken off yet. Since the turn of the millennium, Nike had launched several product digitalization initiatives, such as product customization, activity tracking and using products as a gateway to exclusive content, yet none of these had seen major success. Against this background, this case focuses on the launch of Nike Adapt, a new product line featuring a self-lacing system, a concept that was 30 years in the making. For Nike, this was the beginning of the era of true personalization based on smart products, so the pressure was high to make the right strategic decisions.