Source: instagram.com/nikewomen
Can Nike make Instagram selling work?
Social media hasn’t turned out to be the bastion of sales that brands and tech companies had hoped. But one brand that has made numerous digital moves recently is partnering with Facebook-owned photo sharing app Instagram to see if the platform can work as an official sales channel.
The precise details of the integration between Nike’s brand and Instagram’s interface aren’t available yet, according to a Bloomberg article. But the brand is promising a seamless shopping experience for some of its products through Instagram.
The Instagram deal is only one of the recent developments indicative of the brand’s interest in circumventing traditional shoe shopping channels. Just last month, Nike began a partnership with Amazon to sell directly on the e-tailer’s marketplace. And in 2016, Nike revamped its Nike+ app as a source of targeted shoe-related content which also offers a mobile store to allow customers to purchase direct from the company.
As with its other direct-to-consumer endeavors, Nike’s move to sell through Instagram may be based on the observation that the sneaker scene has a unique social sharing side. Sneakers are both high-ticket and collectible, with “sneakerheads” using numerous platforms to discuss, buy and sell rare shoes. Niche startups have taken note. Last year a 17-year-old entrepreneur launched a social sharing site called Sneakmart specifically geared towards sneaker collectors. Another startup, called StockX, launched a stock market-like trading environment for the sneaker aftermarket (with an eye towards moving into other markets).
While it hasn’t been reported if Nike plans to do so, the idea of offering Instagram-exclusive designs could give both the brand and the social site a boost. Such a move could turn fans that only casually use Instagram, or don’t use it at all, into frequent users.
Nike is certainly aware of the lengths its fans will go for exclusive offers. When the brand launched its experiential brick-and-mortar store in Manhattan’s SoHo neighborhood last year, it released a pair of sneakers available only at that store. The sneakers were created in collaboration with designer John Elliot and basketball player LeBron James.
- Instagram and Nike Reach for Fashion’s Holy Grail – BloombergÂ
- What will a Nike Amazon deal mean for the brand and other retailers? – RetailWire
- Will image shopping jumpstart m-commerce? – RetailWire
- Can a social sneaker sales site stand on its own two feet? – RetailWire
- What if online marketplaces conducted sales like a stock exchange? – RetailWire
- Just Do Digital: Nike’s Fundamental Shift To Direct-To-Consumer – Forbes
Discussion Questions
DISCUSSION QUESTIONS: What factors will determine if Nike is able to find success selling on Instagram? What can others learn from Nike’s moves to alternative selling channels?
Poll
BrainTrust
Lee Kent
Principal, Your Retail Authority, LLC
Dave Bruno
Director, Retail Market Insights, Aptos
Because of Nike’s vibrant aftermarket, it’s imperative to be where the consumer is. The key to their success will be giving the consumer what they want. Exclusive deals, personalized designs and reaching out to their sneakerheads one-on-one. It’s not just about the shoe but also about feeling special that makes this kind of sales work. I’ll certainly be interested to see what they can do.
For my 2 cents.
Instagram is about photographs and images. Nike has done an excellent job of building their brand image and photographs/images sell that image. Instagram can be the virtual showroom for Nike. And it’s not just about a picture of the latest shoe. That’s boring. Instead, an athlete (pro or amateur) in an emotionally appealing photo will resonate with fans/customers of Nike.
The key question is, success at what level? There isn’t evidence that Instagram can be successful for selling other than a very small niche. There also isn’t evidence that Instagram has projection qualities — where small success on Instagram projects spreads out and drives very large impact through their higher-volume channels. What fits is the idea that Nike will seek to build sales here with an enthusiast market — albeit a small one.
My expectation is this is a PR move — and we’ve seen plenty of evidence that these kinds of efforts can be used to get several rounds of good press for a company.
One of the key elements for the success of these cross-channel integrations is the ease of use for the shopper. A picture (photo) has always been worth a thousand words and in our visually guided society this should be very successful. I believe AI will drive this technology to a point where it will become commonplace in digital commerce. Any online photo will allow you to find more information and purchase any of the products seen in the image.
I am not sure that Nike would expect huge sales as a result of this project, but they clearly recognize the need to be where their customers are and Instagram is an obvious fit. Their image-centric brand combined with the already strong social media appeal of their products and the unique aftermarket makes Instagram a viable and valuable marketing investment, whether they ever sell much product through the channel or not.
Nike continues to point the way toward how we should think about integrating digital technologies into retail. The company’s dedication to exploring digital media and tying it back to building brand and moving product is as consistent as it is intriguing. Nike understands that its target customer integrates technology into all facets of his or her life and leverages technology to meet the customer where they live and play. So, respectfully, I think this is the wrong question. It isn’t really about Nike and Instagram, it’s about Nike and technologically-enabled customer interfaces. I’m betting Nike can sell a lot of shoes off Instagram, but that isn’t the point. It may be Instagram today, virtual reality tomorrow and a social media channel yet to be named next week. The important lesson here is that Nike, like Amazon, doesn’t get married to one answer or solution or methodology, but continues to experiment and never, ever, takes its eye off the customer.
Nike knows they must go where their customers go, and Instagram is a great outlet for sneaker aficionados! Assuming Nike takes to heart this approach and creates exclusive offers, products, and experiences via Instagram for their loyal fans, sales should follow. This may be a great math for Instagram and Nike to showcase what is possible from blending channels and leveraging social media.
Nike is on the right track by opening up new sales channel opportunities through Amazon and now potentially Instagram. Although Instagram may not drive sales as efficiently in comparison to other channels, it will create buzz and increase word of mouth. Exclusive sneakers released on Instagram would definitely encourage the first few sales on the platform. Furthermore, by penetrating a social media site where Nike’s consumers live, Nike could take their sales into their own hands to stay a top of mind brand.