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Nike lays out new growth targets

RBR Staff Writer Published 27 October 2017

Sporting-goods retailer Nike is accelerating a consumer-led transformation to ignite its next phase of long-term growth.

The company expects to see high single digit revenue growth, expanding margins and more mid-teen earnings per share in the next five years.

Nike has come with the strategy to sell It is planning to sell directly and personally to its customers, digitally.

The company plans to double its innovation capabilities with distinct platforms and to scale innovation faster. It says that its new edit-to-amplify can give its customers better choices and create new aesthetics.

Nike chairman, president and CEO Mark Parker said: “The consumer today expects a premium experience, with innovative product and services delivered faster and more personally.

“Fueled by a transformation of our business, we are attacking growth opportunities through innovation, speed and digital to accelerate long-term, sustainable and profitable growth.”

The company aims to double the speed at which it can reach market by reducing the average reaching time of the product up to 50%. At the same, it also plans to double its direct connections with customers and to sell directly through its online platform, besides selling at stores.

Nike claims that its new innovation platforms could drive up to 50% growth in revenue. The revenue from these digital platforms is expected to increase at 15 in 2018 to more than 30%. Speed-to-market could double as the company is trying to reduce its overall product creation time by 50%.

As part of its new strategy the company has come up with new NikePlus membership program which gives member-only to the products that members love, matched to their personal preferences and buying patterns.

This membership, as per the company is about three key services that serve consumers on their terms by giving them access to its latest products, exclusive access to personalised services and experiences and reserved products for its members.

Image: Mark Parker sharing Nike’s new strategy for growth over the next five years. Photo: Courtesy of Nike, Inc.