Nike’s online sales have recently peaked, as the company increased the customization options available to customers. The sporting-good giant is allowing customers to pick the colour patterns & the lace colour of their new shoes and it is resulting in a massive boost in sales as customers are given free reign over the colour of their shoes. This strategy from Nike is excellent as allowing more customization really helps improve demand for the companies products. By giving customers what they want specifically, Nike is helping fulfill more of the customers wants and at the same time they can also charge a little higher for the shoes as they are personally made foe each individual. Another big advantage this has is helping reduce Nike’s inventory levels. By making products on demand Nike doesn’t have to predict what customers will be buying and therefore, they are less likely to produce a lot of extra shoes that will go to waste. Nike can also use the customer’s preferences to see trends in shoe colours and sell more of those colours in their stores.
Overall this strategy has several benefits for the customers but more importantly for Nike, as an improved website and better customization makes the firm seem more personal, which is very difficult for a big brand to do. Also it helps improve brand loyalty for Nike as customer’s will be more satisfied by their products.