Nike: House Of Innovation

Nike now makes $12.4 billion (36% of revenue) from Direct to Consumer sales

The Challenge

In 2015, Nike CEO and President Mark Parker set an ambitious revenue goal of $50 billion by 2020. The most innovative company in the world recognized that achieving this milestone required pushing the boundaries even further. A me-too strategy would not suffice. Nike needed to create the most innovative direct-to-consumer experience in the world to propel its growth.

Our Approach

To accomplish this audacious goal, Sense Worldwide collaborated with the Nike Retail Innovation Experience Team to develop a robust Direct-to-Consumer (DTC) strategy. This involved capturing more revenue with higher margins by delivering exceptional customer experiences. To ensure their innovation plans were future-proof, Nike sought the expertise of The Sense Network, their trusted partner for understanding the need of their future consumers.

By tapping into The Sense Network, Nike was able to engage with radical thinkers and extreme users, including a museum director, a restaurateur, and a storyteller. This diverse group provided invaluable insights into the cutting-edge trends and experiences shaping the global retail landscape. Armed with these perspectives, Nike embarked on designing a retail experience that would surpass industry benchmarks and redefine what it means to engage with the brand directly.

The Result

In November 2018, Nike unveiled “The House of Innovation” on the corner of Fifth Avenue and 52nd Street in New York, signaling a new era of immersive retail. Subsequent locations followed this flagship store in Shanghai and Paris. The House of Innovation became instrumental in driving revenue growth, with 36% ($12.4 billion) of Nike’s total revenue in 2020 coming from DTC channels.

Nike’s strategic investment in DTC channels demonstrated its unwavering commitment to innovation and delivering unparalleled experiences to its customers. By embracing a customer-centric approach and leveraging insights from The Sense Network, Nike successfully transformed the retail landscape, cementing its position as a global leader in innovation.