Nike offers Zalando and JD Sports customers loyalty perks in exchange for data

To receive the Vogue Business newsletter, sign up here. Nike is seeking to build closer relationships with its global customers by offering its full range of digital services — including exclusive products and access to its loyalty scheme — to those shopping the brand via European retailers Zalando and JD Sports. Nike customers will be able to link their Nike membership to their JD Sports or Zalando accounts and access member-only perks, including advance notice of new product drops, exclusive items and new digital experiences. The integration, which is currently live for JD Sports and coming in October for Zalando, will give Nike a more holistic view of Nike member purchases, while Zalando and JD Sports will be able to offer shoppers a wider range of products and services. Nike tested the model in the US with Dick's Sporting Goods last October, and is now bringing it to Europe. It has proven to be “a more effective way to serve consumers” that builds closer relationships, says Jim Reynolds, Nike’s vice president of marketplace partners, via a call from the sports giant’s global headquarters in Portland. The goal is to let customers view their Nike purchases connected with their account in a more complete way, according to the brand. It will also allow Nike to better understand how joint customers shop with its partners in order to strengthen the consumer experience. “The consumer doesn’t care about distinctions that sometimes we make, and they would like to be served as seamlessly as possible,” says Reynolds. “When they encounter us in a multiplayer environment, they want as consistent an experience as possible. And our partners find that’s also helpful for them. If we both serve consumers better, it's good for both companies.” He says Nike chose Zalando and JD Sports because they are “two of the leading retailers in our industry”. JD has “a very close connection with youth”, particularly those interested in sports, while Zalando spans many different consumer groups, he explains. “In both cases, they were chosen because of their consumer connection [and also] because they have a strong orientation, as we do, to customers’ increasing expectations from retailers, and are serving them.” JD Sports chief executive Régis Schultz says the partnership is “mutually beneficial” and “amplifies the combined strength of [our] brands with our shared consumers, by leaning into their behaviour and journeys and creating new, richer and more engaging experiences”. Consumers who link their JD and Nike member accounts at launch will receive early access to Nike’s Blazer Pro sneaker in the JD app, and be invited to exclusive Nike member experiences and events at JD’s stores. Nike members who link their account to Zalando at launch will gain early access to an exclusive selection of maternity wear from Nike. New exclusive products, offers and experiences will be introduced regularly, according to the brand. Importantly, the integration will allow Nike to gather more data on its shoppers. “One of the beauties of having a connected relationship with consumers and being able to work digitally is that the feedback loops are so much faster and much more rich. We’re learning all the time,” says Reynolds. The new partnerships are a continuation of Nike’s direct-to-consumer strategy. In 2017, Nike announced it planned to increase its distribution through direct channels, and proceeded to sever ties with the large majority of its wholesalers. At the time, Nike’s retail network encompassed 30,000 retailers and 110,000 points of distribution. It now has 40 core retail partners, including Zalando and JD (Nike does not disclose the full roster). Speaking with Vogue Business in May, Nike CEO John Donahoe outlined digital as a main accelerator for growth across all aspects of the business. John Kernan, managing director at financial services firm Cowen & Company, covering retail and consumer brands, predicts that Nike’s digital business could reach $30 billion in sales by 2026, up from $11 billion today. Nike is looking at a breadth of metrics to measure success of the new partnerships with Zalando and JD Sports. “Overall, we’re looking at consumer sentiment and engagement,” says Reynolds. “We jointly look at how we’re serving customers and how they’re responding to the offers we’re making and the kinds of connections being made.” He adds that, collectively, the goal is to “tap more deeply into their affinity for sport and to grow the industry.” More partners will soon be announced. Nike is in conversations with “multiple” other retailers who are among “the best from around the world”, according to Reynolds. “Several of those CEOs are asking when we might be able to activate with them. We’ll continue to do this with a select group as we’re able to really execute it well.” Comments, questions or feedback? Email us at feedback@voguebusiness.com. More from this author: Nike CEO John Donahoe says he’s chasing Generation Alpha Global luxury brands go deeply local. Suburbia isn’t far off Rethinking the store of the future

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