Nike steps up digital transformation with startup purchase

By Kate Birch
In a bid to boost its consumer-led digital transformation and accelerate its successful direct selling strategy, Nike snaps up data platform Datalogue...

Nike Inc. has announced it has snapped up data integration startup platform, Datalogue, an acquisition that accelerates the firm’s strategy towards consumer-led digital transformation. 

This latest move, part of the sportswear giant’s Consumer Direct Acceleration (CDA) strategy to improve connectivity with its customers via a more direct selling route “builds on our digital momentum by enhancing our ability to transform raw data into actionable insights in real-time and across the enterprise”, Nike Inc. CEO,
John Donahoe said in a statement. 

As a cutting-edge and proprietary machine-learning technology that automates preparation and integration, Datalogue will allow Nike to integrate data seamlessly from all sources, including its app ecosystem, supply chain and enterprise data, so the data becomes more easily accessible to the company and is standardised across platforms. 

The acquisition will see the Datalogue team integrated into Nike’s Global Technology organisation. 

What is Nike’s digital innovation strategy?

The acquisition of Datalogue is a continuation of Nike’s strategy to improve connectivity with its customers. 

Back in 2017, Nike unveiled its Consumer Direct Offense, a strategy aimed at ramping up its connectivity to consumers via more direct selling as well as digital innovation. And it’s been working.

In October 2020, during the middle of the pandemic and even while the retail brand had to close more than 900 stores worldwide, Nike’s share price hit an all-time high, a validation of its Consumer Direct Offense strategy. 

In December 2020, the company reported better-than-expected earnings and announced it had logged three consecutive quarters of roughly 80% digital growth. During Q2 2021, its online sales surged 84% with triple-digit growth in North America and double-digit increases in Europe, MENA, Greater China, Latin America and Asia Pacific. 

The next phase for Nike, now a focus for 2021, is its Consumer Direct Acceleration, a business strategy focused on direct, digital sales with plans to increase investments in technology and ecommerce for improved digital innovation on consumer touchpoints.

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