Wanted to share an initiative Nike are running out of their Portland store. On the second floor is an area with a range of shoes on display and eight computers. The computers are available for visitors to use to create their own designs – making decisions on colours, textures, and the addition of logos and ID marks. Once designed, they can have the shoe produced and delivered within a few months or have a poster or picture produced. Designs are stored on system and can also be altered and/or purchased later online using an ID code.
The apparel market (at both team and consumer level) appears to be an increasing competitive one with new brands like Warrior (UK) and KooGa (Australia) gaining market share from dominant traditional providers (i.e. Nike, Adidas, Puma, Reebok). The fragmentation of brands signing apparel supplier and licensing deals with prominent professional teams is likewise diversifying . Recently, teams are also considering the opportunities of ‘in house’ licensing programs where they would produce and sell self-branded apparel without the use of an official supplier.
Although the concept here is operating at consumer level, this concept provides a considerable point of difference and importantly, Nike can use their substantial distribution and resource base to offer this service, which not all players in this market could. More widely, with Nike’s new NFL agreement, opportunities for consumers to include designs with team trademarks and licensing points also exist.
What Nike has created is a great opportunity to embrace concepts of co-creation and co-production encouraging consumers to interact and be part of the product creation. Looking at the impact on consumer behaviour, customers build a feeling of control, deeper connection and affinity to the brand, and provided aspects of service delivery and product quality are in line with expectations, post consumptions outcomes are also likely to be positive. Based on users in store, its a great engagement point for all ages, (kids in particular appear to love it – including the card they take home with their shoe design on it), the staff love selling it, and the concept is not as expensive as you might expect for consumers .
No international shipping is available yet, but the legal, taxation and logistics are currently under investigation, with planned delivery outside the US a possibility to be operational prior to the Olympics. You can see the NikeID site here.
 Admittedly, some of the emerging brands are co-owned by (or sub brands) of larger apparel companies
 Use of colours and design customisation will be limited here in line with team branding regulations
 As expected, there is an elevated price that includes a charge for customisation of the product, but not incremental pricing per option and overall the level seems realistic