Embracing the New Era: The 2000s
Looking back at the entire 1990s, Nike's rapid development had two main directions:
- Expanding global sales and achieving significant growth.
- Developing non-shoe sports products such as athletic wear and sporting goods.
In 1996, Nike's total global sales reached $9 billion, making it the world's largest manufacturer of sports products. By the late 1990s, Nike faced a temporary setback as teenagers began to view sneakers more as fashionable casual shoes. Additionally, Asia fell into an economic recession, which was a severe blow to Nike, resulting in excess inventory, reduced profits, and the need for workforce reduction measures. However, Nike remained optimistic about its future development. Phil Knight stepped back to serve as President of the Nike Group, while the CEO position was handed over to Tom Clarke. The new CEO provided an inspiring vision for the company's future:
"Nike has grown rapidly, but when we hit an economic downturn, we need some time to adjust. Please don't forget, we are a group of highly self-demanding Nike people. Our business is focused on long-term sustainability, not just to make everyone happy for the next few years."
Indeed, whether it be in terms of product research and development or brand marketing, Nike's sports products and apparel have the potential to spark another wave of excitement in the global market and continue to maintain their position as the world's number one.
Analyzing the Key Points of Developing New Product Strategies - Leading Consumers
The success of Nike’s new product strategies cannot be separated from the basic principles of marketing – understanding market trends, knowing customer needs, and creating new products that meet and satisfy those needs. However, one important point must be understood: the biggest challenge in developing innovative new products is that consumers do not proactively request them beforehand. In other words, you must lead the consumer; don’t let the consumer lead you by the nose.
Think back to the early 1970s. Before conducting research on new customer needs, how many consumers would have actively requested products like VCRs, fax machines, or microwaves?
Creative companies often use their rich imaginations to uncover implicit consumer needs, staying ahead of consumption trends rather than being mere followers. To discover market opportunities, one must deeply understand consumer demands, lifestyles, and desires, along with possessing some creativity to achieve natural success. For example, who would think that there is no market for pocket-sized translation devices designed to address language barriers for tourists? How do companies obtain the initial creative ideas for such needs? The answer lies in finding ways to approach and observe the customers with the most pressing needs, and engaging further with them. For instance, Japan's Trio showcased their music equipment in London, allowing top European musicians to experience the latest in music hardware. The purpose was not only to better understand their customers but also to demonstrate advanced product technology.
Nike has been able to fully grasp the demand for sporty casual shoes among young people, understand their lifestyle and psychological desires, and develop highly creative new products, communication appeals, and promotional activities. From start to finish, Nike has stood at the forefront of creating consumption trends, and its status as the world's number one is well-deserved.