The US multinational, which a few days ago sealed an agreement with Amazon, develop a new strategy to reach the consumer directly via social network.
Nike announced that its opportunities to sell products via the Internet will be expanded very soon. The company will start selling via Instagram allowing the user to not leave the social network to purchase products.
As reported by Mashable, other brands have only experimented with shoppable tags since Instagram introduced the e-commerce feature in November. However, Nike will be one of the first major companies to invest its resources in Instagram as a way to sell products directly to consumers.
Nike’s main strategy is to grow to $50 billion in the next three years directly “attacking” the consumer.
Palco23 recently reported Nike CEO Mark Parker’s words and clarifications about this strategy and the recent deal sealed with Amazon.
“Through our direct consumer offensive we are putting more effort into creating opportunities for the next fiscal year in our major cities of the world.”
It remains unclear how Nike will use the app to sell shoes. Usually, brands can tag their photos with links to products that show up the same way a tag of a friend or another Instagram user would.
On the other side, the social platform (Instagram) is working hard to support brands. The main concern of the platform invented by Kevin Systrom and then sold to Facebook for $1 billion in 2012 is how to not turn the app into an e-commerce site.
Palco23 reported that Nike closed its fiscal year, running from June 2016 to May 2017, with revenues of $ 34.450 billion (30.191 billion euros). This is a 6% increase over the previous year. As for net profit, the company founded by Phil Knight earned 4.24 billion dollars (3,715.8 million euros), up 13%.