Reporter Wang Qiwen
June 8, Nike The Nike Running Club (“NRC App”), its running app, issued a notice to users about the suspension of service, stating that due to business adjustments, the NRC APP will stop serving in mainland China from July 8, 2022. NRC App said that it will provide data export services for runners in need from now on. At the same time, Garmin’s sports equipment will stop data synchronization with NRC APP from now on.
Nike responded to the surging news that Nike announced on June 7 that it would start the transformation of its own digital platform in July. This transformation is aimed at the overall digital ecological transformation of the Chinese market, and various platforms have been adjusted, not only the NRC App.
A Nike official also revealed to The Paper that, simply put, the NRC App is temporarily offline, transferring data and technology development from the US server to the Nike department in Shenzhen, China.
In November 2021, Nike Digital Technology (Shenzhen) Co., Ltd. (now renamed Nike China Technology Center) in Shenzhen was completed. It is reported that the total investment of Nike China Technology Center is 1.3 billion yuan. At present, the R&D center has completed the first phase of deployment of human, hardware, software and technical resources.
According to reports, the center plans to complete the deployment in the next three years, and recruit hundreds of technical talents and engineers locally to provide personalized services to local consumers.
The transformation of Nike’s digital platform to be carried out in July mainly includes the upgrade of Nike App application software and membership services, the Chinese version of the limited sneaker purchase platform SNKRS App and Nike.com will also be upgraded at the same time, and the investment and creation of WeChat ecology will be increased. It is reported that Nike has Nike WeChat applet, course training Nike Training Club (NTC) WeChat applet, etc. on the WeChat platform.
According to Nike, these digital platforms will also seamlessly connect membership services and experiences in all offline stores, including Nike’s direct stores and partner stores.
Nike’s third quarter results for fiscal 2022 disclosed on March 21 this year showed that during the reporting period, the company’s revenue was $10.9 billion, an increase of 5% over the same period last year. Among them, sales of Nike brand digital business increased by 19%, driven by double-digit growth in Asia Pacific, Latin America and EMEA. In addition, during the reporting period, unaudited revenue in Greater China was US$2.16 billion, down 5% from the same period last year.
As of June 8, Nike (NIKE) closed up 1.20% at $121.67, with a total market value of $191.5 billion.
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