Blockchain patents and e-commerce effort promise an exciting 2020 for Nike

2020 will be an exciting year for Nike, its fans and customers. 

How so?
 

Nike has been known for innovation for years, but its efforts in the last few years have put it in a position to really delight customers. It engages with customers in a meaningful way by creating a sense of excitement with new energy.

 

According to a patent dated December 10th, 2019, Nike is tokenizing the ownership of exclusive shoes. This provides Nike the system and method for providing cryptographically secured digital assets. 

 

The patent allows Nike to launch crypto-backed (authenticity guaranteed by blockchain) sports shoes in the future. When purchased, shoes will become linked to a unique owner, all recorded via blockchain technology. The patent says owners will also be provided with the added control of their footwear, with the capability to ‘breed’ custom shoes which can be manufactured to produce a tangible product.

The complexities that high-quality footwear brands face in markets flooded by imitation goods, especially in Asia, have inspired this innovation. 

 

Nike’s visualization of the innovation indicates that the digital representation may include a computer-generated avatar of the shoe or a limited-edition artist rendition of the shoe. Using the digital asset, the buyer can securely trade or sell the tangible pair of shoes, trade or sell the digital shoe, store the digital shoe in a cryptocurrency wallet or other digital blockchain lockers.

 

Consumers’ demand for gaining access to authentic sneakers is being heard and responded. Therefore, the company’s heavy focus on e-commerce is expected to play a big role in its success in 2020.

 

In China, for example, Nike has partnered with Alibaba-owned e-commerce platform - Tmall,  to drive business in the country and delight users who frequent the platform.

Nike also has a partnership with Tencent’s WeChat, the most popular messaging and everyday consumer platform in China.

 

“Nike’s momentum across geographies, categories, and channels is strong. Digital prowess, increasing speed-to-market capabilities, a robust product pipeline, and improved offerings in the moderate and better channels are driving top-line growth and margin expansion,” said Susquehanna Financial Group Analyst Sam Poser about Nike recently.

 

Source: TechwireAsia