100% VIRTUAL APPROACH

Virtual Things Unlock Real Experiences

A more recent acquisition was RTFKT (pronounced ‘artifact’). This digital studio leverages technologies like gaming engines, blockchain, augmented reality and next generation NFT collectibles (nonfungible tokens

In a first experiment, they managed to sell 600 pairs of Nike Air Force One NFTs in just seven minutes for a total of $3.1 million. A more-recent initiative is the CryptoKicks Dunk Genesis: after users get a pair, they can customise their sneakers using 'skin vials'. This allows you to collect, evolve and breed sneaker skins. The average price for some of these rare sneakers is around $7,500, but some sell for well over 100k.

You can't wear these sneakers in real life or show them off in games like Fortnite. You can use a SnapchatAR filter to see what they would look like on your feet. The popularity reached the boundaries of the virtual as the blockchain seemed not fast enough to process all changes at the moment of buying.

A DIGITAL SHOE IS NOT A SHOE?!

Ownership of a virtual sneaker is not the same as owning a physical shoe or vital product. It's more like a service, or a set of corresponding unique utilities. Something that leads you to a special access, a pre-order of a physical shoe, or maybe even to a special event in a token-gated community or the voting power on certain designs for physical shoes.

CONNECTING REAL, DIGITAL AND VIRTUAL

Nike does not look at digital as just channel-by-channel (omnichannel). Instead, it architects specific power moments in the customer journey. Of course the Nike app unlocks special services in its flagship stores for members. But why would someone with a phone walk into a store?

Nike aims to provide the best experience where the most connected customers are. If people are shopping in the app, they don't need a store there. Or when seeing an ad on TV, or on the road, or while visiting an augmented-reality experience – but a custom store can pop-up anytime, anywhere.

METAVERSE: SPORTS MEETS GAMING

Nike is experimenting with extending its reach into a metaverse called Roblox, a global online (gaming) platform that reaches nearly 50 million daily active users. Nikeland is free to access, stocked with minigames (some of which make use of your smartphone's accelerometer), and offers opportunities to win even more products and rewards.

DREAM IT. BUILD IT, PLAY IT.

Nikeland allows fans to play, meet, socialise, take part in promotions, and engage with a whole range of brand experiences. Users can buy exclusive digital products to decorate their avatars, or visit digital events with real celebrities such as LeBron James. Each visitor to Nikeland also becomes a steward of their own 'yard' (called 'My Playground'), a personal space within Nikeland that can be used as a 'home' to show collectibles and digital personality, and invite others.

SWOOSH: SERVICING PLAYERS & CREATORS

Nike's most recent metaverse venture is DotSwoosh, a Web3-based platform (using a Polygon chain) where people can buy and trade virtual footwear, fashion apparel and accessories. By launching Swoosh, Nike has created its own virtual world (metaverse) that doesn't need to rely on other platforms. The initial focus of the platform is on community building and presenting members with 'challenges' so as to learn of what people want and expect. Without doubt, Nike is experimenting its way into finding contemporary revue streams. For example, Nike plans to tap into the rising creator-economy and let people design and sell sneakers for the metaverse.