Nike is Grooming a New Generation of Sneaker Loyalists With Kid Subscription Box - Black Enterprise
Black Enterprise Magazine Summer 2019 Issue

The retail industry is changing fast. Malls are shutting down across the country and brick-and-mortars are continuously closing up shop. At this point, companies can either get mad and blame Amazon or employ new strategies to target a younger demographic of digitally-native consumers and online shoppers. That’s what Nike is doing, and it’s brilliant. Through its new sneaker subscription for kids, the footwear giant is building a direct-to-consumer connection with a new generation of customers, some of whom are not even old enough to tire their own shoes.

On Monday, Nike unveiled the Nike Adventure Club subscription plan, which is aimed at children from two to 10 years old, reports CNN. The plan gives parents three different tier options for their kids. They can sign up for four pairs of sneakers a year for $20 a month, six pairs for $30 a month, or 12 pairs for $50 a month. They will also have the option to choose from a selection of about 100 sneakers.

In addition to saving parents time and dreaded trips to the shoe store, children will get a kick out of the fun, kid-friendly boxes, which are decorated with animation that can be colored-in and filled with games and activities. Nike’s subscription box will also include a sizing chart to help parents measure their children’s feet.

On top of being a convenient and consistent revenue generator, the subscription service gives Nike the opportunity to establish brand loyalty with a (very) young market. According to Forbes, subscription services have grown by more than 100% each year from 2013 to 2018, ballooning into a billion-dollar business and one of the fastest-growing consumer trends. Subscriptions have also changed the way people shop for everything from clothing to meals to razors. But, for Generation Z, who grew up with on-demand TV and next-day delivery, subscription services are the norm. So it makes sense for Nike to target this base by tapping into the subscription market.

“Solving the need for parents with kids aged 2-10 years means that we are going to start building relationships through kids,” the scheme’s manager for Nike, Dave Cobban, said, reports Reuters.

Lastly, the Nike Adventure Club gives the sneaker company the ability to capitalize on the U.S. kids’ $10 billion shoe market. “In providing footwear, we’re always trying to answer, ‘What do kids want?’” Nike Adventure Club’s director of product experience and retention, Dominique Shortell, said in a press release. “But an equally important question is, ‘What kind of experience are we providing for their parents?’ We want to make shopping for footwear as convenient as possible for them.”

If all goes well, don’t be surprised if Nike rolls out a sneaker club for adults.