Nike Launches a Sneaker Subscription Service for Kids
Nike is entering the subscription business with a children's sneakers club, CNBC reported. There’s momentum in Nike’s kids business, which has grown revenue 11 percent over the past year. The subscription service is called Nike Adventure Club, and will allow parents to order shoes for their kids on a quarterly, bimonthly or monthly basis, paying monthly fees of $20, $30 or $50, respectively. The launch of the service, which is available for kids ages 2 to 10 and will offer about 100 shoe varieties, comes at a time when other brands like Urban Outfitters and American Eagle are also testing the subscription model. Each box will have the child’s name on the outside and will include an activity guide, stickers and an additional gift. Nike has been testing the subscription platform for the past two years, using Facebook ads to target parents for a business called “Easy Kicks.”
Total Retail's Take: Subscription clubs and services have changed the way people shop, and they're available for everything from meals to makeup, to apparel and footwear. However, a children's subscription service is interesting because, as Nike CFO Andy Campion said in the CNBC article, it allows brands to build relationships with kids from a young age, hopefully evolving into long-term loyalty. Nike is also targeting busy parents who don't have the time to take their growing kids to the store every few months for new shoes. While data shows that we're still unsure if consumers will consistently pay for subscription services, brands continue to experiment with the commerce model. Nike, and its kid's shoe service, is the latest example.