Guggenheim analyst Robert Drbul notified the clients that Nike will dominate market share in retail. Nike’s share will continue to grow with new innovations in footwear and apparel in 2022.
Even though Nike had turbulence in the global supply chain. The factory closures during the pandemic slowed down the shipments this year. But the company bounced back quickly to reach the financial target laid out in June 2021.
The brand suffered slow growth in China, becoming a key weakness for the company’s reduced revenue. It happened due to the availability of low inventory in Vietnam. Shipment delays caused by the ongoing COVID lockdown stifle sales growth in countries such as China.
Robert also added that “this presents an opportunity for long-term investors as Nike continues to deliver and innovate products that connect with local consumers by promoting healthy lifestyles and other important societal themes.”
Nike announced that it was incorporating a virtual sneaker company, RTFKT, last year. With the Metaverse engagement, the brand expects to increase its revenue. This will make Nike one of the first footwear brands to enter the shared virtual world. This digital transformation will enhance customer service as it will become more creative and fun.
The brand’s engagement strategies in the metaverse will be a sight to watch as they will continuously evolve. Nike aims to expand its potential into the metaverse via virtual sneakers.
The retailers filed trademark applications related to their vision of selling virtual sneakers and apparel. It partnered with the Roblox video game last year. The engagement between the two was to launch “Nikeland.”
The aim was to create a platform that enables the customer to interact, connect, and dress their avatars with Nike’s digital showroom. The digital showroom featured products like the Air Force 1 and Nike Blazer.
The shares of retail faced a beat of 1 percent in early trading this morning. However, it increased its stock by nearly 18 percent in 2021. Currently, the market value is well over $260 billion.