Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down Nike’s (NKE - Free Report) new self-lacing, Bluetooth-connected Adapt BB shoes. The episode then dives into how the Adapt BB smart sneakers work into Nike’s larger digital future as the sportswear giant races to expand its e-commerce sales.
Nike officially introduced its new Adapt BB shoes last week after teasing them over the last month. The firm debuted the new self-lacing futuristic shoes on the heels of CES where the likes of Google (GOOGL - Free Report) and other tech giants introduce their latest offerings and tease the technology they have coming down the pipeline. The Adapt BB basketball sneakers look pretty normal, but they are set to retail for $350 and offer a glimpse into the future of our increasingly connected lives.
Nike’s Adapt BB shoes connect to an app and must be charged. Therefore, they might not be the most practical offering for the everyday consumer right now. But the shoes have already been worn in real NBA games and seem to offer legitimate health benefits. Nike plans to roll out its FitAdapt technology beyond basketball for years to come. And for those who think this is a little bit of a gimmick, remember that Apple (AAPL - Free Report) CEO Tim Cook recently said that he thinks his company’s most significant contribution to the world will likely be on the health front.
With that said, Nike’s new Adapt BB smart shoes are also part of the company’s larger digital push. Nike has rolled out numerous apps and it crushes its peers like Adidas ADDYY and Under Armour UAA in terms of reach across social media from Instagram (FB - Free Report) to Twitter (TWTR - Free Report) , in an age where users shop more and more from their phones. In fact, Nike CFO Andy Campion said recently that Nike expects its digital division will comprise 30% of the firm’s total business by 2023, compared to roughly 15% at the moment.
Despite Nike’s e-commerce expansion and partnerships with companies like Alibaba (BABA - Free Report) and increased presence on Amazon (AMZN - Free Report) , CEO Mark Parker is committed to continuing its strategic partnerships with Foot Locker (FL - Free Report) , Nordstrom (JWN - Free Report) , and Dick’s Sporting Goods (DKS - Free Report) . Overall, Nike is ready to remain the biggest sportswear company in world by constantly evolving and innovating as it faces more competition from the likes of Lululemon (LULU - Free Report) , Gap (GPS - Free Report) , and other non-traditional sportswear brands.
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