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Nike is betting on direct sales: this is how its strategy to win over Generation Z works

Nike, the world's most valuable sports brand, is evolving its business model to get closer than ever to consumers, especially younger ones
Nike sneakers
PHOTO: COURTESY OF NIKE

Nike, the world’s most valuable sports brand, is evolving its business model to get closer than ever to consumers—especially younger ones. Its strategy centers on direct-to-consumer (DTC) sales through various channels.

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Instead of relying solely on distributors, department stores, or marketplaces, Nike is investing in its own channels like physical stores, its website, the Nike App, and SNKRS. This decision is part of a business vision designed to connect more deeply with Gen Z, an audience that demands immediacy, authenticity, and personalized experiences.

In fact, this move aligns with the recent launch of its global campaign “Why Do It?”, an emotional and cultural evolution of the iconic “Just Do It” slogan. The new narrative focuses on individual choice, the value of everyday effort, and the courage to begin—perfectly aligned with the values Gen Z promotes.

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What is NIKE Direct and how does it impact its revenue?

According to the Statista Nike dossier (2025), the NIKE Direct division has become one of the company’s cornerstones. In 2023, it generated $18.705 billion USD, representing approximately 38% of total global sales.

This channel includes:

  • Nike.com and Nike App: ecommerce platforms used for exclusive launches and collecting consumer behavior data.
  • SNKRS App: the go-to app for limited sneaker drops, a cult platform among young streetwear fans.
  • Owned physical stores: over 1,000 locations worldwide where Nike fully controls the shopping experience.

Thanks to these channels, Nike not only sells more but also gets to know its customers better. The data collected allows the company to segment audiences, design personalized campaigns, and improve product launches.

READ ALSO. Nike says goodbye to Just Do It? Why do it?: the evolution of the brand

How does this strategy connect with Generation Z?

Generation Z —young people born between the mid-90s and 2010— represent one of the most demanding and complex audiences for brands. They are digital natives, grew up with social media, and value transparency, diversity, and active participation.

Nike understands this well. That’s why direct selling is not just a financial decision but a cultural strategy: it’s about establishing a direct, two-way, and meaningful relationship with a generation that doesn’t want to be treated as a mass but as individuals with their own voice.

With “Why Do It?”, Nike delivers a message that resonates with this segment: it’s not about winning, it’s about daring to start. A narrative perfectly compatible with the logic of owned platforms, where users can view, comment, buy, share, and engage in real time.

What are the advantages of selling without intermediaries?

By eliminating middlemen like department stores or external distributors, Nike wins on multiple fronts:

  1. Higher profit margins: Selling directly avoids commissions and enables better price control.
  2. Full control of the brand experience: From store decor to app interface, everything follows a coherent aesthetic and narrative.
  3. Real-time data: The company has direct access to information on purchases, interests, and trends.
  4. Customer loyalty: Membership programs like Nike Membership offer rewards, early access, and exclusive experiences.

This model also enables a faster response to market changes, a key advantage in times when sports and streetwear trends change at breakneck speed.

How has Nike’s marketing strategy evolved?

The success of direct sales wouldn’t be possible without Nike’s marketing evolution, which has shifted from large TV campaigns to micro-segmentation on digital platforms.

In 2023, the company invested $4.69 billion USD in advertising and promotion. These investments cover not only global ads but also localized content, influencer collaborations, and message personalization technologies.

Apps like Nike App and SNKRS allow hyper-targeted campaigns, niche product launches, and instant reactions to cultural movements.

What role do physical stores play in this digital strategy?

While the digital environment is key, Nike hasn’t abandoned its physical spaces. On the contrary, it has transformed its owned stores into immersive experience centers, where consumers can try products, access exclusive collections, and attend interactive events.

These stores integrate with digital platforms: you can buy online and pick up in-store, scan QR codes for more info, or customize your sneakers live.

Thus, the physical store becomes a tangible extension of Nike’s digital community. It’s where brand values are brought to life: diversity, inclusion, effort, and belonging.

Updated Nike statistics and data

  • Total global sales (2023): $48.978 billion USD
  • Percentage from athletic footwear: 66%
  • Over 77,000 employees worldwide
  • Brand value in 2024: $33.18 billion USD (global leader)

Additionally, Nike has successfully doubled Adidas’ revenue, its closest competitor, consolidating its position as the dominant player in the global sports industry.

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