Nike Moves to Make the Nike Training Club App Free Permanently
While store closures around COVID-19 created a void for Nike (NYSE: NKE) last quarter, the future is in the digital sales channel. At the heart of Nike's digital marketplace is membership, which is revolving around an ecosystem of experiences including commerce apps like the Nike app and SNKRS, and activity apps such as Nike Running Club and Nike Training Club.
Nike previously required a subscription for premium workouts through Nike Training Club, but in March, it offered this content at no charge for 90 days to assist those staying at home during COVID-19. Now, Nike is making the premium content permanently free.
These activity apps are a crucial piece of the puzzle to Nike's growth strategy. In the fiscal fourth quarter that ended in May, digital revenue soared 79% on a constant-currency basis. Management is seeing the engagement in these apps translate to demand for sportswear. At the heart of this is a deepening relationship between the brand and the customer, which is a good sign for Nike's long-term growth prospects.
Source Fool.com
