Abstract:
No one can predict the future, but scenarios can be created to help companies free themselves from business-as-usual mindsets and lower the risks they face when met with uncertainties. The fashion industry, which is the project’s focus, has constantly evolving trends and a dynamic ever-changing landscape, allowing uncertain events to occur and largely impact organizations and consumers. This sector is worth 368 billion US dollars as of 2019 and is one of the largest polluter in the world (Bedford, 2019; UN News, 2019). Considering fashion's impact on the world both economically and environmentally, it is crucial for brands to prepare for the future by critically analyzing future scenarios.
With that being said, we chose to create plausible scenarios and strategies for the company Nike for multiple reasons. Nike is the world's most valuable apparel brand with a projected $50 billion in sales by 2022, according to the Brand Finance Apparel 50 2020 report. Nike prides itself on being more than a lifestyle brand by outperforming its competitors with innovative marketing and a creative business strategy allowing them to have the world's strongest customer loyalty. With this immense influence the brand has over the industry and their customers, it is essential for it to have a strong game plan for the future to continue being the world’s leading sports brand.
Given the rapid pace at which trends, production, and consumer attitudes are changing in the fashion industry, we wanted to pick a horizon year that was relatively close rather than thirty years in the future. That being said, there should also be enough time for Generation Z to be fully integrated in the workforce, so that we can critically analyze the evolution of their consumer needs. Thus we decided to pick year 2035, which is 15 years in the future.
When analyzing the fashion industry and Nike, we formulated our focal issue as:
‘How can Nike stay relevant for the next generation of consumers?’
Generation Z will soon become the most populace generation on earth, comprising one third of the world population (Deloitte, 2019). They are also the most racially and ethnically diverse generation in history (Deloitte, 2019). Generations Z are uniquely different as consumers, as they desire innovation, differentiation, and convenience (Wood, 2013). Along with Generation Alpha (the generation that follows), they will have a monumental impact on Nike due to their new way of consuming.
In this portfolio, we have developed and thoroughly analyzed four future scenarios for Nike to help the brand be better equipped to handle uncertainties in the future. We also created three innovative and applicable strategies that allow Nike to remain the industry leader even through uncertain times. We accompany this with a detailed methodology, detection of early warning signs, and a conclusion.
The Team:
Valerie Eyring, Michael Holzinger, Irene Lee, Nikky Price, Ryan Thorne
