Nike’s acquisition of Celect is the latest sign that the sports apparel giant seeks to boost DTC sales among a variety of distribution channels, including its mobile app and website. The tech-driven drop strategy of selling exclusive, limited-edition items has become more popular among apparel makers to generate excitement and demand. In footwear, the strategy targets loyal customers such as “sneakerheads” who like novelty items.
DTC sales also give Nike quicker insights on consumer demand than orders from retail chains like Foot Locker. Celect’s tech may help Nike boost this strategy by optimizing its inventory across channels with hyper-localized demand predictions to ensure customers can find and purchase what they’re most interested in.