In an "effort to capture the attention -- and dollars -
- of the demographically powerful 'Gen Y' crowd," Nike is
"moving beyond shoes and sportswear and going digital,"
according to Khanh Tran of the WALL STREET JOURNAL. The
company has formed a new division, called "Techlab," to
develop a line of sports-technology products that it plans
to unveil today, which includes a "digital audio player, a
high-tech walkie-talkie, a high-altitude wrist compass and a
portable heart-rate monitor," all featuring the Nike swoosh.
The digital audio player, which will play MP3 files and
Microsoft's Windows Media audio files, will be available in
July at NikeTown, sporting-goods and audio-video stores, as
well as on the company's Web site. The other products will
be available in time for the Holiday season. Nike "also
plans to market" a watch that measures a runner's speed and
distance. Nike "wouldn't provide sales projections" for the
line but says that the products will be marketed "globally."
Tran writes that Nike has "tried before to branch out into
sports equipment, ... but to mixed reviews." It "admits to
making 'some errors,' but hopes to fare better this time
because it has teamed with the leading technology companies"
to develop the products (WALL STREET JOURNAL, 5/10).
FASHION BUGS: BRANDWEEK's Terry Lefton reports that
Nike will "back the launch" of the Air Presto shoe with a
two-month, $15M campaign via Wieden & Kennedy, and in
"decidedly non-Nike style, the marketing push will focus
more on fashion than function." The shoes will be available
in 17 different color "ways" by the end of 2000, and Nike
Dir of U.S. Brand Initiatives Dave Larson said, "There is
some serious technology in these shoes. ... But we're
marketing them almost as a color story" (BRANDWEEK, 5/8).
