Nike Debuts Self-Tying Laces

Nike’s technology investments are being put to the test this week after the release of its new product, the Nike HyperAdapt. It is a $720 pair of shoes — and these particular kicks come with a set of self-tying laces (think Back To The Future: Part II).

The new sneakers are exclusively being sold on the Nike+ mobile app (and at the swanky new 55,000-square-foot SoHo store). The HyperAdapt sneakers come as part of a push by the footwear manufacturing company to shift their business model from wholesaler to eCommerce mogul as retail continues to shift online across sectors. Nike reportedly looks to double its direct sales to consumers to $16 billion by 2020.

The idea behind the release model is to draw customers into buying via its app or visiting Nike stores for limited-edition merchandise releases in the vein of Footlocker. Nike has also reportedly been upgrading its fitness and training apps like Nike+ Run Club and Nike+ Training Club — and let’s not forget the Nike-branded version of the Apple Watch.

In truth, Nike doesn’t want to be outmatched again by its rivals Adidas and Under Armour like during the Rio Olympics.

Normally a boost to Nike’s stock price, the 2016 games in Rio saw a dulled reaction from Nike investors — who bumped the stock price up about 1 percent. By comparison, Adidas saw its stock rise 6 percent, while Under Armour saw an uptick of 3 percent.

Under Armour is especially a threat to Nike’s eCommerce ambitions. Under Armour has been a hit online, seeing a 71.6 percent increase in online sales in 2016, adding up to $377.5 million — up from $220 million in 2013.

While customers may be drawn in the moment to Nike’s featured high-tech, limited-edition apparel due to their hype factor (self-tying laces are a pretty awesome invention), it is yet to be seen whether this will lead to sustained eCommerce growth.