Takeaway: This seems a little bit odd, but after we re-read this article a few times, it made perfect sense. Nike is about to revolutionize the way we design, manufacture and buy sneakers. FlyKnit technology is a big part of that. In other words, a shopper could go into a store, design a shoe, grab a burrito at Chipotle, and come back an hour later and leave with the brand new custom shoe that was assembled in the back room.
This is one of the only industries where we haven't seen any major disruption to the typical wholesale model in at least 40 years. Nike is starting to push the envelope on that front.
We identified how important customization was to the 18-24 year old demographic, with 100% of customers who shop for athletic footwear online saying that the ability customize was the reason why. One of the problems with consumers designing shoes is that they can't see the end product. Now, with this patented technology, consumers can put on a pair of goofy glasses and design 3D shoes in store.
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Editor's note: This is a brief excerpt from Hedgeye research courtesy of our retail sector team led by Brian McGough and Alec Richards. Click here to learn more about how you can become a subscriber to America's fastest-growing independent financial research firm.