Nike Acquires Zodiac: What Is It?

Nike has acquired Zodiac, an industry leader in consumer analytic data, for an undisclosed sum.

Recently announcing their Consumer Direct Offense, an initiative to connect customers digitally and sell through e-commerce, the acquisition of Zodiac in the U.S. is going to be a key component in making this endeavor successful.

Adam Sussman, Vice President and Chief Digital Officer of Nike, commented on the acquisition of Zodiac, “The acquisition of Zodiac demonstrates our commitment to further accelerating Nike’s digital transformation and enhancing our consumer data and analytics capabilities to help us serve consumers globally. We’re adding world-class data-science talent and best-in-class tools to power 1:1 relationships with consumers through digital and physical consumer experiences.”

Who is Zodiac?

Philadelphia and New York City based Zodiac offers a customer analytics platform that forecasts the behavior and lifetime value of customers, both individual and segmented. Founded in April, 2015 by a team of PhD statisticians and data scientists at the University of Pennsylvania, the firm uses a company’s historical transaction logs to predict each customer’s future buying habits.

Zodiac’s mission is to understand the value of an individual customer to boost revenue and retention with the right marketing, recommendations, and offers.

Artem Mariychin, Zodiac’s CEO thinks the company is in a good place, “Nike’s incredible connection with consumers and its global scale make it a perfect home for Zodiac’s team and capabilities. We are excited to become part of Nike to help power the Consumer Direct Offense across the world.”

How will Zodiac Help Nike’s Consumer Direct Offense Initiative?

In the upcoming years, Nike has committed to going direct to consumer instead of traditional retail outlets. Nike will use apps and strategically partner with e-commerce businesses to better reach the digital consumer.

Zodiac will help identify those ecommerce partners by providing individual and segmented data on where the customers are going to get product and how they are being directed there.

Nike will invest in data analytics team members that will work to maximize the benefit and impact of Zodiac as mentioned by Nike CFO Andrew Campion, ” Our acquisition of Zodiac, a leading consumer data and analytics team, was a great example of us seizing an opportunity to accelerate Nike’s capability development. We will also continue to prioritize investment in innovation, brand distinction, new Nike consumer experiences in the marketplace and a faster, more responsive supply chain.

With North American sales not trending positively for Nike, The Consumer Direct Offense is aimed to get the sales numbers back where Nike expects them to be. Now with the full resources of Zodiac behind them, it will be interesting to see if this marriage results in a turn around on the domestic front.








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