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Nike has a secret to get you to spend more money

Oct 22, 2015, 00:06 IST

Nike

Nike has a few tricks up its sleeves to get you to think a product is more "premium."

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One of these tricks? Add thumbholes, industry website Sole Collector reports.

"You have this belief, and you price it at what you believe the consumer will pay," Jeanne Jackson, Nike's president of distribution and merchandising, said at the company's investor meeting.

"We're getting a little bit more scientific about it. We're spending time doing deep analysis. We recently just did one on shorts, where we literally looked at every short in our competitive space, did price value equity studies with the consumers, had them tell us what do you think this one's worth versus this one, what details on the shorts - make it worth more," she added. "An interesting one on tops is we suddenly discovered in tops that if a top has a thumbhole in it, the consumer perceives it is a premium top. So we're getting a little bit more scientific about what those features and benefits are that the consumer will perceive as worth more money."

The thumbhole philosophy may seem mockable, but this strategy is obviously working.

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Nike is the top apparel company in the United States. It has bypassed former teen staple Abercrombie & Fitch to become the most loved brand by teens, according to a recent survey executed by Piper Jaffray.

Another trick up Nike's sleeve? Having the most advanced technology. In September, the company introduced its new cold weather line, as well as new apparel with cooling technology.

Quite simply, no retailer has caught up to Nike - yet.

NOW WATCH: 11 little-known facts about Nike

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