Cheap shoes that are a favorite of the AARP set, versus ghetto shoes that cost $200 a pair. Who wins?
I recently read that NIKE, the preeminent sneaker company, has experienced a decline in sales after venturing into the "lifestyles" segment (whatever that is). It is not the first time that storied company has made mis-steps. The history of NIKE, like the history of sneakers in general, is fascinating.
Legend has it that the original "waffle trainer" was literally made by melting sheets of polyurethane rubber in a waffle iron. The founder of the company was selling them out of the trunk of his car at running events and business took off - boosted by the running/jogging craze of the 1970s.
Well, that history includes signing Michael Jordan (a brand still sold today!) for one of the earliest sneaker endorsement contracts (a business worth millions if not billions, today) and the brand really took off.
There were, however, still mis-steps. The sneakers were expensive and certain models created a beany-baby-like craze. Inner-city kids started shooting each other over sneakers, and this created bad optics for the company.
But in the suburbs, sneakers in general became some sort of status symbol, like the unobtainable handbag or the fancy Swiss watch. Fancy Italian loafers were out - expensive sneakers the color of tennis balls or highway cones, were in - even for office wear!
People started buying sneakers not to wear, but collect!
But that changed recently due to a number of factors. Spending $100-$200 (or more!) on a pair of shoes seemed foolhardy in a tightening economy - at least for some of us. And the shoes were hard to put on, for an aging population, and didn't last more than a year or two before the expanded polyurethane foam soles compressed, or the rubber delaminated (Shoe Goo only works once!).
Enter Sketchers. Originally a "Sk8er Dude" brand, it morphed into a slip-on shoe popular with the elderly and obese (which describes half of America these days). These started out as slipper-like shoes, and as I noted at the time, pretty poor for walking. But while NIKE was sketching out their designs for yet more bizarre-looking footware, Sketchers came up with new designs that were more functional and comfortable - in particular, making the shoes fit tightly yet comfortably, so that you can wear a "slip-on" shoe for extended walking.
Priced at $35 and up (and not much more) they have been selling like hotcakes. This makes me wonder whether NIKE's decline in sales could be linked to the rise of Sketchers. Cheap, comfortable shoes, with largely conservative styling, which appeal to an aging demographic - sounds like a market winner.
Expensive, gaudy shoes, which require lacing and are more popular with the younger, urban set - is that a growing demographic in aging, fat America?
But, take heart, NIKE! Sketchers was recently acquired by venture capital - and you know they can screw up a wet dream!