Blog #2: Yeezy Yeezy Just Jumped Over Jumpman?
Sneakers can either be something you put on your feet and forget or present-day baseball cards, depending on what type of person you are. The towering giants in the footwear industry are obviously Nike, Adidas, and Jordan. Even if you aren’t a sneaker-head, you definitely have heard of these three brands or maybe even learned about the lengths some consumers go to acquire the shoes they want to add to their collections. From extensive overnight line-ups to violence, these commotions would lead many to assume it’s just another weekend where die-hard fans are yearning to put their hands on a new pair of basketball sneakers. However, just recently on September 19th of 2017, Adidas climbed over Jordan Brand to secure the #2 spot in U.S. sneaker sales despite having endured struggles just a few years earlier. Additionally, their main competitors Jordan Brand and Nike, who actually work together, have been seeing declines rather than growth in recent years. As an avid sneaker collector, myself, it is very interesting to see many elements of business at play in my passion for sneakers. Personally, I, along with others, think that the decline of Nike and Jordan Brand and the growth of Adidas can all be rooted in the recent poor business decisions of Nike. Their efforts in maintaining strict control over their brand resulted in several instances of Adidas gaining a lead over their rivals. Firstly, Nike’s cold shoulder with collaborators resulted in big names such as Kanye West leaving the brand and working with the competition, Adidas, instead. Kanye West’s sneakers being highly demanded meant that Nike effectively scared away easy large-scale publicity as it is likely not a coincidence that Adidas began their rapid growth shortly after welcoming Kanye West onto their team. Secondly, Nike’s lack of innovation in their products while inflating their prices, by pumping out the same sneakers and increasing the prices each time, even the most die-hard of collectors were getting bored. In comparison, Adidas was constantly revamping their product lines, with their recent sneakers utilizing the best of current technology, drew Nike consumers into the German sportswear company and further deteriorating Nike. From this, I realized that in the world of commerce, anything is possible and the tide can turn very easily once any business starts making unwise decisions, getting ahead of themselves and disconnecting from reality as seen with Nike’s overconfident business decisions. Additionally, I realized that it doesn’t matter how influential a business can be since there will always be room for competitors to leap over you as consumers will not wait for you if the other kid on the block has something shinier and cheaper.
Imagery Source:
-https://hypebeast.com/2017/2/adidas-boost-technology-explained