As Nike continues to increase the prices of its signature shoes, one might ask, “Is there a limit to how much people will pay?”
The answer is no.
As shipping, materials, and labour costs continue to increase, analysts say that Nike raised the prices of their clothing and shoes by 5-10% back in 2012. One of Nike’s latest shoes released was the LeBron 12, which will put you back between $250 and $300 if you’re willing to buy the shoe. Most people might think, “250 dollars for a shoe? That’s absurd,” but the reality is that its not.
Nike has positioned themself as a global leader in the footwear and apparel industry. As Ries and Trout explain in their article on Positioning, Nike has positioned themself in the mind of the consumer as the top brand in the industry. Consumers want Nike shoes on their feet, and are therefore willing to pay more money for Nike products.
In December, the Air Jordan (a Nike brand) Legend Blue 11s will be released and will retail for almost $300. I, along with almost 1000 other people, will line up overnight at various retailers in Vancouver to buy these shoes. Again, one might think that lining up overnight to pay $300 for a shoe is crazy. The fact is, Nike has positioned themself in the consumer mind as the best footwear company and people are willing to pay hundreds of dollars for the signature Swoosh or Jumpman logo on their shoe.