- Apr 29, 2008
- 1,138
- 436
Sorry been a long day and I dont get to hop on NT like I used to....Ayi... you are correct in some aspects but let me correct a few points..
In the last 5 Years Sneakerheads or the Energy releases have started making up a LARGE portion of different signature lines.
Since the HoH inception (and its some what lack of execution on the concept) Sig lines have done well across the board on limited releases..
Just imagine... 15 colorways released on a semi limited basis giving every store a two size run limit except for larger stores. This beats out doing 3 or 4 colorways on a much larger distrution of 4 to 5 size runs per store.
Although the Bron line has become somewhat saturated with colorways its giving options plus the Digital Division making money on NikeIDs.. Thats pure profit. 55 percent for Basketball 45% for Digital which Nike keeps all of it.
Now NSW is making money on the Corks as well. That isnt going to Nike Basketballs bottom line. So you have different divisions competing for dollars on the same signature athlete.
Nike Cortez used to be a California shoe, just like AF1 were (to avoid a DC/BMore/NYC argument) East Coast shoe. Both have popularized into cross regional shoes. Just as the Foamposite has.
Nike also makes a ton of money on their "Basement" Division which sells to stores such as *****, Modells, Kohls, and other non traditional Sporting Goods stores for families. This is where you will see take Downs and shoes such as the infamous "Monarch" which has sold almost more than any other shoe in Nike's History. Designed by Jason Mayden.
While you are right on the biggers buyers such as FTL and FA balking at prices they also get to RTV shoes unlike other buyers... so if it doesnt sell they can return it and get a credit it.
Some mom and pops cant afford to risk high inventory so they dont buy everything offered and Nike either doesnt produce it or lowers the price.
This is based on Consumer demand and prior buying habits on particular models. Ex: Zoom BB was a great shoe in booty colors.. Didnt do well so Buyers didnt want to touch the BB2 at high numbers... making the BB1.5 a Euro only release due to it being a Euro inspired shoe. If that makes sense.
As to your point of using Corks to get you in the door. This is a practice heavily used at Nike.. but its to get recogniztion of not only other limited or almost limited shoes but inline (general released shoes).
I think for the most part you made a lot of good points.. but Id hate for some folks to think thats the exact way it goes down.
Each One Reach One Teach One I say...
While I can agree on some points I cant agree on them all.....Yes you correct..The HoH experiment...although NOT what it was intended to be (we've both agreed on this before) does produce a steady stream of income for PARTICULAR FootLocker locations....Which will eventually go away as FTL corp now has an annual percentage increase of mainline stores being upgraded to HoH by year end.....the dollars...always about the dollars... I believe the count is in the teens and should be in the 20's by year end with the expectation to be in the 30's to 40's by 2015...The "GIMMICK" so to say will have jumped the shark (dating myself with that term)
With that being said...the FNL of the world now are trying to figure out how to better brand there stores or separate them to also increase revenues....Lebron Lines are now evident..so is Kobe...and I hear Foams are on the way....
But again...I say that to say this....the QS or Limited colorways...while yes even with a double size run...are just that LIMITED...Ask your favorite Mom and Pops...it aint the Yeezys that keep the lights on...its the dudes that come in day in and day out copping the inline items....thats were the margins are...
To SneakerMane who I do respect because if anyone...you and KnicksSoFresh (who I havent seen in a min) have really been Lebron fans since what feels like day one....You have to understand...NT dudes get emotional....Nike dont care about you...this is a business....When I say kid in Topeka Kansas..its about the LOOOOOOOOONG money...I travel pretty extensive..and outside of the major cities..while yes there are malls...and yes there are sneaker stores...by NT standards...they pretty much SUCK....So what you telling me that all these stores lose money cause they dont carry CORKS???? Please half these people that live in ButtBack where ever never even seen a QS let alone have stock of them...Cause in ButtBack..you look ridiculous with sneakers made of Cork or Kicks that glow in the dark.......
NT Dudes go in and go out....Example....how many dudes are unloading there SB's on ebay these days (straight crackhead prices) cause they have moved on....And yes I realize that Nike is Nike...so with that..even if you buy from the left or right...its all the same pocket so either way Nike is good....But the truth is...the Sneakerhead Demographic is very FICKLE....Todays Cork will be yesterdays Tiffany which could be tomorrows Skytop (memba when Supra had some steam behind them???? What the hell happened there)
BUT...them damn Cortez keep getting cop'd....Running shoes continue to do well....
And to the homie who starting talking about AF1 then went into comparing them to Jordans....I stopped reading once he said Jordans....AF1 been around FOREVER...Gonna be around forever.....Only sneaker in Nike Arsonal that has zero dollars allocated to its advertising budget (with the exception of Clark's free sneaker budget...ohhhh sorry I meant the "influencer account budget"...lol.....bastards) From a business stand point...AF1 reigns supreme...Cortez aint far behind...Then I think its some off the whole joints like the Blazers....
Again...there is business...and then there is NT....sometimes they co-exist in the same space...but generally they are worlds apart...