The athletic shoe business "has lost its footing," and
can't "regain its balance," according to USA TODAY's Bill
Meyers. Sales growth fell from 8% to 6% last year, and
analysts predict the figure will drop to 4% in '98. The
soft market is "bad news" for athletes who could lose "huge,
cash-rich endorsements." Hambrecht & Quist analyst Shelly
Hale Young said that shoe deals "will come down" in value
and that players will lose "lucrative deals." Gruntal & Co.
analyst Michael Conn: "The hero shoe concept is just not
working." Meyers adds that shoe prices are "another
problem," as shoppers are "increasingly reluctant to buy
sneakers costing more than $100" (USA TODAY, 2/13).
REEBOK: Reebok is reducing its projected sports
marketing budget by as much as 30%, and is channeling the
money into other areas, including its Ralph Lauren and
Rockport shoe line. Meyers reports that the company "hopes
another remedial strategy will strengthen its links to
soccer and mountain biking. The new approach has forced
many of Reebok's athletic endorsers to consider other
options," including Shaquille O'Neal. Meyers adds that if
O'Neal "parts ways" with Reebok -- look for a decision soon
-- he could start his own footwear/apparel line. O'Neal's
agent Leonard Armato: "Shaq would be his own brand. There
wouldn't be a middleman. He would create his own image and
have control over his brand management" (USA TODAY, 2/13).
