CA-based Vans Inc. "has caught a rising wave in the
youth-driven world of athletic shoes," according to Joseph
Pereira on the front page of the WALL STREET JOURNAL. Among
a "growing cadre of teenagers and preteens ... names such as
Nike and Reebok often come up in the past tense." Pereira
writes that while U.S. sneaker sales grow at a "minuscule 2%
a year," some "generally obscure" shoe manufacturers, such
as Vans, Etnies, Airwalk and DC, have seen annual sales
gains of 20-50% in the past two years. In the process, the
niche companies' annual sales have "ballooned" to $500M, or
7.3% of the $7B U.S. sneaker industry. Pereira reports that
Vans' sales "shot up" 26% to $159M in '97, and that despite
the "collapse of its distribution system in Japan," analysts
forecast a 13% sales gain this year, to more than $180M.
While Vans has increased its sponsorship of alternative
sporting events, "a more important key to Vans' future is
its cadre of 236 athlete endorsers. Though relatively
unknown ... they attract lots of grommets. And their TV
profile is rising." Vans also "encourages its athletes to
help it design its shoes and create its low-key
advertising," and Vans' endorsers say they have turned down
offers from other shoe companies, even though Vans "seldom
pays its promoters more than $100,000 a year." While Nike
is "making inroads" in the market, Vans "is well aware of
Nike's footsteps and reckons it can hold its own and expand
nicely in its niche" (WALL STREET JOURNAL, 4/16).
