Nike Introducing Low-Priced Athletic Shoe Line Tailwind

Nike Launches New Tailwind Line For Women

Nike’s discount footwear subsidiary, Exeter Brands Group, has unveiled the Tailwind brand of athletic shoes for women, according to Helen Jung of the Portland OREGONIAN. The line of shoes, which are priced from $19.99-$34.99, are designed exclusively for Payless ShoeSource. They “reflect Exeter’s ongoing strategy to leverage Nike technology and design expertise for products that can appeal to the discount market” (Portland OREGONIAN, 2/27). BUSINESSWEEK’s Helen Walters reports that the line launches today in three Payless stores in Manhattan and Brooklyn. It will initially be available in 400 Payless stores in select markets, “though by December it will be stocked in pretty much all of the retailer’s nearly 4,600 stores nationwide.” Former U.S. women’s soccer player Brandi Chastain was “involved in Tailwind product development and design, and she, along with teammate Hope Solo and volleyball player Logan Tom, are the front-and-center faces of the brand.” The shoes are made from “various materials, including mesh, leather, and synthetic suede,” and feature “cheerfully bright colors and are certainly sporty looking.” Exeter President & CEO Clare Hamill: “The designs are on-trend but not trendy. They’re expressive and beautiful — but we were also looking to get some performance, too.” Walters notes the success of low-priced performance shoes like Steve & Barry’s $14.98 Starbury One, and writes, “Nike is showing it’s not going to treat lightly any threat to its dominance within the footwear market” (BUSINESSWEEK.com, 2/27).

SUB POP: BUSINESSWEEK’s Walters notes in FY ’06, Nike’s six subsidiaries generated $2B in revenue, “compared with the $8[B] growth the company projects over five years.” Nike President & CEO Mark Parker “predicts subsidiaries will contribute around 25% of Nike’s revenue growth” over the next five years. Citigroup analyst Kate McShane said, “We believe Nike’s ‘other’ business — which is composed of Cole Haan, Nike Bauer Hockey, Hurley International, Nike Golf, Converse, and Exeter Brands — is a major driver of Nike’s business. We estimate this category will generate around $2.3[B] in revenues, or grow 16.5% during Nike’s [FY ’07]” (BUSINESSWEEK.com, 2/27). NPD Group Chief Analyst Marshal Cohen said that the Tailwind is “breaking new ground in the $3.5[B] mass market athletic shoe market because of the footwear’s technology.” Cohen: “This takes the low end to a new extreme” (DOW JONES NEWSWIRES, 2/26).