Starbury, Dunkman Not Expected To Alter Shoe Industry Makeup
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Analysts Feel Value-Shoe Market
Will Have Little Effect On Industry |
Despite Steve & Barry’s introduction of Knicks G Stephon Marbury’s $15 signature shoe, “major player footwear companies like Nike Inc. won’t directly join the value-shoe market,” according to Andy Giegerich of the PORTLAND BUSINESS JOURNAL. Analysts said that Nike, “peripherally through its subsidiary Exeter, has already mastered the market” with Heat C Shaquille O’Neal’s $30 Dunkman line. Nike’s Shannon Shoul: “The Nike brand, the prominent driver of our company, doesn’t operate in the value channel.” Susquehanna Financial Group analyst Christopher Svezia said that having Marbury and O’Neal “in the same space doesn’t represent a growing cheaper-shoe fad.” Svezia: “It’s interesting they’re taking that approach, but if everyone bought cheaper shoes, well, it would be the demise of Nike. Shaq has been in this for several years, but people aren’t making much of a deal over this one.” Analysts also “wonder how much volume of the line will move before Steve & Barry’s even approaches a profit.” Nike Creative Dir Peter Moore: “I don’t know how it’s possible they’re profitable. All those things are predicated on volume, how many millions of pairs you’re going to make to get to that price level.” Giegerich notes “another challenge could come from distribution.” Steve & Barry’s has a “growing footprint with more than 140 stores,” but has none in the Pacific Northwest. adidas did not comment for the story (PORTLAND BUSINESS JOURNAL, 8/25).
GET YOUR KICKS: Sunday’s “Outside The Lines” on ESPN examined the new Marbury shoe. Sole Collector magazine Marketing & Advertising Dir Dee Wells said the shoe is “going to tell the other big dogs to say, ‘You know what? We’ve been shucking and jiving people for a long time. We’ve been taking some money out of their hands and now they’re paying more attention to this Starbury that’s $14.98, and we’re charging them what? $100, $150, or $250. Why?’” But Philadelphia Magazine Editor-in-Chief Larry Platt said, “We’re missing the cool factor here. There is price bias, especially in youth culture, where kids look at something and they think they’re getting something cool if it costs more, and by marketing (the Starbury One) just on price point instead of cool or hip factor, it doesn’t bode well.” ESPN requested interviews with Nike, adidas and Reebok to explain their pricing philosophy; Nike declined and adidas and Reebok never responded (ESPN, 8/27).
CREDIT TO STARBURY: ESPN.com’s Chris Broussard wrote, “I applaud Marbury for putting out a shoe that parents can easily afford and kids can wear without being teased. ... And because Marbury will be wearing the shoes in NBA games, ... [they] will be legitimate” (ESPN.com, 8/28).
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