Nike hopes new shoe puts spring in sales
NEW YORK – Nike unveiled a new running shoe here Tuesday that’s designed to give athletes more spring in their step — and possibly add a badly-needed bounce to the sneaker giant’s North American sales.
The Nike Epic React Flyknit, which officially goes on sale Feb. 22, features a special foam dubbed Nike React the company says provides a unique combination of lightness, comfort and performance. The company is counting on the shoe appealing to a variety of runners, whether they’re trying out for their high school track team or competing for a spot in the Olympics.
“We know that the versatility of this shoe is going to be great for an elite runner. But for someone who’s new to the sport, this is also going to be a really inviting shoe,” says Brett Holts, vice president of Nike Running Footwear. “We feel (it) will appeal to the majority of runners out there.”
The athletic shoe industry has been in a race to keep up with the shifting tastes of consumers who in recent years have often been more interested in style than performance when shopping for sneakers.
It also has had to adjust as sporting apparel chains such as Foot Locker and Hibbett Sporting Goods, longtime go-to’s for athletic shoe shoppers, have struggled to offer the variety and buzz-worthy styles sneaker fans crave.
On Tuesday, members of the media tried out the Epic React at an event space in Manhattan, running a course, bouncing on a trampoline, grab- bing airborne feathers and plunging into a foam pit to sample the shoe’s features. They were joined by several elite athletes, including Laurie Hernandez, a member of the 2017 gold-medal winning U.S. women’s gymnastics team, and Aries Merritt, who holds the world record in the 110-meter hurdles.
The event was an example of how Nike and other players in the $17 billion sneaker industry are trying to
create unique experiences and products. At New York City’s Nike Soho, for instance, shoppers can look at a giant screenshot of Central Park while testing running shoes on a treadmill or try out basketball sneakers with the legendary Dyckman Park basketball court projected in the background.
The goal is to capture the attention of a market that no longer is loyal to a single signature shoe, like the 1980s when Air Jordans were the envy of the industry.
Sneaker buyers currently are more fixated on fashion than performance. They are increasingly as likely to go online to buy from Amazon as they are to hotfoot it to the mall to buy a pair at Foot Locker.
Nike remains the biggest in the field with 37% of market share as of August, according to sales tracker NPD. But Adidas is hard on its heels, winning 11% of the market due in part to the popular Yeezy sneaker, created with rapper Kanye West.
In September, Nike reported that its profits slipped in the previous quarter due to lower sales of its clothing, equipment and footwear in North America. Nike’s net income was down to $950 million from $1.24 billion in the quarter that ended Aug. 31. While global sales were essentially unchanged from the same quarter the previous year, they were down 3% in the critical North American market.
But Nike has touted its strong growth overseas and says that in the fourth quarter of last year, its running category experienced 8% growth. Its Kyrie 3 is also the top-selling basketball shoe.
Nike has used foam in other sneaker lines, but it says the new “react” foam is a more seamless version. Nike’s inhouse designers and chemists worked on it side by side for three years, the company says.
The company has been looking into new ways to push its merchandise. In June, Nike said that, like rival Adidas, it would team with Amazon, selling a limited selection of shoes, apparel and accessories through the site. Previously, its products had been sold on Amazon through third-party vendors, undermining the brand’s pricing power.
The sneaker industry had $17.4 billion in sales in 2016, up from $16.1 billion in 2014, NPD says.