TEENS FIND NIKE, REEBOK AND OTHER ATHLETIC SHOES UNFASHIONABLE
MUNCIE, Ind. -- Don't expect Nike, Reebok and other athletic shoe companies to rebound any time soon from sluggish sales, says a Ball State University retail analyst.
Trendy and expensive athletic footwear has suddenly become unfashionable for today's teens, who spend an estimated $105 billion annually on retail products, said James Lowry, a marketing professor.
The athletic wear companies made famous by such athletes as Michael Jordan and Shaquille O'Neal are no longer cool to money laden teen-agers, he said.
"In the last few years Nike has done a wonderful job catering to the teen market," Lowry said. "They signed up athletes the kids could look up to and they made it extremely fashionable to wear Nike products."
He said that many teens have switched to other types of shoes, shying away from the expensive basketball, running and cross training shoes.
"The trend started changing last year when teens moved away from Nike athletic shoes and started wearing brown leather work shoes and hiking boots," Lowry said. "Once a trend like that starts, it is very difficult for companies to reverse it. Nike was popular for a long time. It may not be overly popular for several years."
Nike is the leader in athletic shoes sales. The company has exploded onto the athletic equipment scene to account for 45 percent of the domestic footwear market. Nike sales jumped from $4.7 billion in 1995 to more than $9 billion in the last fiscal year.
Another problem with athletic shoes sales are the athletes endorsing the products. Several have been arrested for charges including illegal possession of drugs and alcohol, sexual assault and driving under the influence of alcohol, Lowry said.
Teens and their parents are simply shying away from products endorsed by troubled athletes, he said.
"The shoe companies have found that many of these athletes aren't good role models for kids," Lowry said. "Many shoe companies are axing whole groups of athletes. O'Neal, one of the most popular NBA players, had a deal for $15 million over 5 years. Now, he is struggling to find another lucrative deal.
"The shoe companies have come to realize that sales aren't necessarily generated by a person making an endorsement," he said. "Today, those athletes are not able to convince the kids to buy the shoes."
Even though athletic shoes sales could be flat or decline over the next several years, don't expect price cuts at your local shoe store, Lowry said.
"Prices won't fall, but most companies won't boost the cost of a new pair of basketball shoes, which can go up to $140," he said.
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(NOTE TO EDITORS: For more information, contact Lowry by E-mail at [email protected] or by phone at (765) 285-9002. For more stories visit the Ball State University News Center on the World Wide Web at http://newscenter.bsu.edu)
M. Ransford 9/10/98
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