the fruits of imagination: Cheap kicks

Basketball shoes are not a topic on which I profess any knowledge (Air Jordans are good, right?) but I just read something that sure sounds like it might shake up that category. Check out this article from BrandWeek on Starbury, the new line of shoes from the Knicks' Stephon Marbury.

His shoes are launching with a whole new economic model: in a category where $150 price points are the norm, they will retail for $14.98 (no, that's not a typo, fourteen dollars and ninety-eight cents). Apparently, they didn't have to sacrifice quality, either - the shoe was created by designers who've worked with Nike and Fila, using Marbury's input, and Marbury will be wearing these exact shoes when he plays this season. That's right, an NBA star will be playing in $15 shoes.

So what's the catch? It turns out that b-ball shoes, even good ones, aren't very expensive to make. The vast majority of Nike or Reebok's mark-up is in marketing costs. By avoiding typical shoe marketing, Starbury hopes to pass the cost savings on to the masses. So Marbury has forgone the big up-front endorsement contract, and is instead taking a percentage of sales. The line is being exclusively sold at Steve & Barry’s, a discount sports apparrel chain that also doesn't spend money on marketing. Instead Starbury and the retailer plan on using tactics like courting basketball shoe blogs, shooting guerilla video of Marbury playing in the shoes, and sampling at urban pick-up games.

New economics + new marketing = new iconic shoe?

thanks to John Grant for noticing the story

Comments

Today people are lining up to purchase disposable furniture from IKEA & disposable clothes (a la H&M & ZARA)so I'm not surprised that the trend has gone to running shoes.

I'm disappointed that they are not going to advertise, because I'd like to see how they speak to the economics of the product + the performance ability. Either way, we'll get to see how open the consumer is to bringing these two worlds together. IKEA, H&M & ZARA all speak to "high fashion" but it's of the day - no one is arguing that these products are going to last (or are that great to begin with). But to try and merge the price + performance... it's an interesting proposition.

Speaking of which, "The Parachute" by Sinclair Dumontais speaks to exactly this proposition - with shoes. I recommend the book, it's a satirical look at marketers today & the world of R&D. Looks like Sinclair's joke has become a reality.

Posted by: mpalmer | August 23, 2006 at 03:38 PM