Originally Posted by rawdawg34
bottom line is...the XII didnt flop. The XI didnt either. they wised up and flat out produced more after the XI. retailers in turn wised up and started selling them at a discount almost on day 1 to get rid of stock.
anyones area is a grain of sand at the beach in comparison to the global market for nike signature shoes. i didnt see many people wearing the XI either, but that doesnt mean they flopped
I'll add to this as I have some experience working Nike retail. The key thing is margins and no surprise but Nike/JB footwear have fantastic margins.
The $200 LBJ XIIs are sold to most retailers for $100 a pop, while higher volume retailers like Footlocker, Champs, Eastbay get gem for about $85 as they tend to order thousands of pairs of Nike/JB product overall. You guys may also find this interesting but Nike retail - flagship stores, outlets, employee stores, online pay $85-$100 too, they don't get them at Nike's 'true' cost.
A very small portion of the sneaker-buying public will purchase a sneaker at $200 but most will find $140-$160 to be a 'good deal'. With Nike churning out so much product in a very short period of time it doesn't make sense for the retailers to have 10+ colourways of the XII retailing at $200 with the hope that the sneaker-consumer will cave in and shell out full price. Also bear in mind that there are warehousing costs, shelf space, etc... so a smaller retailer will probably hold out longer than a larger one.
Back to the subject of losses and flops - as long as the Nike sells their product at $85-$100 to the respective retailer, said shoe is NOT a flop. However if that shoe is RTVed or returned back to them and it has to be blown out at an outlet for $40 then yes, you can consider it to be a flop.
One thing of note, is that in the past - they were producing fewer colourways in higher quantities, now they produce lesser quantities but in more colourways. The shoes are also not as technically complex to manufacture as they were in the past seeing as everything now is mesh and plastic with seamless, one-piece, modular designs.
Hope this sheds some light on this discussion.Edited by vood99 - 7/10/15 at 1:17pm