Comments on SneakerPimp.com Wall Street Journal article

Nike fully understands that the secondary market drives future Nike sales, not only for Nike, but for their retailers.

When people see Dunks and AF1s selling for well over the original retail, it only whets appetites for future releases. Collectors/dealers will scour Niketalk and other sites, waiting to hear where/when the next "hot" release will drop. When it does, their is a mad rush to go and get as many pairs as possible before they sell out.

And when shoes sell out, guess who is happiest of all? The retailers. The profits they reap when a shoe completely sells out it's size run makes up for the numerous Nike models that have to be sold at or below wholesale cost due to lack of customer demand.

Nike has a unique position in the business world, in that Nike has the ability to manipulate demand as well as supply. I'm not thinking too hard to come up with a major corporation in a similar position, but none comes to mind. If someone does have another example, please post it.

While Nike may want to tighten the supply chain somewhat to prevent eliminate some of the more egregious abuses by their retailers, Nike is not going to tamper much (if at all) with the environment that creates such a huge, pent-up demand for Dunks, AF1s, etc. As was pointed out by Caraval15, it was but a few years ago when Dunk LOs could be found marked down into the $20 range (I personally know an online retailer/NTer who picked up some substantial size runs of the "Georgetown" Dunk LOs from various FAs in that price range).

And don't forget that AF1s have been around for a couple of decades now. Do you remember AF1s being so popular worldwide back in the late 80s, early 90s? Nike obviously isn't going to do much (if anything) that might wreck the current success they're experiencing with AF1s.

E and JG seem to be fairly smart. I'll give them the benefit of the doubt that they have been keeping meticulous business records, and have been reporting their taxable income faithfully..... :smile:
smile.gif


All smart gangstas know that the easiest way to lose your position of power is to get smacked by the authorities for tax evasion. Al Capone is the prime example. I personally know a few people who diligently pay taxes on the illicit profits of their enterprises (which I can describe as "shady" at best, and downright illegal at worst). The IRS cannot report you for being engaged in illegal activity, unless you are in violation of IRS regulations.

Those are your emotions acting without the benefit of intellect...

I ain't got time to bleed...
 
verooka

i guess that explains why the AF1 horses were retailing at 80.00 GBP there and not 64.99 GBP.

their range of nikes is basically the same "limited" range that you can pick up easily if you know where to look.

not that special at all.
 
Through all of this, before and now people have really wondered what Nike's opinion of their consumers were. Whether it was "The more money we make the better" or "We want to make money obviously, but keep our consumers happy." Depending on what Nike does (which was nothing yet and they HAVE known about this way of reselling) either reprimanding the mom and pop stores releasing early and/or selling to wholesalers, or not we will see.

If indeed they reprimand these stores in violation it will be because they want every possible person have the opportunity to purchase the shoes, and go to the stores to see more Nike products. That is one of the main reasons why not every product Nike releases in on Niketown.com. So that when someone goes into a store to actually buy a product they see a multitude of other products that match the characteristics of what they came to purchase, and Nike hopes that will convince them to buy more products. it is totally different seeing a shoe online and in person for obvious reasons that you cant tell such detail when you see it in person and the actual wow factor you get when you hold a shoe in your hand.


Another opinion I feel I have to share is one concerning the members issue. 18k almost 19k members. As the mods have done (for the betterment of this community) by allowing no members in August I believe, they will have to continue the policy for months ahead. With even more publicity on the WSJ itself, one of the most read American publications, although not by the majority of Nike Talk's members, will result in even more people wanting to join. While I do believe everyone should have an opportunity to offer their information and contribute to the community, sadly, most do not. How can we properly separate the good from the bad? Or ho could we decide what members should join and which shouldn't? Maybe its impossible but I think it is something that should be closely looked at.

Hopefully this report will not change this community we have that is such a huge part of a lot of our lives. Congrats to Eric and his partner in crime....no pun intended.
Dog my projects got taste, although the rent aint nuttin but two fitty, we sportin five thousand dollar drapes
 
IT has already happened, Footlocker is charging customers $93 US for Horses and West Indies in Canada.

Cash rules everything in this world.
As long there is a demand for the shoes there will always be resellers, pimps..etc.

Alot of ppl around the world depend on Nike. Ppl making money off Nike. Shoe stores excluding Footlocker, Footaction.....
 
This is one the single greatest posts in NT history, no doubt headed to the archives.

All the main points have already been made, but I think we as a community need to show Nike what's up. Alot of people hold Niketalk responsible for the retroing of the Black/Red XI. Numerous times we have shown that Nike does listen to us, we just need to speak loudly enough for them to hear. I believe that this should be our invtation to challenge Nike to pick itself up off the artistic floor. More and more Nike is just concerned with churning out crap after crap, and we do nothing but sit there and buy it! We need to show that something has to be done, and done quickly.

We need to find a way to kick Nike in the *** and get them back to the way they used to be.
[size=-2]Easa

plo_is_back@hatertalk.com

The Return of Hatertalk[/size]
 
Really think Nike will take action? Look at the graph Collie posted....that will answer any and all questions.
[table]Don't worry about Brooklyn I continue to flame
Therefore a world with amnesia won't forget this name
You see me, ice spinnin', jigged out, white linen
And if a chick don't like me she must like women[/table]
 
I do believe that Nike will change someday, when this corporate GIANT sees that all these will eventually backlash.

As big as Nike is, they simply cannot sustain success by hyping up retros, by rushing out literally hundreds of exclusives. They will see short term success business-wise, but in the long term if they don't start to invest real money into the design aspect, they will eventually loose out, trust me.

I'm loving the progress adidas is making and I know there are not a great deal of Adidas supporters out here but their recent releases are , what i feel, products of passion from the designers...

One day (and prob in the near future) fashion is going to take a sharp turn and retros will not be as welcomed by the public as they are now.

They have to go back to the good old formula if they wanna sustain their dynasty. They have to be the most innovative and creative shoe company out there who's not afraid to try and fail even they'r on top of the other brands, like they have always done in the past.

Nike has proved herself to be the best experimental player in the field, and they should continue to do that.

Keep re-inventing, not retroing.

(although as a collector I'm more then happy that shoes like the escapes are retroed 'properly'. Just keep them coming nice and slow... don't try to choke us !)










Always looking for V with #23 in white/fire red and VI carmines, air pressure, command forces and FPKG II royal/white DS in US 11-12
 
nike is a multi billion dollar corporation....go buy some talent with that money. then MAYBE people will regain interest in something new.

and what happened to the big swoosh? where did it go.........shox, posites...........



indifferent.gif

Air Mack$ extra value meal with cheese - WHERE'S DA BEEF

[table][tr][td][/td][td][/td][td][/td][/tr][/table][table][tr][td][/td][/tr][/table]
 
Good points altogether. I don't like the article either. I think it brings the whole shoe game into the open.

CJM
 
I'm dumb can someone answer some questions for me.

1. Doesn't Nike Make a profit off of every shoe that goes out to Shoe Stores?

2. Nike doesn't make profit from Player Samples correct?

3. Wouldn't Ewayz article in the Wall Street Journal only help nike sell more product?

4.Does Nike really care if shoes are sold early? It's only money in there pocket.

5. Why would Nike care if a wear test sample was sold? Why don't they just have certain Nike Employees wearing them?

As I see things as long as they have a good profit and continue to sell product, why should they take further actions?

But are they losing money?

Is this even about money?
WWW.JUMPMAN247.COMNikeTalk's Rules of Conductjumpman247@yahoo.com
 
I think the problem is we live in a society where novel products sell. There doesn't have to be anything truly special about it. All that is required is it's new. If we were more judgemental about the products we embraced it would force companies like Nike to be more particular about what products they release.

We need to be more selective about what we choose to endorse through purchasing only the products that are considered quality. I know many of you feel this need to "get them all", but maybe holding off on adding so many sneakers you deem worthless but only purchased for the sake of having a complete collection bring about a change. If Nike sees we're not going to buy just anything, things will/should get better.
 
I don't see how you guys can say this is one of the best posts as it is one of the dumbest for this reason.

JJ says he doesn't think the publicity will help all us sneakerpimps out but posts on the one board where all the major players like Nike / Footlocker / Finishline visit to get a sense of our direction. Nike and its hounds are on this board more than any other place on the net (except that one porn site). And to keep a post like this alive really shows Nike what we do and think. Guess what, this is serious business for Nike, they want to stop all the International kicks from coming in as well as the small releases from being sucked up by sneakerpimps across the land. They are in the midst of re-thinking their tactics as we sleep. The net has changed the landscape of this area and we all have to play it right. Waking up the monster surely doesnt help out cause.

Sneakerpimp said he is not going to be in this business for too much longer and obviously he doesn't care if he spoils a good thing for the rest of us. He reminds me of that magician that told all the secrets on broadcast TV. The fans loved it by the other magicians surely didn't.

The biggest player on the net by a multiple hasn't posted on this thread yet. If anyone is rocking the boat it is him as nobody else has even came close to the volume and depth that these guys have. I'm sure there is a reason he isn't on here laying down the law probably for the reason he doesn't want to have even more hits on a contradictory post.

And yeah, the tax man is a serious dude and he will take 30+% of your profit after write offs. That's right, 20+% personal and 12% for small business and this is just Federal. State, add some more. And if you lie about your taxes then your going to get hit with more penalties than the original amount due. Bank records, PayPal, Credit Card receipts, they are all fair game for the tax man to hound.


NikeTalkin
 
You might want to say that this in not about money but about Corporate image. Up to this point, Nike has always said JUMP and the retailers say how high. The reason is that Nike is what sells. Or at least it used to be. Now Nike has had to make amendments on it's old policies. It takes back stuff that doesn't sell. You see stuff like shox which normally were never supposed to go on sale now discounted to ridiculous levels. Retailers have more leverage now because Nike is no longer the only kid on the block. Most mom and pops I know break even on Nikes and make their money on Sketchers and Wheelies.

However just because Nike has make concessions doesn't mean that they will let you sell items before deadlines and in bulk to ONE customer. They will do whatever they can to deter that because it limits the people that they are trying to get to. Remember the Tri-City debacle? They released the AJ11 b/r early and some NT members went in and bought them early. Well, I heard that Nike cancelled their Jordan account. So Nike is serious about cracking down on this stuff. It's about protecting the corporate image.

The only thing I don't understand is if they care about corporate image and policy so much, why have all the recent releases been so crappy?
 
Higher stock price means zero. Nike's stock has split a number of times and has many more shares that Reebok. The value of Nike's stock as a whole is substantially higher than queenbock.

NikeTalkin
 
No it doesn't. NFL uniform contracts mean nothing. Just cause Reebok has it's logo pasted on everything doesn't mean it will sell. Nike gave up on bidding against Reebok for the Uniform contracts because it didn't make any money off it. Reebok made a mistake. The jerseys won't sell. It's just expensive advertising.
 
starter used to make quite a bit of authentic jerseys and licensed apparel.

shoes even, if i remember correctly... didn't glen rice wear them? or was that champion?

nike's market cap == US$16 bil >> reebok's market cap == US$1+ bil (if memory serves)

-eric
 
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