Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Monday, September 5, 2011

Nike Air Force 1

Nike is one of the few companies to ever not have their finances go into the red. They changed their name to Nike from Blue Ribbon Sports in 1978. Four years later, Bruce Kilgore designed the Nike Air Force 1, the first basketball shoe to ever feature air technology in it's sole. This one shoe (offered in three different stylings: high, mid, low), along with Air Jordan series, and the Nike Air Max line are the biggest reasons of why Nike's finances have never gone in the red. The AF1 was released with no advertising and was initially seen as a failure, it was only produced for a couple of months. In the late 1980's and early 1990's the shoe was rereleased, around the same time that Air Maxes and Air Jordans were at their peak. In the 29 years since the shoe was originally released it has raked in over a billion dollars for Nike and in 2005 it was estimated to have a profit margin of 70%. Not only that but the Nike hasn't spent a single cent on advertising the AF1. The Nike Air Force 1 is still being produced and worn today. It's regarded as one of the most significant shoes in sneaker culture.


Smith said...

How can you relate this to some topics we have covered in class?

Wei.L said...

In Taiwan, the scarcity of the all white or all black Nike Air Force I is a lot. Many people in Taiwan want the shoes but there isn’t enough supply for them. For the people who missed the chance to buy it when it was in, they could ask people who lives at the supply area to buy it for them, but the price will be higher than just getting it in the Nike store for the shipment. Or they can buy it on eBay or other website which risk of buying the fake one.

Upper School Government and Economics said...

This is a very interesting post because it describes nike's sucess economocally. why has nike been so sucessfull? economic strategy? correct marketing? nike was very smart to take the shoe off the market and put it back on.

Jack L.