Monday, October 31st, 2011 at 9:10 am  |  8 responses

NBA Lockout Could Cost Shoe Companies $500 Million in Lost Revenue

We’ve seen all kinds of clever ads during the NBA lockout from shoe giants, but the reality remains that without actual basketball games happening, it’s hard to get people to buy signature kicks. Reports USA Today: “Basketball shoe marketers such as Adidas, Nike and UA, and national retailers such as Foot Locker, could lose up to $500 million in sales if the 2011-12 NBA season is wiped out, says Marshal Cohen, chief industry analyst at the worldwide market research company NPD Group. That’s roughly 25% of the $2 billion basketball sneaker market, Cohen said. About 33% of all basketball shoes are purchased to play basketball, Cohen said. That leaves 67% of the sales from consumers going for the association with an endorser such as Nike’s LeBron James— or with the NBA itself, Cohen said. ‘The impact would be huge,’ he said. ‘Out of sight, out of mind. If the players are not on the court, and the kids aren’t thinking about them, they’re not going out and getting their shoes.’ Matt Powell of sporting goods industry analyst SportsOneSource thinks the retail fallout from a lockout is overblown. Basketball sneaker sales were not badly hurt by the 1998-99 lockout, he said. He cites a different impact. ‘Kids are still going to play basketball and they’re going to need shoes regardless whether the NBA plays or not,’ Powell said. ‘Where brands could get hurt is exposing consumers to new styles.’ Powell notes that Nike’s Jordan brand controls 70% of the business, and Michael Jordan hasn’t laced them up on an NBA court since the last lockout. The company hit hardest, Powell believes, would be Adidas, which is about halfway through an 11-year deal as official outfitter of the NBA. Powell estimates Adidas could lose up to half of its $250 million to $300 million in sales generated annually from licensed NBA merchandise.”

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  • PippenAin’tEasy

    what about the headband companies?

  • LA Huey

    I feel sorry for the lot of them

  • http://redoftoothandclaw.ca/ niQ

    I don’t think it’ll be that bad, they’re doing pretty well with the Jordan and Nike commercials. If they really want to make more sales they should give more scenes/time of the actual shoe they’re trying to sell. I mean, those commercials were nice but we saw more clips of random leagues than of the shoes itself.

  • don

    About 33% of all basketball shoes are purchased to play basketball?

    that’s like saying 2/3 of basketball shoes purchased don’t get to serve its purpose of ACTUALLY PLAYING BALL?

  • Chukaz

    @Don I own like 8 pairs of basketball shoes and I only use 1 to play ball

  • http://Www.fiba.com Darksaber

    Also responsible for bball sneaker losses? Ridiculously high prices for the kicks.
    Case in point, the ‘new’ Nike Air Shox Hyperballer. As a decade long fan of Shox was excited to try them out, until i saw the price tag: 160 Dollars. Highest price Nike ever demanded for a Shox as far as i can remember.
    The Shoe was released in late July, and per mid-September it was already discounted (40 bucks less!) on eastbay. Surprise, nobody wants to pay that much for a performance shoe.
    Late september, i ordered some gear online (one Hyperballer in the mix too) which got delivered last week.
    Imagine my frustration when i checked the current prices today; the show that cost so much in August is now available for 99 dollars, in all colourways and with available sizes. In 3 months, eastbay had to reduce the price by nearly 40 percent!
    Even Nike’s cash cow, the Hyperdunk ’11 which was affordable is now on sale.
    Good luck with the Bron 9 and Kobe VII (200 bucks special edition?!) price tags, swooshers.

  • MaxIsNative

    I’d rather wear Shaq’s brand.

  • AD

    there not payn the ppl right in the sweatshops anyway……