Why Nike Air Jordans Are So Expensive | So Expensive
Business Insider2019-06-22
style#sneakerheads#sports apparel#Business News#so expensive#UK#sports insider#jordans#fashion#Business Insider#michael jordan#Video#air jordans#basketball#Original#sneakers#basketball shoes
4M views|5 years ago
💫 Short Summary
The video explores the evolution of the Air Jordan brand, from its early success with the Air Jordan 1 to potential oversaturation in the market and its comeback strategy. It highlights the brand's ability to connect with consumers, the role of innovation and marketing, and the cultural significance of Air Jordans.
✨ Highlights
📊 Transcript
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The resale value of the limited release Jordan 1 Retro Fragment can reach up to $2,000, while the Yeezy Boost 350 V2 Core Black Red resells for $900.
00:29Both shoes were sold in limited releases.
The value of the Jordan 1 Retro Fragment is attributed to the cost of production, the use of high-quality materials, and the brand's strategy.
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The Air Jordan 1 violated the NBA's uniform policy with its black upper, resulting in a $5,000 fine per game, but this became a unique marketing opportunity for Nike.
01:22Nike signed an unprecedented deal with MJ before the Air Jordan 1 was introduced.
MJ's success as a rookie wearing the Air Jordan 1 had a significant impact on Nike's revenue.
The Air Jordan 2 was not as successful due to Jordan's season-ending injury and his rumored unhappiness with Nike.
The Air Jordan 3, designed by Tinker Hatfield, became a critical milestone for Jordan and Nike, featuring innovative design elements and technology.
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The Air Jordan 3's design, including the first-ever mid-cut, elephant print overlays, and the Jumpman logo, contributed to its cultural importance and success.
03:00The Air Jordan 3 was a statement shoe that allowed people to make a statement by wearing a basketball shoe off the court.
Nike's marketing team connected Jordan with Spike Lee for iconic commercials.
The Air Jordan 3 was a crucial crossroads for Jordan and Nike.
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Air Jordans became a status symbol and a cultural phenomenon, but the brand priced out kids from low-income families who wanted them the most.
04:11Air Jordans were marketed as a luxury product to match MJ's talent and style.
Violence erupted around Air Jordans in the 90s, with two teens killed for their sneakers.
Tinker Hatfield continued to design Jordan's signature sneakers for the next 12 years, solidifying the brand's position.
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Jordan oversaturated the market with 30 different retros in a short period, leading to 'Jordan fatigue' and a doubling of Adidas's market share.
05:11Retro prices for Jordans jumped, with some reaching $400.
Nike CEO Mark Parker implemented an 'edit and amplify' strategy to streamline the sneaker ideas and catch up with the speed of the market.
Jordan brand ramped up offerings for female customers and collaborated with artists like Travis Scott and Virgil Abloh to connect with a new generation.
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Nike's R&D cut down from 350 sneaker ideas to 50, helping the company be more disciplined and catch up with the speed of the sneaker market.
06:11Jordan's comeback in 2018 was attributed to ramped up offerings for female customers and successful retro releases.
Travis Scott, Virgil Ablo, and other artists offered their takes on historic Jordan designs, furthering the brand's appeal.
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The Air Jordan 1 is more coveted than ever, demonstrating the brand's success in balancing nostalgia and innovation.
07:01The Air Jordan 1 represents the beginning of Jordan's career and continues to evolve as it ventures into the women's and unisex market.
The shoe sparked sneaker culture and created a frenzy and connection to shoes for many people.
💫 FAQs about This YouTube Video
1. Why did the Jordan 1 become so much more expensive than the Yeezy Boost 350 V2 Core Black Red, despite both being sold in limited releases?
The Jordan 1's higher resale value is attributed to the value of the Jordan brand, where it is made, the quality of materials, and the basketball shoes tending to use more material than running shoes. Additionally, the original price of Jordan's is higher than the average basketball sneaker, reflecting the brand's ability to charge more.
2. How did Nike's unusual decision to launch the Air Jordan 1 contribute to its success?
Nike's decision to launch the Air Jordan 1 with a black upper, which violated the NBA's uniform policy, resulted in a unique marketing opportunity. Michael Jordan's success as a rookie playing every game in his band's namesake sneaker showcased his rebelliousness, and the shoe became a symbol that shook up sneaker culture, catapulting sneakers to where they are today.
3. What were the key factors that contributed to the success of the Air Jordan 1 and the Jordan brand?
The Air Jordan 1's success can be attributed to several key factors, including Nike's revolutionary design and marketing strategies, Michael Jordan's impact as a rookie, the shoe's cultural significance, and its role in bringing sports apparel into the mainstream. The Jordan brand's ability to position its sneakers as a luxury product further enhanced its appeal and contributed to its long-term success.
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