Burnout & Over Saturation, Does the Sneaker Industry Need to Slow Down?
We are almost halfway through 2023, and I’ve already had enough.
Recently I took a step back from posting and engaging with sneaker related content for a number of reasons, but mostly due to fatigue.
In recent years the sneaker industry has become ever constant with brands releasing multiple pairs on a weekly basis. This is no surprise in a world where AI can generate almost anything in a matter of seconds, purchases can be made from the click of a button and short form content is dominating the market,
We as the consumer demand instant gratification and it only makes sense the sneaker industry follows suit.
Image by The Hollywood Reporter
This constant barrage of releases has left some struggling to find the love for the industry they once had, myself included. I personally find it difficult to get excited for a release in today's market. There are a number of contributing factors to this, from brands lackluster quality control, early pairs saturating social media feeds months prior to release (something I do plan on discussing in further detail at a later date) to the constant slew of releases dumbing down the specialty of pairs and making it harder to pick something you truly like.
Now it’s no secret the brands we all know and love are profit driven businesses. I’m sure many of you have recently seen the movie “Air” which touched on Nike’s struggling finances at the time. Without these brands turning a profit we wouldn’t get the sneakers we love today.
I do however believe that the need for ever increasing returns from investors has driven the market to the state we see today.
Image by Forbes
As of Nike’s third quarter which ended on February 28th 2023 the brand had generated $12.4 Billion in revenue, which is up 14% on last year. For the last fiscal year which ended at the beginning of May 2023 New Balance had generated a total revenue of $5.3 Billion marking a 21% growth from the previous year and a record number for the brand. I decided to disregard Adidas in this comparison due to their ongoing issues with Kanye West and how reliant the brand was on the Yeezy label, as this has skewed the brand's perception and figures in recent months.
This ever dominating corporate mindset and the constant calendar of releases has led to oversaturation in the industry affecting almost all brands and models leaving few exceptions.
Recent examples of this can be seen in the form of the dunk, Jordan 1, 550 and the 2002r. All shoes which performed phenomenally on initial release, however over the course of time have failed to garner the same attention initially captured upon the silhouettes launch. Although brands are making record profits the pairs which were once instant sell outs now occupy the sale racks in stores. This dramatic 180 shows consumers disdain for the oversaturation of their favored models.
This has a negative impact on both consumers and the brands directly. Consumers grow tired of products at increasingly fast rates due to overflow of options and releases leading to new colourways and collaborations losing the luster they once had. The likes of Union, Travis Scott or Salehe Bembury collaborating on multiple pairs a year takes away from the desire to chase these limited releases as consumers know there will be another release in the not so distant future.
The brands themselves are not immune to the negative impacts of oversaturation. Although currently they are seeing record profits, brands are being left with excess stock on mass. This is nothing abnormal for brands of this size with Louis Vuitton famously burning excess stock from past seasons to maintain exclusivity. However in the sneaker industry unsold pairs will often be put on sale later diminishing not only the brand value, but the value of the product itself. If this carries on, we will see consumers not purchasing a product upon release with the intent of waiting for it to go on sale. This will negatively impact the brands bottom line and instead will have the opposite impact than initially intended.
Image by rematch.net
Although the above is rather doom and gloom, there is however a silver lining in all of this for us the consumer. The over-saturation of the market and decreased chance of popular models selling out has started to see the return of outlet and discount shopping, meaning It's no longer uncommon for buyers to wait expectantly for products to be discounted before purchasing.
I’m no corporate strategist. It's clear however to see from all angles that the current rinse and repeat cycle is not sustainable. Brands are continuously reaching into their archives and resurrecting models from yesteryear in an attempt to keep their momentum alive. From Air Ships to Gel-Lyte III remastered nothing seems to be safe.
I personally feel that if brands do not find a way to overcome the current situation that it will alienate the average consumer. Very few have unlimited cash to burn purchasing each new release they desire. With the diminishing value of the product on offer knowing there’s always another option on its way, it may entice consumers to save their money and purchase something truly special to them. Typically this will be a product outside of the manufacturer's influence, something they may have missed out on in the past which in turn gives the brand nothing.
In an ideal world, brands would release fewer pairs with greater quality, detail and storytelling allowing consumers to connect better with the product and bring back a sense of meaning.
