By ANDREA K. WALKER
Baltimore Sun
3/28/2005
The adidas-1 "Smart Shoe" is gaining attention as the first of its kind to use an embedded computer chip that adjusts the cushioning of the shoe based on a runner's weight, speed and running terrain.
Michael Jordan proved early on that people are willing to dish out big bucks for the right sneakers. Twenty years after its creation - and two years after Jordan retired from playing basketball - his
Nike Air Jordans still sell for as much as $200.
Now, adidas is about to take the athletic shoe to higher ground.
The German athletic apparel manufacturer is introducing a $250 running sneaker it calls the "Smart Shoe."
The adidas-1 is gaining attention as the first of its kind to use an embedded computer chip that adjusts the cushioning of the shoe based on a runner's weight, speed and running terrain.
The product may cause as much a stir over price as its technology. It's one of the most expensive sneakers ever to hit the market.
"It's going to be head and shoulders the most-expensive shoe out there," said Tim Taylor, a footwear associate at Dick's Sporting Goods in Columbia, Md.
The $16 billion athletic shoe market has rapidly expanded as consumers buy sneakers as much to make a fashion statement as they do for athletic performance. A new generation of basketball stars led by LeBron James, Kevin Garnett and Carmelo Anthony have replaced endorsement celebrities of the past. Even old-style, canvas sneakers like Converse Inc.'s Chuck Taylors have made a comeback. About 493 million pairs of athletic shoes were sold last year, up nearly 5 percent from 471 million pairs sold in 2003, according to NPD Group/NPD Fashionworld, a research firm in New York.
But even while consumers have shown they're willing to pay a pretty penny for footwear, some question how big the market is for a shoe that costs as much as some car payments.
"I just think that a $250 price point is a price that is really out there," said Neil Schwartz, director of marketing for SportScan INFO, a Florida market research firm that collects data for the sporting goods industry. "I'm not sure the amount of money spent will equal the advantage of the technology in the shoe."
The average running shoe costs about $55 a pair, according to SportsScan data. Working in adidas' favor is the growing demand for higher-cost running shoes. Sales of shoes that cost more than $75 grew 20 percent last year, and running shoes are the largest-selling category of athletic shoe.
"People are spending more on a sneaker than ever before," said Mike May, spokesman for the Florida-based Sporting Goods Manufacturing Association, a trade group. "They're realizing that technology-wise, you're getting more support, more longevity, more style, more comfort and more diversity of color than ever before."
"People pay $50,000 for automobiles," he said. "There's not a reason why they won't pay $250 for a sneaker."
Stephen Pierpoint, an adidas project manager, said the new shoe took four years of development to bring to market. The price is worth the value of the innovative technology, he said. Demand has been high and adidas has already surpassed its goal for the number of shoes it wanted in stores on its launch date, Pierpoint said.
The shoe's sensor works by measuring the distance to a small magnet at the bottom of the shoe, taking 1,000 readings a second. A small microprocessor capable of making 5 million calculations per second process the information. The shoe then adapts with a motor-driven cable system that spins at 6,000 rpm, faster than the blades of a helicopter. The motor then gradually adjusts the cushioning of the shoe.
"It's the most advanced sporting shoe on the market," Pierpoint said. "There is not another product that exists like this."
The company expects early buyers to be avid runners or shoppers who like to stay ahead of the trends. The company will release the shoe in selected stores around the country.
The Columbia, Md., location of Dick's Sporting Goods has received 25 pairs of the new shoe and expect it to sell pretty well, but associate Taylor acknowledged that the price may too steep for some customers. Taylor is a runner but won't be buying the shoe.
"I think once the word gets around, people will buy it," Taylor said. "I'm not going to spend $250, but it's a great concept."
Baltimore Sun
3/28/2005
The adidas-1 "Smart Shoe" is gaining attention as the first of its kind to use an embedded computer chip that adjusts the cushioning of the shoe based on a runner's weight, speed and running terrain.
Michael Jordan proved early on that people are willing to dish out big bucks for the right sneakers. Twenty years after its creation - and two years after Jordan retired from playing basketball - his
Nike Air Jordans still sell for as much as $200.
Now, adidas is about to take the athletic shoe to higher ground.
The German athletic apparel manufacturer is introducing a $250 running sneaker it calls the "Smart Shoe."
The adidas-1 is gaining attention as the first of its kind to use an embedded computer chip that adjusts the cushioning of the shoe based on a runner's weight, speed and running terrain.
The product may cause as much a stir over price as its technology. It's one of the most expensive sneakers ever to hit the market.
"It's going to be head and shoulders the most-expensive shoe out there," said Tim Taylor, a footwear associate at Dick's Sporting Goods in Columbia, Md.
The $16 billion athletic shoe market has rapidly expanded as consumers buy sneakers as much to make a fashion statement as they do for athletic performance. A new generation of basketball stars led by LeBron James, Kevin Garnett and Carmelo Anthony have replaced endorsement celebrities of the past. Even old-style, canvas sneakers like Converse Inc.'s Chuck Taylors have made a comeback. About 493 million pairs of athletic shoes were sold last year, up nearly 5 percent from 471 million pairs sold in 2003, according to NPD Group/NPD Fashionworld, a research firm in New York.
But even while consumers have shown they're willing to pay a pretty penny for footwear, some question how big the market is for a shoe that costs as much as some car payments.
"I just think that a $250 price point is a price that is really out there," said Neil Schwartz, director of marketing for SportScan INFO, a Florida market research firm that collects data for the sporting goods industry. "I'm not sure the amount of money spent will equal the advantage of the technology in the shoe."
The average running shoe costs about $55 a pair, according to SportsScan data. Working in adidas' favor is the growing demand for higher-cost running shoes. Sales of shoes that cost more than $75 grew 20 percent last year, and running shoes are the largest-selling category of athletic shoe.
"People are spending more on a sneaker than ever before," said Mike May, spokesman for the Florida-based Sporting Goods Manufacturing Association, a trade group. "They're realizing that technology-wise, you're getting more support, more longevity, more style, more comfort and more diversity of color than ever before."
"People pay $50,000 for automobiles," he said. "There's not a reason why they won't pay $250 for a sneaker."
Stephen Pierpoint, an adidas project manager, said the new shoe took four years of development to bring to market. The price is worth the value of the innovative technology, he said. Demand has been high and adidas has already surpassed its goal for the number of shoes it wanted in stores on its launch date, Pierpoint said.
The shoe's sensor works by measuring the distance to a small magnet at the bottom of the shoe, taking 1,000 readings a second. A small microprocessor capable of making 5 million calculations per second process the information. The shoe then adapts with a motor-driven cable system that spins at 6,000 rpm, faster than the blades of a helicopter. The motor then gradually adjusts the cushioning of the shoe.
"It's the most advanced sporting shoe on the market," Pierpoint said. "There is not another product that exists like this."
The company expects early buyers to be avid runners or shoppers who like to stay ahead of the trends. The company will release the shoe in selected stores around the country.
The Columbia, Md., location of Dick's Sporting Goods has received 25 pairs of the new shoe and expect it to sell pretty well, but associate Taylor acknowledged that the price may too steep for some customers. Taylor is a runner but won't be buying the shoe.
"I think once the word gets around, people will buy it," Taylor said. "I'm not going to spend $250, but it's a great concept."