After hearing news of the shoe on NPR this morning, it would have been silly to exclude it as a current event in my econ classes today. Students were learning about Keynes' theories on business investment. Back during the Great Depression era, the father of macroeconomics felt that fickle consumers were just that due to our "animal spirits." Businesses never know exactly what products will be profitable and what won't because of our dynamic tastes and preferences! So investment for companies - and people - always involves some measure of risk.
Well Adidas took a risk alright. But how could a firm as successful as Adidas have missed the mark so badly?
One argument is that the shackles are representative of imprisonment, and other notoriety from inmates (and slaves) have become fashionable, right? Like braids, over sized pants, chains, brands and tattoos. Granted, not all listed are simply fads; in other cultures, braids and body art can be a sign of position or rank. It is true however that in our urbanized milieu, sagging jeans, "over gold" and brands have become positives instead of negatives.
Never heard of "over gold?" Play the video below for a 1 minute introduction. It's endemic.
Another argument is that the consumerist American culture likes high-priced goods, no matter how ignorant or hurtful or controversial it may be. One student remarked that Adidas usually sells its shoes for a fraction of the price of the JS Roundhouse (which would have sold for about $150.00). So he would have bought them just to have a limited edition (scarce) one-of-a-kind shoe.
Ultimately, Adidas decided to drop the shoe from its fall line because of negative backlash in the blogosphere; not because a prudent Adidas executive thought better of it. Why? Negative PR leads to losing market share to Nike. The guest on NPR said that while Adidas lost out on the investment, it was a small price to pay to attract more consumers.
It's all about the Benjamins, baby.
Not to mention that best argument of all: why would I want athletic shoes equipped with shackles?? To keep me from jumping and running? That's just dumb.
Your thoughts are welcomed. Prosperity!
@RogueEconomista
Love your position on it! I can only imagine a basketball player running down the court with those on, and looking ridiculous.
ReplyDeleteI definitely don't think Adidas thought this one all the way through! Thanks for the feedback!
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