Nike, Nash 'Trash Talk' Amid Footwear Industry's Sales Gains

Nike and basketball player Steve Nash dug down in the dumps for their latest shoe: The Nike Trash Talk, which Nash debuted during the Phoenix Suns game against the Dallas Mavericks Thursday night. Nike claims it is the first performance basketball show made from manufacturing waste.

Modeled after the Nike Zoom BB II Low, Nash's current shoe, the upper portion of the Trash Talk is pieced together from leather and synthetic leather waste from the factory floor using zigzag stitching. Mid-soles are made from scrap-ground foam, and the outsoles are built from an environmentally preferred rubber that "reduces toxics and incorporates Nike Grind material from footwear outsole manufacturing waste."

Naturally, it is sold in a recycled cardboard box. An All-Star version will be available at the House of Hoops by Foot Locker in New York and New Orleans this week; the Phoenix Suns' version launches in April, also at the House of Hoops.

Such innovations are keeping consumers interested in shoes at a time when they're cutting back on other discretionary purchases. The NPD Group Inc., in its just-released report on the footwear market, says that 2007 sales totaled $44.4 billion, a 2% gain from the prior year.

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"Some may see this 2% as minor growth but considering it comes on the heels of 10% growth in 2005 and 5% in 2006, it's encouraging that the industry continues to find more business," NPD says in its release of the report. "This past year has had more challenges than most, yet the industry fared well overall. Not all fashion categories can say that."

While the sales figure includes both fashion and athletic footwear, NPD says fashion-focused footwear continues to drive the most growth. "Low performance athletic footwear, the category of athletic footwear designed to emphasize fashion and comfort, and skateboard shoes are posting the highest growth rates," it says, registering 11% and 34% growth rates, respectively. "The crossover application of street and skate continues to drive the youth trends in footwear, and that will likely continue for most of 2008," it predicts.

But there are no slam-dunks, even in the casual sector: Skechers USA, for example, just posted a small decline in sales for its fourth quarter: $302 million, compared with $304.5 million in the year-ago period.

And boots, notably Uggs, continued to be strong sellers. All-weather boot sales jumped 62% for the year, and leisure/low-performance boots gained 59%.

More consumers are buying their shoes online, NPD says, with brick-and-mortar sales flat, and online purchases registering double-digit growth. "Online has become an important destination for consumers, with free overnight shipping and free return shipping, plus all your favorite brands in one convenient place," the report says.

But as shoppers continue to tighten their belts, it predicts, the pressure will be on shoe manufacturers to inspire customers to splurge.

"Footwear companies will have to work very hard to drive impulse," NPD says. "They will have to find ways to get consumers away from thinking only about replacement of their worn-out footwear. Impulse most always outweighs budget constraints. Footwear has to be passionate again."

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