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5 years ago, Nike and Adidas were at their peak. These legacy brands had evolved from low-margin apparel into high-margin footwear. Sneakers became assets with unprecedented appreciation and resale value. Brands earned record profits as stores were crowded, social media went wild over the latest drop, and pairs sold out within minutes. There was no rhyme or reason behind this craze. With so much money at stake, low interest rates, and insatiable demand, no one stopped to question why. That was, until people stopped buying.
Media dinosaurs and content farms have attempted to explain the fall of Nike and Adidas through age-old business tropes and boomer interviews for easy clicks. They push low-effort analysis that it’s because Jordans and Yeezys are unfashionable or that Nike simply made too many shoes. What these amateurs get wrong is that revenue is a lagging indicator - not a leading one.
The sneaker industry is a modern case study on not just how fast consumer markets can change, but also the importance of adaptation and expertise in business. If we truly want to understand the business of sneakers - we have to go into this world and see the hustle of the few who are left.
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0:00 Rise of Sneakers
2:58 Sponsor Break (Netsuite)
4:40 The Young Gun
23:13 The Grizzled King
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