How New Balance Attacked Nike

Summary

This video explores the fascinating rise of New Balance from humble beginnings to becoming a top sneaker brand. Initially known for comfort and function, New Balance avoided flashy endorsements and focused on quality. While Nike and Adidas dominated with iconic athletes, New Balance cultivated a loyal following with its timeless, comfortable shoes. Over time, they shifted focus to cultural relevance and strategic athlete partnerships, including stars like Kawhi Leonard. Today, New Balance is growing rapidly, embracing both fashion and sports with calculated risks, innovative designs, and authentic collaborations, positioning itself as a formidable competitor in the sneaker world.

Takeaways

• 😀 New Balance's rise to prominence began with a unique design inspired by chickens, leading to a focus on arch support and comfort.
• 😀 Michael Jordan's iconic Jumpman logo was created while he was wearing New Balance, not Nike. He later signed with Nike, creating a legacy.
• 😀 New Balance's focus on functionality over fashion led to a reputation for comfort but limited popularity among sneakerheads during the '80s and '90s.
• 😀 Steve Jobs, known for his simple style and innovation, made New Balance his go-to sneaker, which helped solidify its association with functional design.
• 😀 In 2017, Balenciaga's oversized sneaker trend helped reintroduce chunky shoes, a trend that New Balance had been making for decades.
• 😀 New Balance thrived with Gen Z, who embraced vintage '90s aesthetics, comfort, and more accessible alternatives to high-priced hype sneakers.
• 😀 New Balance used a 50/30/20 marketing strategy, focusing on proven tactics, calculated risks, and experimental projects to build cultural relevance.
• 😀 Collaborations, such as with Aimé Leon Dore, played a key role in transforming New Balance into a lifestyle brand with broader appeal.
• 😀 New Balance's entry into the sports world started with the signing of Kawhi Leonard in 2019, and they expanded by partnering with athletes like Shohei Ohtani and Coco Gauff.
• 😀 In football, New Balance shifted from team sponsorships to focusing on individual athletes like Bukayo Saka, designing products based on their specific playing styles.
• 😀 New Balance's authentic approach to marketing and innovation has resulted in a dramatic rise in revenue, positioning the brand as a serious competitor to Nike and Adidas.

Q & A

Why did New Balance start with a focus on arch supports instead of sneakers?

New Balance's founder, William J. Riley, was inspired by the natural balance of chickens' feet. He created an arch support system to improve comfort, which led to the company's initial focus on making custom arch supports rather than sneakers.

How did New Balance differentiate itself from competitors like Nike and Adidas in the early years?

While Nike and Adidas focused on mass marketing, flashy ads, and athlete endorsements, New Balance stayed small and concentrated on creating high-quality, functional shoes. They built a reputation for well-made products over flashy marketing.

What was the significance of New Balance’s Trackster shoe released in 1960?

The Trackster was the first running shoe available in different widths, making it more accessible for a variety of foot shapes. This innovation set New Balance apart in the market and catered specifically to runners.

Why did New Balance develop a reputation for being a 'dad shoe' in the 1980s and 1990s?

While Nike and Adidas were targeting younger, trend-conscious athletes, New Balance became known for its comfortable, practical shoes. As a result, it gained popularity with dads who prioritized comfort over style, earning the 'dad shoe' label.

How did Steve Jobs contribute to the perception of New Balance shoes?

Steve Jobs, known for his innovation and simplicity, wore New Balance shoes consistently, especially the 992 model. His association with the brand helped elevate its image, making it a symbol of functionality and simplicity rather than fashion.

What trend shift in 2017 contributed to New Balance’s resurgence in fashion?

In 2017, Balenciaga released the oversized, chunky Triple S sneaker, marking a shift in sneaker culture toward 'ugly-cool' aesthetics. New Balance, already making similar styles with models like the 990 and 574, benefitted from this trend, as they were seen as vintage, stylish, and comfortable alternatives.

How did New Balance’s marketing strategy change under Chris Davis’ leadership?

Chris Davis shifted the focus from short-term, direct-response advertising to a brand-first strategy. He introduced a 50/30/20 formula, investing in proven tactics, calculated risks, and experimental projects to build long-term cultural relevance.

What role did collaborations play in New Balance’s comeback?

Collaborations, particularly with brands like Aimé Leon Dore, helped New Balance align with current fashion trends without following the crowd. These partnerships reinforced their image as a brand with timeless appeal and authenticity, contributing to a significant revenue increase.

Why did New Balance choose to target specific athletes instead of signing many, like Nike or Adidas?

New Balance adopted an 'inch wide, mile deep' strategy, selectively partnering with athletes who embodied their brand's values. They chose players who were not only high-performing but also represented what was next, offering authenticity and depth over sheer visibility.

How did New Balance approach its entry into football, and who are some key athletes they've signed?

New Balance initially struggled in football but later focused on signing individual athletes such as Bukayo Saka, Endrick, and Timothy Weah. They differentiated themselves by designing products like the Speed Control Stud using in-game data from these athletes, which enhanced their performance on the field.