New Balance puts its best foot forward

Summary

The video script delves into the history and evolution of New Balance sneakers, from their 1800s origins as quiet 'sneakers' to the modern brand associated with Steve Jobs and celebrities. It highlights the company's growth, with revenues jumping from $6.5 billion to a 203% increase year-over-year. New Balance's commitment to quality is underscored by its US-based factories and a recent partnership with Aime Leon Dore, which revitalized older models like the 550, selling 880,000 pairs in a minute. The brand aims to be the world's premier sneaker label, balancing domestic production with overseas manufacturing for its high-end, premium lines.

Takeaways

• 👟 The term 'sneaker' originated in the late 1800s, referring to shoes with rubber soles that allowed for quiet movement.
• 🏃‍♂️ New Balance is a brand known for its association with athletes and pop culture figures, and it's recognized for its distinctiveness in a competitive industry.
• 💬 The company's CEO, Joe Preston, is cautious about mentioning competitors, indicating a strong sense of brand identity and competition.
• 📈 New Balance has experienced significant growth, with a 203% increase in revenue from the previous year, reaching $6.5 billion.
• 👟 The brand has a historical connection to Steve Jobs and has expanded its appeal to include athletes and celebrities.
• 🏭 New Balance has a long history, dating back to 1906, and started by making shoe inserts inspired by the balanced gait of a chicken.
• 👟 The company's first sneaker was the 1961 Traer, designed for running, and the 990 model was a pioneer in breaking the $100 price point for running shoes.
• 🏠 New Balance maintains a strong manufacturing presence in the United States, with factories in Massachusetts, Maine, and a new one in New Hampshire, emphasizing local production and quality.
• 🔬 The brand invests in research and development, with labs and facilities dedicated to testing shoe performance and innovation.
• 🤝 New Balance has engaged in successful partnerships, such as with the fashion label Aimé Leon Dore, which helped relaunch the 550 model to great acclaim.
• 🌐 While most New Balance shoes are made overseas, the company is committed to producing high-end, premium retro running shoes in the USA.

Q & A

What is the origin of the word 'sneaker'?

The word 'sneaker' dates back to the late 1800s, and it refers to shoes with rubber soles that allowed people to move quietly.

How does the CEO of New Balance, Joe Preston, feel about mentioning competitors like Nike and Adidas?

Joe Preston feels a slight chill when he mentions competitors like Nike or Adidas, indicating a sense of rivalry or competition in the industry.

What is the significance of New Balance's revenue increase from the year before?

New Balance's revenue in the mentioned year was $6.5 billion, marking a 203% increase from the previous year, showing significant growth for the company.

What is the historical connection between New Balance and Steve Jobs?

New Balance was once associated with Steve Jobs, who was known to wear their shoes, which has contributed to the brand's image.

What was the first sneaker model released by New Balance and in what year?

New Balance's first sneaker was released in 1961 and was called the Traer, inspired by the way a chicken walks, which is never really off balance.

Why was the introduction of the 990 shoe significant for New Balance?

The 990 was significant because it was the first shoe that broke the $100 price barrier and was specifically designed for runners in the city.

How has New Balance contributed to the local economy in Lawrence, Massachusetts?

New Balance has contributed to the local economy in Lawrence by reviving the old industrial city's economy through its factory, which employs many local residents.

What is the role of New Balance's research lab in the shoe-making process?

New Balance's research lab is where they test their shoes for performance and durability, ensuring the quality and innovation of their products.

How did the partnership with Aime Leon Dore impact New Balance's 550 model?

The partnership with Aime Leon Dore led to the reissuing of the lesser-known 550 basketball shoe from 1989, which became extremely popular, selling 880,000 pairs in a very short time.

What is the current role of Teddy Santis at New Balance?

Teddy Santis, the founder of Aime Leon Dore, is now New Balance's creative director in charge of its Made in the USA line.

Does New Balance plan to manufacture all of its shoes in the United States?

New Balance plans to continue making their high-end premium retro running shoes in the United States, but most of their shoes are still made overseas.

Outlines

00:00

👟 Sneaker Culture and New Balance's Legacy

The script discusses the history of sneakers dating back to the late 1800s, with a focus on New Balance. Kelefa Sanneh highlights the brand's competitive nature in the industry, especially against giants like Nike and Adidas. New Balance's CEO, Joe Preston, is noted for his reluctance to mention competitors and the brand's commitment to quality and growth, evidenced by their revenue increase from the previous year. The brand's association with notable figures like Steve Jobs and its expansion into the athletic and pop culture scenes are also mentioned. New Balance's roots in Massachusetts since 1906 and its evolution from making shoe inserts to producing the first running shoe, the Traer, in 1961 are detailed. The company's growth is further illustrated by the 990 model's introduction in the 1980s, which was the first shoe to exceed $100 and was designed for urban runners. The script also touches on the company's manufacturing process and its pride in producing shoes in the US, despite most production occurring overseas.

Keywords

💡Sneaker

A sneaker is a type of casual footwear with a flexible sole, originally designed for sports or other athletic activities but now also widely used as casual wear. In the video, sneakers are the central theme, with a historical reference dating back to the late 1800s and their evolution into a fashion statement, as seen with New Balance's growth and association with athletes and pop stars.

💡New Balance

New Balance is a prominent sneaker and athletic shoe manufacturer, founded in 1906. The company is highlighted in the video for its competitive stance in the industry, its focus on quality and premium products, and its unique history. The video mentions New Balance's CEO, Joe Preston, and its association with figures like Steve Jobs and its growth in revenue.

💡Athletic Facility

An athletic facility is a space designed for sports and physical activities. The video discusses New Balance's recent opening of an athletic facility across from their headquarters, which includes a research lab for testing shoe performance. This facility exemplifies the company's commitment to innovation and the development of high-quality athletic shoes.

💡Revenue

Revenue refers to the income generated from the sale of goods or services. In the context of the video, it is used to compare the financial success of New Balance with that of its larger competitors, Nike and Adidas. The video notes New Balance's significant revenue growth, indicating its expanding market presence.

💡Productivity

Productivity in the video refers to the efficiency of manufacturing processes, specifically in the context of New Balance's shoe production. The script mentions the detailed steps in building a shoe, from cutting to stitching and assembly, highlighting the company's focus on craftsmanship and quality.

💡Economic Revival

Economic revival is the process of improving or regaining economic strength. The video discusses how New Balance's factory in Lawrence, Massachusetts, has helped revive the old industrial city's economy, creating a sense of pride for both the community and the company.

💡Made in the USA

This phrase indicates that a product is manufactured within the United States, often associated with quality and supporting domestic industries. The video emphasizes New Balance's commitment to making some of its high-end, premium shoes in the U.S., which is a point of pride and a marketing advantage.

💡Collaboration

Collaboration in the video refers to New Balance's partnership with the American fashion label Aimé Leon Dore. This partnership led to the reissue of a popular basketball shoe, the 550, which became a significant success for the brand, demonstrating the power of creative collaborations in the fashion industry.

💡Cultural Significance

Cultural significance denotes the importance of something within a culture or society. Sneakers, as discussed in the video, have transcended their functional use and have become culturally significant, reflecting personal style and identity. New Balance's sneakers are portrayed as not just footwear but as cultural symbols worn by athletes and pop stars.

💡Competition

Competition in the video is used to describe the rivalry and drive among sneaker brands to outperform each other in the market. It is highlighted through the competitive nature of the industry and New Balance's stance against giants like Nike and Adidas, aiming to be the best premium sneaker brand.

Highlights

The word 'sneaker' dates back to the late 1800s, originally designed for quiet movement.

New Balance is a brand that has grown significantly, with a 203% increase in revenue from the previous year.

New Balance's CEO, Joe Preston, discusses the competitive nature of the sneaker industry.

The brand is associated with both athletes and pop stars, aiming to cater to a wide range of consumers.

New Balance was founded in 1906 in Massachusetts, starting with shoe inserts based on a chicken's foot design for balance.

The company's first sneaker was a 1961 running shoe called the Traer, inspired by a chicken's running style.

In the 1980s, New Balance introduced the 990, the first shoe to break the $100 price point and designed for city runners.

New Balance has factories in Massachusetts, Maine, and a new one being built in New Hampshire, emphasizing local production.

The company's production in Lawrence, Massachusetts, has helped revive the local economy and created a sense of community pride.

New Balance's research lab focuses on rigorous testing of shoe materials and performance.

A partnership with American fashion label Aimé Leon Dore led to the revival of the 550 model, which became a massive success.

Teddy Santis, founder of Aimé Leon Dore, became New Balance's creative director, overseeing the 'Made in USA' line.

The brand's commitment to high-end, premium retro running shoes is a key part of its identity.

New Balance's history and growth are marked by innovation and a focus on quality, setting it apart in the competitive sneaker market.

The company's marketing strategy includes leveraging nostalgia and collaboration to appeal to a modern audience.

New Balance's dedication to making some of its shoes in the United States is part of its brand promise.

Transcripts

the word sneaker dates back to  the late 1800s rubber Souls made  

it possible to sneak quietly to your  destination well over a century later  

Kelefa Sanneh tells us there's a lot  of noise about sneakers one brand in

particular when you visit New Balance you will be  judged I can walk in a room and pretty much know  

what people are wearing very quickly and when you  talk to the company's CEO Joe Preston some things  

are better left unset I feel a slight chill Breeze  come over this whole area any time I even say Nike  

or Adidas and certainly when you look around  no one's wearing anything except new balance  

is it tribal is it competitive in that way I think  the industry is competitive and we're competitive  

you don't even like to say their names do you I  have I have said them Nike brings in more than  

$50 billion a year Adidas exceeds 20 billion new  balance is smaller but growing fast Revenue last  

year was $6.5 billion a 203% increase from the  year before a brand once associated with Steve  

Jobs is now linked to athletes and pop stars we  are trying to make the best product for athletes  

and then we're also making product that people  can wear to express their personality to wear  

on the weekends I love them how we doing today go  new balance is older than its larger competitors  

it was founded in 1906 in Massachusetts where  it's still based in those days it just made  

inserts for shoes is all based on a chicken's  foot a chicken's foot that's right yeah if you  

notice the way a chicken walks it's never really  off balance its first sneaker was a 1961 running  

shoe called the Traer run like a chicken run like  a chicken Chris Davis is Chief marketing officer  

I grew up wearing New Balance every single day I  consider New Balance to be more of like a brother  

or sister perhaps because Chris's dad Jim Davis  bought the 66-year-old company in 1972 and what  

is he buying at that point he's buying a running  shoe with six employees making 20 pairs of shoe a  

day by the 1980s running was a fitness craze and  New Balance introduced a shoe called the 990 it  

was the first shoe that broke the $100 barrier but  it was also the first shoe that was designed for  

runners specifically running in the city you have  a cutting Department you have a preit department  

you have a computer Stitch stitching and assembly  and it kind of goes around Ray Wentworth oversees  

production building a shoe piece by piece we  are we are 990s have been made here in Lawrence  

Massachusetts since 1982 the factory helped revive  the old industrial City's economy so many of the  

people who work at Lawrence are from Lawrence it's  a sense of Pride for the community of Lawrence but  

it's also a sense of Pride for New Balance New  Balance has a second Factory in Massachusetts  

three in Maine and a new one being built in New  Hampshire we want to be the best most premium  

sneaker brand in the world and the only way that  we can do that is by making shoes in the United  

States at least some of them most New Balance  shoes are made overseas this is where the labs are  

this is where the science is this where the magic  happens recently new Bal once opened an Athletic  

Facility across the street from their headquarters  in Boston at their research lab they don't test  

athletes just their shoes this is flex testing so  it's basically mimicking steps a lot of steps at a  

very rapid rate in 2019 Chris Davis also began a  partnership with the American fashion label Aime  

Leon Dore first creating versions of the 990 then  a year later reissuing a lesser known basketball  

shoe from 1989 the 550 blew up 550 absolutely  blew up at the height of the 550 we were selling  

880,000 pairs in a minute like the 550 not  only took the industry by storm but it took  

us by storm we knew it was going to be successful  but we didn't realize how successful it could be  

last year Teddy santis Aime Leon Dore's founder  signed on as new balance's creative director in  

charge of its made in the USA line I'm wearing  New Balance uh 650s right now made in China will  

these ever be made in the US we stick to  our high-end premium retro running shoes  

in the United States are you calling my sneakers  low-end those are definitely definitely premium