I lead a discussion on the release of the new Stephon Marbury sneakers and there effects on the sneaker market. These new sneaker are sold for ten to fifteen dollars without tax. The questions I wanted to answer during the discussion were: will they be successful? Will they lower the demand for more expensive products from major companies such as Nike? Can a company make a good profit off the selling of sneakers at a very low price?
After researching the topic I found that the cheap sneakers were in fact very successful within the first month of there release. However, I predict that like any other sneaker the demand will fizzle, maybe even more so for these sneakers because the popularity was due mainly to the price. This sneaker will not have an effect on bigger companies such as Nike, this is because consumers constantly worry about quality and most are fine with buying expensive shoes as long as good quality is ensured. Company profit will be small and there fore it will not match that of a regular priced shoe simply because low pricing limits marketability and makes it a lot harder for the consumer to obtain them due to the fact that the aren’t available in all of the major distributor stores such as Modells.