How New Balance Made A MAJOR Comeback

When you think about New Balance, what's the first thing that comes to mind? Not beauty, I’m sure. Unlike some other shoe brands like Nike and Balenciaga, New Balance isn't as aesthetically pleasing or fashionable, with most people referring to them as "Dad shoes". However, they have managed to become a billion-dollar company and are currently staging one of the biggest comebacks in the game of footwear. How did they achieve this?
Recognizing the need for improvement in the footwear industry, William J. Riley founded the New Balance Arch Support Company in 1906, aspiring to craft comfortable, healthy, and well-fitted shoes. The name "New Balance" emerged as Riley daydreamed, observing his yard's chickens. Inspired by their stable gait and weight distribution, particularly the point of concurrency formed by their three toes, Riley envisioned an exceptional weight-bearing design.
New Balance's products gained popularity among law enforcement, particularly policemen and firefighters, appreciating the support during demanding shifts. By 1927, New Balance supports hit the market at five dollars each, equivalent to almost 90 dollars in 2023. Despite the premium, this was beyond the budget for many, considering it could buy a new pair of shoes at a high market price. Consequently, New Balance products weren't stocked in retail stores due to low demand. Instead, travelling salesmen promoted them at conferences, events, and through in-person visits to people's homes.
In 1938, New Balance made a pivotal move by releasing their first tailor-made sneaker for a young Boston runner, diversifying into sports like baseball, tennis, and boxing. Surprisingly, it took until 1960 for New Balance to unveil its first general-market sneaker. Just four years prior, Eleanor and Paul Kidd had acquired the business, representing the next generation ready to guide it boldly in a natural direction. Eleanor, Arthur Hall's daughter, alongside her husband Paul, brought not only a familial passion for the business but also a vision for commercial expansion.
However, New Balance faced a retail challenge. The variety of widths meant that traditional shoe stores struggled to stock such an extensive range, limiting accessibility for consumers. Despite this, the Trackster became the preferred choice for track teams and colleges, showcasing New Balance's commitment to innovation in athletic footwear.
In the pursuit of standardization, New Balance shifted to releasing different models rather than the same model with various widths. Eleanor and Paul Hall remained committed to the principles set by William J. Riley half a century earlier. While the company remained small and highly specialized, the integration of insole technology into its shoes laid the foundation for a globally successful brand.
However, Davis wasn't interested in blending in with industry giants like Nike, Adidas, or Puma. The first major change was creating a more distinct brand identity. Up until then, the trademark "N" was designed by Terry Heckler.
In 1982, the 990 set a retail price record of $100, equivalent to 3 times the amount today. Despite the premium pricing, the brand remained dedicated to its sporting roots. Long before Michael Jordan's global stardom and the iconic Nike Air logo, Jordan wore New Balance shoes. In the era preceding Nike's dominance, New Balance was the favoured choice for athletes across America, including Michael Jordan.
The New Balance 574, introduced in 1988, remains one of their most iconic models, still in production today. The 5 Series, with its simple and clean form factor, has become the brand's most recognizable series. In the last decade, far from fading out of trend, New Balance experienced a resurgence. While New Balance was traditionally known for avoiding such partnerships, the evolving landscape prompted a shift. It transcended into fashion, worn by prominent celebrities like Timothee Chalamet, Hailey Bieber, and Jack Harlow.
The buzz around New Balance isn't limited to resale; the brand's impressive $5.3 billion in sales in 2022 marked a substantial 21% increase from the previous year. However, in comparison to industry giants like Nike and Adidas, New Balance remains a relatively smaller player in the footwear market.
Despite this, the brand's recent surge in popularity has positioned it for faster annual revenue growth compared to its larger competitors. New Balance's ability to balance accessibility and exclusivity has played a crucial role in its sustained success and increasing market share.
Holding a solid 10% share of the U.S. market, the company has expanded its operations in Europe and established specialty stores in Asia, such as the Tokyo Design Studio.
Do you think New Balance will surpass Nike and Adidas in the future? Let me know in the comments.
Also, make sure to like the video if you enjoyed it and do not forget to subscribe to the channel for more content.
#business #companies #newbalance

[@mrdinosaurproductions9507]

Very underrated channel. Good video!

[@MoneyChroniclesYT]

Thanks so much!

[@wg2141]

You are using Jim Davis (owner since 1972) photo as William J. Riley (founder 1906).

[@that_which_is_not]

I think of running shoes, they make fantastic daily and racing trainers

[@DutchNeX]

What model of shoes is the one in the video?

[@borbune2168]

How do you only have 24 followers

[@MoneyChroniclesYT]

New channel. Working to gain more!

[@fredkelly6953]

I have wide feet and the other brands don't accommodate for that. I'd love to wear Nike but I'm damned if I'll support a company that doesn't fit my needs. New Balance does so I won't buy anything else.

[@manny9025]

What shoes have you tried or do you recommend for wider toe box? Ive been wanting to try New Balance myself but there are some models that i still find narrow but i like the look of them. Like the 991

[@DutchNeX]

i love wide feets. show us

[@anthonyb1339]

Video is spot on as said the shift is slowly changing as they figured out to collab with more notable designers. Nike is the choice with our younger generation, hype, sheep mentality and resale mkt. equals a lot of money being made. New Balance though superior in quality over Nikes poorly crafted plastic and leather sneakers is not as sought after, it's about the money and as said NB has a rep as Dad shoes, which makes no sense cause the crew I work with, most were dads at 19...