Athletic running or lifestyle sneakers with the characteristic N on the side reflect a century-long history of innovation and orthopedic support, which began in an Irishman’s backyard in Boston and now counts more than 6,500 employees worldwide.
Under the watch of Jim Davis, a second-generation Greek, New Balance today produces 70% of its products in its five facilities in Maine and Massachusetts, and the rest in Great Britain from where they are distributed to European markets.
A matter of balance
It owes its name to the desire of an Irish immigrant, William Riley, who in 1906 wanted to offer the customers of the New Balance Arch Support Company better balance in their walking and posture through arch support.
His idea came from observing his… chickens in his backyard at his home in Boston. Riley understood how they walked by achieving perfect balance on their three toed feet each – and this led him to inspire the famous three points of support in arch support products.
And that’s what he did. In 1927 he even hired Arthur Hall as a salesman, who traveled throughout the New England region promoting the products to workers who stood on their feet all day, such as policemen, firemen and factory workers – they weren’t the only people in need of something like that.
The athletes
It was Hall who took over the company in 1950 and three years later sold it to his daughter Eleanor and her husband Paul Kidd for $100,000.
And when athletes began to look beyond the already popular products and sneakers, they were the ones who in 1961 built the legendary Trackster in the basement of their home. The first New Balances shoe to gain fame was made in the basement of Eleanor and Pauls home and was called The Trackster.
It featured a wavy outsole and came in different widths, which differentiated it from the metal studded shoes that were common among track shoes at the time. The Trackster was a tremendous commercial success and cemented New Balance in the minds of athletes.
However, it wasn’t until 1972 that the company really became a major player in the world of athletic shoes. And that’s thanks to Jim Davis, who bought the then-small company and turned New Balance into a leading running shoe brand in just a few years.
Jim Davis
On the day of the 1972 Boston Marathon, second-generation Greek Jim Davis bought the company. Before joining the team, New Balance had only 6 full-time employees, who produced 20-30 shoes a day and sold their products mainly through mail order lists.
Davis had the vision to take the company to the next level while maintaining the same distinction and unique customer preferences for shoes that made New Balance so successful.
1976 was a pivotal year for the subsequent course of the brand, as it created its first shoe, the 320 model, with the now iconic “N” logo on the side.
It is the same year that Runners World magazine named this same model as the New Balance 305 as the best running shoes, at the time when the trend of running and exercise started to take off and become fashionable.
Status symbol
Once New Balance established itself in the sports landscape, it flooded the market with new models of sneakers – all numbered so that they were easily recognizable by everyone.
The surprise came in 1982 when the 990 was released with a foam midsole and suede upper, which became the first sneaker to reach the then legendary $100 (today’s price is $278). It went down in sports history as the famous “dad shoe” as it was destined to become the favorite of American dads.
Six years later the 574 was released, with which New Balance introduced a little more color and attention to aesthetics. These two models, along with countless others released during the 80s and 90s, are still largely popular to this day, despite being reworked and relaunched every year.
Despite having to compete with giants like adidas and Nike, the brand had a significant presence in rap and hip-hop culture, and was inextricably linked to tech mogul Steve Jobs who wore it all the time and everywhere.
The retro trick
New Balance capitalized on the nostalgia trend. The retailer sells several retro shoe styles, such as the white 550 shoes that look a lot like older versions of New Balances, or the brand’s gray 990 shoes that have remained largely unchanged for years. This trend also spills over into the brand’s collaborations. For example, New Balance partnered with athlete Francisco Lindor last year for a limited-edition line of vintage shoes.
As shown by InsightStore data, a significant 66% of US adults who say that nostalgia influences their purchases “a lot” are favorable to New Balance shoes. Another 50% who are “somewhat” influenced by nostalgia are New Balance fans – suggesting that nostalgic fashion is a worthwhile trend for New Balance.
On the contrary, 25% of those who are “very” influenced by nostalgia are fans of Nike shoes – the brand’s main competitor – that is, almost a third compared to New Balance.
When the numbers speak
In 2022, New Balance reported revenue of more than $5 billion, up 21% from the previous year – trailing Puma, which reported revenue of more than $8 billion.
New Balance’s significant growth has largely come from expanding product lines, while brand partnerships and athlete sponsorships have increased. And all this within the framework that Joe Preston put in place, to double its size and reach 10 billion dollars in revenue in the next few years.
According to CivicScience, 42% of US adults currently have a favorable opinion of New Balance shoes. Compared to other major sneaker brands over the past year, New Balance has been consistently ahead of Nike since March 2023 – meaning it is the most loved shoe brand among US adults as of the end of the first quarter . This also aligns with previous data from CivicScience showing that New Balance was the top shoe brand that consumers planned to purchase this past spring and summer season.
Gen Z’s bet
Favorability among older Gen Z-ers is also on the rise, rising from 34% in September 2022 to 52% in September 2023.
Men also reported the highest interest in New Balance since September 2022. A majority of men 18+ (52%) say they are favorable toward the shoe brand, up eight percentage points from last year. Conversely, women reported a decline in interest, from 45% in 2022 to 42% today.
The development
In 2001, New Balance bought sneaker company PF Flyers only to relaunch it two years later. In February 2004, it bought Warren which was renamed Warrior Sports, making its entry into the global soccer market.
In 2015, New Balance’s parent company, together with Berkshire Partners, bought the Rockport footwear company from the Adidas group and combined it with Drydock Footwear under the name The Rockport Group, which also included the brands Aravon, Cobb Hill, Dunham and Rockport.
The company to this day, chaired by now-billionaire Jim Davis and with Joe Preston as CEO, continues to produce 70% of its footwear in the US, with the rest in-house.
Source: ot.gr
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