It has been recently reported that Nike’s income has taken a sharp plunge in the recent months, and analysts believe that it is due to high product costs. With the 2012 Summer Olympics on the horizon, Nike plans on releasing Nike+ technology equipped basketball and training shoes, which will give athletes information about their performance straight to their phone. Nike hopes that sales will rise considering that many of the top athletes in the world will be wearing their high-tech products under the watchful eyes of millions of people around the world. The question is, is Nike’s targeted market of consumers willing to shell out hundreds of dollars just so that they can track their progress through their phone?
As someone who exercises 5-6 days a week, I think it would be nice to be able to know on the spot how fast I ran or how high I jumped, but it really isn’t something that I would consider a necessity. With Nike Hyperdunk basketball shoes already costing upwards of $130 dollars, I don’t think many people will have the disposable income to be purchasing high tech shoes for an even higher price. It will be interesting to see how the product life cycle for Nike+ develops within the next few months. Right now, Nike is the only company who has a high tech shoe ready to go, so they will be the one that sets the market for this particular type of product. I know Adidas will be coming out with a similar product soon, so we’ll find out how their introduction stage compares to Nike’s, and then we’ll see how they compare in the growth stage as well. Maybe I’ll change my mind about Nike+ in the future but right now, I’m pretty content with wearing shoes that don’t have chips inside of them.