Friday, March 18, 2005

How high can they go?

For $250, a microchip-equipped sneaker offers customized cushioning adjustment

By Andrea K. Walker
Baltimore Sun Staff

Michael Jordan proved early on that people are willing to dish out big bucks for the right sneakers. Twenty years after their creation - and two years after Jordan retired from playing basketball - his Nike Air Jordans still sell for as much as $200.

Now, Adidas is about to take the athletic shoe to higher ground.

The German athletic apparel manufacturer plans to introduce in stores today a $250 running sneaker it calls the Smart Shoe.

The Adidas-1 is gaining attention as the first of its kind to use an embedded computer chip that adjusts the cushioning of the shoe based on a runner's weight, speed and running terrain.

The product might cause as much a stir over price as over its technology. It's one of the most expensive sneakers ever to hit the market.

"It's going to be head and shoulders the most expensive shoe out there," said Tim Taylor, a footwear associate at Dick's Sporting Goods in Columbia.

The $16 billion athletic shoe market has rapidly expanded as consumers buy sneakers to make a fashion statement as much as they do for athletic performance.

A new generation of basketball stars led by LeBron James, Kevin Garnett and Baltimore native Carmelo Anthony have replaced endorsement celebrities of the past.

Even old-style, canvas sneakers such as Converse Inc.'s Chuck Taylors have made a comeback. About 493 million pairs of athletic shoes were sold last year, up nearly 5 percent from 471 million pairs sold in 2003, according to NPD Group/NPD Fashionworld, a research firm in New York.

Although consumers have shown they are willing to pay a pretty penny for footwear, some question how big the market is for a shoe that costs as much as some car payments.

"I just think that a $250 price point is a price that is really out there," said Neil Schwartz, director of marketing for SportScan INFO, a Florida market research firm that collects data for the sporting goods industry. "I'm not sure the amount of money spent will equal the advantage of the technology in the shoe."

The average running shoe costs about $55 a pair, according to SportsScan data. Working in Adidas' favor is the growing demand for higher-priced running shoes. Sales of shoes that cost more than $75 grew 20 percent last year, and running shoes are the largest-selling category of athletic shoe.

"People are spending more on a sneaker than ever before," said Mike May, spokesman for the Florida-based Sporting Goods Manufacturing Association, a trade group. "They're realizing that technology-wise, you're getting more support, more longevity, more style, more comfort and more diversity of color than ever before."

"People pay $50,000 for automobiles," he said. "There's not a reason why they won't pay $250 for a sneaker."

Stephen Pierpoint, an Adidas project manager, said the new shoe took four years of development to bring to market. The price is justified by the value of the innovative technology, he said.

Demand has been high, he said, and Adidas has surpassed its goal for the number of shoes it wanted in stores on its launch date.

The shoe's sensor works by measuring the distance to a small magnet at the bottom of the shoe, taking 1,000 readings a second. A small microprocessor capable of making 5 million calculations per second processes the information. The shoe then adapts with a motor-driven cable system that spins at 6,000 rpm - faster than the blades of a helicopter. The motor then gradually adjusts the cushioning of the shoe.

"It's the most advanced sporting shoe on the market," Pierpoint said. "There is not another product that exists like this."

The company expects early buyers to be avid runners or shoppers who like to stay ahead of the trends. The company has released the shoe in selected stores around the country.

Baltimore-based Downtown Locker Room had hoped to get the shoe at one of its 42 stores but wasn't one of Adidas' selected sites.

"There's no question it would be great for us," said Todd Kirssin, divisional merchandise manager of footwear for the athletic apparel store, which owns stores from Maryland to North Carolina. "If we could get it, we would blow out of it."

Kirssin predicts the shoe will attract more than just serious runners.

"It will have a much broader appeal," Kirssin said. "This would be something for the techie kids. Plus, people like to have something that's so limited. Our customer likes to have things first."

The Columbia location of Dick's Sporting Goods has received 25 pairs and expects it to sell pretty well, but Taylor acknowledged that the price might too steep for some customers. Taylor is a runner, but he won't be buying the shoe.

"I think once the word gets around, people will buy it," Taylor said. "I'm not going to spend $250, but it's a great concept."

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