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The $25 number comes from Steve Bence, Nike's Program Director in Footwear Sourcing and Manufacturing. I would also take that number with a grain of salt, but a
by decimalenough 2y ago
The $25 number comes from Steve Bence, Nike's Program Director in Footwear Sourcing and Manufacturing. I would also take that number with a grain of salt, but another cited source, Sole Review, an independent sneaker review site, estimates that manufacturing a shoe that's $100 at retail shoe costs $22.
So those are the article's sources. What are yours?
I'm also curious about your claim about $8-12 shoes that are equivalent in quality, because while you can, indeed, buy very cheap shoes on Aliexpress etc, the quality or lack thereof is usually commensurate.
- Kon5ole 2y agoI can't believe Nike spends 25 dollars on the actual making of the shoes, it just doesn't add up. Nike sneakers regularly sell to consumers for ~25 dollars, in brick-and-mortar stores, in countries that have 20% VAT. Naturally Nike wants to claim their shoes are as valuable as possible, and they can perhaps somewhat truthfully claim 25 dollars by including the cost of R&D, sponsorships and marketing etc in the cost of making the shoes. Then they can spread the total cost of Nike operations creatively over models that sell 1 million units and others that sell only 50 000 units. If shoes cost 5 dollars to make but you feel you need to pay Serena and Tiger 20 bucks per shoe to sell them, suddenly they "cost" 25 to "make".
- decimalenough 2y agoThey're not saying the incremental cost of making a single shoe is $25. They're saying that, after everything is accounted for, it costs Nike approx $25 to get a $100 retail shoe onto a boat in China. And yes, Nike has cheaper shoes too, but per article, if it's retailing for $50, it probably costs $12 tops to make.