Questions about shoes and store openings

[russellh]

I wasnt really sure how to phrase the subject title, but anyway... I already searched the site looking for information on how to get accounts for shoes (i.e. nike, new balance, etc...) and some clothing but really couldnt come up with a solid answer.

I am in a position to open a store, but really have no buying experience (worked retail for 2 years) this is just a thought for the topic, but here are the questions...

Why is it so hard to get a nike account? I mean, I hear people say they wait and wait to get a response, and others say they just put references on thier application.

As for other shoe brands, how hard would it be to get an account for New Balance or Adidas?

I guess I just hear so many leads about people getting accounts. I mean, if I where to open, I just like to carry the dunks, air max, or sb classics.

Really, any help would be appriciated, I would just like info about accounts and how to obtain them. Thanks

[minya]

Quote: Why is it so hard to get a nike account? I mean, I hear people say they wait and wait to get a response, and others say they just put references on thier application.

Exclusivity = more hype = more value.

Nike knows that the harder their shoes are to get, the higher the price they can charge for them. Thus, getting a Nike Quickstrike shoe account is difficult.

Not to mention brand image. The more "cool" and "elite" and "exclusive" the stores at which certain Nike shoes are sold, the more cool/elite/exclusive those shoes become. Do you think Tiffany dunks would sell for $300, and be so "cool" if they were released at Foot Lockers across the country? No.

Edited by minya on Jan 15, 2006 at 09:25 PM

[russellh]

Thats understandable, I mean, I searched niketalk last night for "nike accounts". I found two leads that seemed interesting. (1) The person was still waiting after 8 months to get an account, and he/she put down some referances and still nothing. The other one (2) the person who owned the store has a "tier one" account I guess and must always buy a certain dollar amount each month.

But then another question I thought of, If all these stores in New York are carrying some sort of Nike account, and each store is say in a 15-20 mile radius, how could Nike give all those stores accounts?

I checked out Nike Biz and only could come across the phone number to call and set up an account, but first I need to have a store already established (which I dont).

Oh, one last thing, if the store has to be "cool" or "exclusive" how can Nike determine that? Or does it depend on how much money that store is devoting to Nike?

Sorry about all these questions, Im sure that this post doesnt really belong here, but everyone gets info and Nike, clothing, etc... so I thought I'd try.

[minya]

Quote: But then another question I thought of, If all these stores in New York are carrying some sort of Nike account, and each store is say in a 15-20 mile radius, how could Nike give all those stores accounts?

Well, there's many different levels of Nike accounts, so Foot Locker will have a certain account, with certain shoes available to it, whereas Recon/Nort will have another, with much more limited shoes available to it. (Recon/Nort in NYC and SF have "Tier Zero" accounts; I believe there are five stores in the USA with these accounts: HUF, Nort SF & Nort NYC, Undefeated, and Nom de Guerre.)

Quote: Oh, one last thing, if the store has to be "cool" or "exclusive" how can Nike determine that?

It's pretty easy: which is a cooler store, Athlete's Foot or HUF? "Coolness quotient" is a function of several things: atmosphere/space, other brands sold at the store, history, and (probably most important of all) connections -- who you know.

[russellh]

Thank you for the advice, with that, there is my next problem... connections. I am sure I would have a harder time getting a Nike account due to the fact that have nobody connected with the footwear industry so to say.

I also know what you mean about accounts for Foot Locker or Champs compared to a store such as HUF or Nort (now that I think about it).

So let me fill you in on my situation, I am from Allentown, Pa (Lehigh Valley) and the store would open in the Allentwon area. To me (again just my thought) it seems like a great market to be involved in. So my last question, should I just go for it? Or do some research and ask other shops about there retail experience overall? (Which I think I will do anyhow).

[UndaCover]

I was looking for info on opening a shop and came across this post. I am also trying to open a store in PA. I live in Philly and there arent any real boutiques here now that Ubiq changed. I also have no connections to footwear...but I have some connections to some store owners.

email me, maybe we can exchange some ideas on how to go about doing it.

or im me at "Sobdiddy"

[nanyc]

has nothing to do with the topic... but yea unda what the hell happened to ubiq??? i used to take trips down to philly just to goto ubiq and eat cheesesteaks... but last time i went... ubiq was like fully stocked with marc jacobs for women, little to no streetwear, and 100 dolla gr fcs, and no more madfoot? not to mention the workers there looked like idiots with their walkie talkies in addition to being clueless on everything they were selling in the store. guess i'll only be going for cheesesteaks now. (sorry just venting)

[russellh]

undacover... just emailed you... if you didnt get it post on here and ill get back to it... As for UBIQ Ive heard the same issues, that the store has changed its "style" but I havent been there for a while and from looking at the updates at the website, it seems they still get in good things. So Im not really sure, hopefully someone can fill me in.

[giantreptile]

screw nike. do something different. carry brands that are hard to find and are quality, like ludwig reiter (austrian) and walsh (uk).

[LA Guy]

Quote:

screw nike. do something different. carry brands that are hard to find and are quality, like ludwig reiter (austrian) and walsh (uk).

--- Original message by giantreptile on Feb 23, 2006 08:56 AM

Easy to say, hard to do. I really like Walsh and sort of like Ludwig Reiter sport, but the import taxes kill you, and the shoes are pretty expensive to begin with. Also, accounts like Nike are needed to pay the bills. If you want cool, more unique stuff, I would go with something like Double Identity and maybe go for a good Reebok (great new stuff after some mediocre years) and/or Vans account to pay the bills if you want to eschew Nike. On the other hand, if you want to get, a tier 1 Nike account, probably the best way is to hook up with someone you know that has one. Do you have a friend with a good Nike account? Get them to put in a word for you.

Oh, and decent Adidas and New Balance accounts are easier to come by. Nike is sort of crazy that way. Gotta hand it to them though. Their marketing team is aces.

Edited by LA Guy on Feb 23, 2006 at 09:36 AM

[emrinderForgotHisPassword]

15-20 mile radius? try a few blocks, classic kicks, dave's quality meats, supreme clientele are all walking distance from each other

love minya

[Guest sauce1]

because Nike doesnt need you, you need them.

.

someone took my niketalk name here.

[englandmj7]

As an ex-Nike corporate employee I can tell you that firstly, you WILL NOT get an SB account unless you are opening a store in an area completely devoid of any other stores carrying one, you are or have been a professional skater, or are a true skate shop....none of which you seem to have. As far as regular Nikes go, basically you need to know someone at Nike, and previous experience at a store stocking Nike can help as well......if you have the time and want to learn, get a job at an Undftd/Alife/etc. and get to know their Nike rep, or just go to the store and talk to the owner about it. If you are in LA, all the guys at UNDFTD (Alex, James, Eddie) are really cool and will be wiling to set up a time to talk to you. In the event you do get an account, you have to make a certain quota with their "shittier selling" shoes (i.e. not dunks, AF1s, etc.) before they might let you in on more exclusives, etc.........but seriously, don't be afraid to call the corporate switchboard in Beaverton; Nike employees are in my opinion very helpful compared to the stereotypical billion dollar company, I am sure they can get you in touch with someone who can answer a few questions.

Quote: But then another question I thought of, If all these stores in New York are carrying some sort of Nike account, and each store is say in a 15-20 mile radius, how could Nike give all those stores accounts?

I checked out Nike Biz and only could come across the phone number to call and set up an account, but first I need to have a store already established (which I dont).

The reason the stores are so close is because before 2003 Nike was giving out accounts like crazy. Their actual policy right now (according to my buddy who heads Entertainment Marketing) is that they are only giving out 1-2 a year maximum (doesn't mean there aren't exceptions for ex-employees/industry people). And yes, I forgot to mention, in your case, you will need to have a fully-operational store before they will give you an account. Sadly that is how it works. Since they don't know you, they are not going to trust your management skills at the risk of tarnishing their brand, which is why they will make sure you are tested with an Adidas/Reebok account first........you have to prove yourself........

Edited by englandmj7 on Feb 23, 2006 at 01:31 PM

[russellh]

LA Guy... agree with all the way, paying the bills are definitly important. Also, englandmj7, can I get your email or something? Id like to run some ideas buy you and hear what you have to think.

[englandmj7]

^^

[email protected]

[giantreptile]

ah, 'paying the bills'. what a great attitude to have when opening a store. you can pay the bills just as easily by offering something that no one else does, and having the savvy to target your audience. there is such a thing as over-saturating the market, and i think for a shoe store, you'll be recession proof if you can offer brands you can't get anywhere else. sure, you might feel like you are losing in the beginning, but you'll build a customer base. the nike thing is just a fad, but people will always buy quality, something nike is not.

[LA Guy]

Everyone's got to pay the bills. Let's say that he starts off with 100K capital for his lease, overhead, a skeleton staff, and his installation, and 50-70K for his first season's inventory. He has to do about 1-1.5 K of business a day, and more on weekends, to break even. And unless he has deep pockets, he can't go too many seasons losing money and still keep the lights on.

I'm not saying to play everything safe, but unless you are in, well, NYC or LA, where you can rely on a lot of savvy customers, you're going to need bread-and-butter core brands that might not be the most exciting, but that will sell consistently, and then allot a smaller fraction of your inventory in brands that you are excited about, will set your store apart, but for which you are not going to get as much sell through, and which you are going to have to work a lot harder at to sell and educate your customer about. "Hey, I know you love X, do you know we just got Y from T, and I think that would really be up your alley." And as your core customer gets to trust your judgement more and more, the more you can move your inventory more and more towards stuff you can really get behind. I'm not saying that the balance is easy, 'because it is tough as hell. It's a thin line between being too safe and stretching too far, too soon, and either way, you could end up losing your shirt.

Oh, and get a good P.R. person. Editorial coverage of a new store can, and often has, made or broken a store, especially if you are not in an area with a lot of traffic, and/or you don't have a *lot* of retail experience (which gives you an up because you can count on a strong pre-existing customer base straight from day one.)

I think that give what the original poster wrote, that this is not a bad general business strategy.

[russellh]

First off... Id just like to say thanks for everyone commenting, its good to hear a different perspective (besides niketalk).

But exactly... the whole purpose of the store is to bring something different to the consumer, and that was my idea from the beginning. But in the ABE area (allentown/bethlehem/easton) its just footlocker, champs, modells, finshline and Im not sure how the people would react to something different, because (at least around here) people see nike and think "buy it" and I can honestly say, Im not sure how the reaction would be, but regardless... I would still bring in different brands.

As for paying the bills, Im not gonna lie, there is always this thought in the back of mind about failing... and it would kill me to see all my money go down like that. I just wouldnt have it. But at least with nike, people recognize it, and that might be able to help me to turn people into the shop. But again, regardless of nike, different brands are the key to the store, I want to bring in something new and fresh that people are not familar with.

With that said, I think giving the customer knowledge about the shoe is key, because if they are not sure about, I want to back that shoe and explain some features that make this shoe different from all the other brands.

[homi29]

honestly , i think you should take alot more time and consideration into the topic before seriously going through with this.

Everyone thinks that once u have a nike acct , shoes will fly off like hotcakes, but u gotta take into consieration, that ur not gonna get dunk SBs, limited af1s, or air maxes off the bat.

ur gonna have to sell alot of GR , and normal releases before they trust u with QS/SB/Hyperstrikes..

so in that regard, first get some connections and more knowledge, and possibly other brands to stock, before u go through with this

[russellh]

Yeah, I'm still not sure what I want to do. I have a plan written down with possible options, but like I said, I'm not 100% sure. I've heard so many different stories about shoe stores. But yeah, I need some time to think it out.

[russellh]

Oh, I know this is kind of late and I didnt want to start another post... but just a general question to anyone who reads this, Id also like to hear some responses (anything really) so post or PM me to exchange some thoughts.

So like the previous post, I really know that I have a lot of calls to make and see where I really want the store to take direction. But just looking at other message boards and hearing various info, where does anyone see the sneaker game going? I mean, do you think 3-5 years from now, all the hype around releases and color ways will still be the same?

Just asking to get a business perspective. When I look at all the "sneaker sites" there are always new models and different colorways, it seems unstopable. But then again, I hear stories that opeinging this type of business, profit is hard to come by. Just want too hear what others think. Thanks

[Roland]

I don't think you should have a problem getting the Nike SB account in Eastern PA. I know a store that gets all the releases thats not very special. That being said don't expect to get European releases like Alife.

[LA Guy]

Retail is just tough. That's it. First seasons are especially tough, especially without a pre-exisiting customer base. I recommend spending some money on a publicist to get yourself into at least local press. Prepare a good press package too.

[RedBouncyThing]

What we have done is focused on exclusive, not to expensive clothing. It is not to hard to get people to work with you i that arena. At the tradeshows everyone we talked to seemed pretty interested in putting stuff in our store because of who we all ready carried. Off of that, we have good accounts with Adidas, New Balance, Royal Elastics, and Gola. We hit are more savy customer with Creative Recreation and FEIT. I will be adding in a pretty decent Reebok account this year, and if all goes well Nike. The trick for us has seemed to be that the shoes are secondary in our store, and yet shoe companies still want to be represented strongly. This has led to them wanting to put their better merchandise into the store. I think in a round about way that by the end of the year we should have our inventory exatcly where we want it.

Now, as far as will this "fad" of people buying up every release go away ? I woul guess not. I have worked in this industry for almost 12 years now and good product is always in demand. The styles might change some, but the good stuff always sells. I would just find a couple of people who you want to work with, and really grow your relationship with them. The other details will fall into line nicely after that.

Cheers.

[russellh]

Sounds good... thanks

[Bing Bing]

As far as the 'sneaker game', for me, it has changed quickly over the past year. When I first started getting interested in actively 'hunting' for sneakers about 5 years ago, I was trying to get all the hot releases that were readily available in my city, on ebay, and online. Now, it's gotten to a point where it's too saturated and I only buy shoes from an aesthetic point of view, and not how hot, hyped, or limited a shoe is. I'm very discriminant about what I buy now--basically, I don't NEED or WANT every shoe that comes out.

But there will always be the fanatical head that camps out, and always the new kiddies that are just catching on to the game. So, I don't think the craze is going anywhere unless the sun explodes and we need shoes for other non-functional uses.

I'm so self-conscious...

[russellh]

RedBouncyThing... can you post your email for me, Id like to send some info your way and hear what you have too say.

Thanks