“Why are Nike Air Jordans so expensive?” is a question you’ll often hear from those not directly influenced by the world of sneakers. Those in the know, however, are fully aware that the sneakers command exorbitant prices for a multitude of compelling reasons: history, technology, quality and great marketing.
You’re Paying For Jordan History
Firstly, Nike Air Jordans boast a rich historical lineage, particularly those endorsed and worn by the legendary Michael Jordan. With the iconic NBA star’s ascendancy, the Jordan Brand skyrocketed in prominence, imbuing each release with an unparalleled aura of prestige and desirability.
Moreover, the Air Jordans incorporate cutting-edge Air Max technology, a revolutionary cushioning system engineered to provide unparalleled foot support, especially during high-impact landings. This technological marvel elevates the wearer’s comfort and performance to unprecedented levels, further enhancing the allure of these sneakers.
However, it would be remiss not to acknowledge the paramount role played by Nike’s masterful marketing prowess in the resounding triumph of the Air Jordan line. The brand’s astute promotional strategies and captivating campaigns have undoubtedly played a pivotal role in cultivating an insatiable demand for these sneakers, propelling their status to lofty heights.
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Sneaker Exclusivity
Over the years, Nike Air Jordans have become synonymous with prestige and exclusivity, captivating sneaker enthusiasts and fashion aficionados alike. The allure surrounding these iconic sneakers goes beyond their style and comfort—it resides in the mystique and history of the Jordan Brand.
One of the key elements that differentiates Air Jordans from other sneakers is their resale value. Take, for instance, the Jordan 1 Retro Fragment, which originally retailed for $185 in 2014 but can now resell for up to $2000. Similarly, the Yeezy Boost 350 V2 Core Black/Red, released in 2016 for $220, now commands a resale price of $900. However, the Fragment’s resale value surpasses that of its competitors, prompting us to question why Jordans have become significantly pricier and so expensive.
To understand the staggering price tags attached to Nike Air Jordans, we must delve into the value of the Jordan Brand and its meticulous approach to manufacturing and marketing. The production of these sneakers in China, where tariffs are higher, the utilization of superior factories, and the use of more material in basketball shoes compared to running shoes are all factors that contribute to the elevated prices. Furthermore, the Jordan Brand strives to remain faithful to the original product, driving up costs to maintain the authenticity and quality that sneaker enthusiasts covet.
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Why Jordan Brand Charges More For Their Sneakers
According to industry expert Matt Powell, the average price of a basketball sneaker stands at around $110, whereas Jordans average around $145. So, why can Jordan Brand charge more for their sneakers? To unravel this, we must travel back in time to the inception of the Jordan 1 and the audacious decisions made by Nike.
As seen in the movie Air, prior to the 1984-1985 season, Nike took a gamble by signing an unproven Michael Jordan to a five-year deal worth three times more than any previous contract. However, that was not the only bold move made by Nike during the launch of the Air Jordan brand. The Air Jordan 1 boldly defied the NBA’s uniform policy by swapping the standard white upper for a black one, resulting in a $5000 fine per game. Nike astutely recognized the marketing potential in this controversy, footing Jordan’s fine as he played every game in his banned namesake sneaker and ultimately won Rookie of the Year. This rebellious image resonated with people and catapulted Air Jordans to unprecedented heights, solidifying their place in sneaker culture.
Michael Jordan’s success as a rookie propelled Nike’s profits to new heights. The original Jordan 1 hit stores in March 1985, retailing at $65. By the end of that year, the Air Jordan franchise had amassed an astonishing $100 million in revenue. However, the Air Jordan 2 did not achieve the same level of success, as Jordan suffered a season-ending broken foot after just 18 games. Rumours circulated about his dissatisfaction and potential desire to join Adidas. (See an artist’s interpretation of what the Adidas Jordan sneaker could have looked like.)
Air Jordan Sneaker Technology
Enter Tinker Hatfield, renowned as the architect of modern sneaker design and an innovator in Nike’s Air Max technology. Hatfield’s design for the Jordan 3 became legendary, introducing the first-ever mid-cut basketball sneaker adorned with elephant-print overlays and immortalizing His Airness in the iconic Jumpman logo. Hatfield’s incorporation of Air Max technology into the sole further cemented the Jordan 3’s cultural significance, turning it into a statement shoe that went beyond its on-court purpose.
Nike’s marketing team strategically forged partnerships, notably with filmmaker Spike Lee, resulting in unforgettable commercials that embedded the Air Jordan brand into the collective consciousness. The Jordan 3’s release, combined with Nike’s innovative marketing efforts, transformed the brand into a luxury product that fueled conspicuous consumption. Owning a pair of Jordans became a symbol of status, further driving up the price.
As the years progressed, the price of Jordans soared. By the ’90s, they were not merely sneakers; they were a cultural phenomenon. Unfortunately, their desirability also led to instances of violence, with reports of crimes committed for coveted Jordan sneakers. Nonetheless, the brand’s popularity persisted, propelled by Michael Jordan’s marketability, charisma, and global influence.
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The Sneaker Market
Tinker Hatfield continued to design signature sneakers for Jordan for the next 12 years, firmly establishing the Jordan Brand as a sneaker giant. However, in 2013, Adidas entered the picture, releasing new technology and signing Kanye West, which presented a challenge to Jordan Brand’s dominance. Despite increased competition, Jordan prices remained high, with new releases, such as the Jordan 11 Retro Concord, retailing at $250—an unprecedented price point.
Nevertheless, Jordan Brand faced a period of stagnation and oversaturation in the market. A surge in retro releases, along with increased competition from Adidas, led to what experts dubbed “Jordan Fatigue.” To address this issue and reconnect with young consumers, Nike’s CEO, Mark Parker, implemented the “edit and amplify” strategy, streamlining the company’s sneaker ideas and focusing on quality over quantity.
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Why Are Nike Air Jordans So Expensive In 2024?
Today, Jordan Brand continues to captivate a new generation through collaborations with influential figures such as Travis Scott and the late Virgil Abloh. The brand has successfully struck a balance between nostalgia and innovation, and Air Jordans, particularly the Jordan 1, remain highly coveted all these years later. The resonance of the Jordan Brand has reached such heights that the products themselves serve as a magnet, drawing consumers in without the need for extensive marketing campaigns anymore.
So, why are Nike Air Jordans so expensive? Again, the high price tags associated with the sneakers can be attributed to a combination of factors, mainly history, technology, quality and great marketing. But mostly just because of the legendary NBA star, Michael Jordan.
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Tell us, why do you think Nike Air Jordans are so expensive? Should they be cheaper?