Sneakers generated $70B last year. Black retailers saw little of that
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Earl West has a guest bedroom that looks more like a sneaker factory in his suburban Atlanta house.
Shoe boxes stacked high with the best sneakers in different colors and designs cover the space from floor to ceiling. There are almost 900 pairs of sneakers inside, which West estimates to be worth more than $100,000.
“My friend, who was the one to get me into all this fun with him, said he was also the one who put the needle through my arm. West, 55, described himself as “a needle head”, and said that he can’t shake the feeling. West is now a manager at an information center, has been collecting since 1982. It’s also been difficult to find Black shops that sell sneakers.
West is just one of thousands of Americans, particularly Black men, obsessed with sneakers. According to Statista’s market research firm, they drive a market worth $70billion in 2020.
Yet, the harsh truth is that while sneakers are an essential part of any outfit, and Black consumers have been at the forefront of that trend, the retailers of these highly sought-after items are very difficult to find.
In March, Nike published a sustainability report that began with John Donahoe (the president and chief executive of Nike) stating, “Our brand wouldn’t be what it today without the strong contributions made by Black athletes and Black cultures.”
Despite the fact that some retailers work to change the disparity, these “contributions” do not generate much in the way Black wealth.
Jared Ball of Morgan State University is a popular culture expert and professor of African American/African Diaspora Studies. It does not necessarily mean consumers have power, just because this economy is consumer-based.
The chance to own a piece of the billion-dollar industry
Many in the industry — from retail store owners, consumers, franchisees and executives — have expressed concern that only 5 percent of sneaker retailers in America are Black.
James Whitner, who is Black, said, “It’s like most things, it’s a White boys’ club.” Whitner has established a profitable niche in the market with several stores that sell sneakers and boutique clothing. While there are many people who know this, their privilege does not make them have to do anything about it.
Whitner’s company has grown from a Charlotte-based apparel and sneaker store to include several East Coast boutiques for The Whitney Group.
Whitner is so popular that Kamala Harris, the Vice President, visited Whitner’s shop while on the campaign trail last. A Ma Manerie x Air Jordan 3 is also a Nike sneaker that Whitner created. It was named for the Atlanta store.
Whitner, despite the support of his community, is an exception to this industry.
He said, “My salvation grace was that I had a great ecosystem of Black people who taught my the ropes.” On the other hand, there are white gatekeepers that keep us out. Because they are part of an established system to keep us out, it’s up to you whether or not you want to alter the rules.
There is no identifiable data that tracks the number of Black-owned independent sneaker retail stores, but Whitner said he knew them all and counted 18 — including three in Europe. He said, “That’s all.”
Whitner owned his first store for five-years. But, in 2011, he changed his mind and took his company to the next level. My first store was Flava Factory. “That name was extremely black, and very urban,” he stated. He changed the name to Social Status. The opportunities began to open up all over again. Since then, the company has seen an explosion in sales.
Ball believes that political power is the only way to bring about significant changes. He stated that public policy must be developed through law, or policy mandates, to ensure the wealth created from all this consumption and exchange (e.g. the $70 million sneaker market) is redistributed to those who are consuming it. This is not an order to Black men to create a sneaker distribution or company. There’s no way to catch up with Nike, Adidas and everyone else. The only way to make it work is for consumers to not only have the ability to withhold their cash but to also benefit everyone. Although it may not be easy, this is my only hope.
Black Isom Lowman owned 22 Athlete’s Foot shops, and has since purchased and sold many of them. This brings his total to nine.
Lowman claimed that “you can count us all on one hand” in the sneaker market. That’s quite sad, considering we are the primary consumers and the ones who created this industry.
Potential store owners face a high barrier in entering the retail marketplace. There are corporate controls over what stores sell sneakers and startup costs of around $60,000.
Whitner stated that success requires resources. Whitner stated that not everyone has the necessary resources, business knowledge or understanding to win in the industry. Being disadvantaged can make it difficult to get started.
Ball traces the rise of sneakers to Run DMC’s 1986 song “My Adidas.”
Ball explained that sneakers have a long history with Russell Simmons, Run DMC, hip-hop and their influence on sneaker culture. The influence of Blacks on American culture is also reflected in hip-hop as a fashion phenomenon. It has been stated that there is no American pop music without Black people.
Black culture was the catalyst for the sneakers phenomenon. Michael Jordan’s rise to fame in the 1980s became the global icon of the shoe. Air Jordan sneakers quickly became a must have for all young people thanks to Jordan’s brilliant marketing campaign and their soaring popularity.
According to West, the head of sneaker design, the best pair of sneakers “tells a lot about you.”
Lowman, 45 years old, stated that it is troubling to him that an economy driven by Black culture and Black dollars does not include Black business. When he turned 22, Lowman started the business. Morehouse College gave him a semester off and he scrambled to get the funds he needed to open his first shop. For his purchase of his first store, he relied on some scholarship money left over from Morehouse College and loans from his parents.
He said, “It was not easy but I had lots of support. It enabled me to repay my parents and purchase other stores.” I’m thankful that Athlete’s foot had established a business relationship with a bank to finance franchises. We know the extent of racism in banking.
Lowman stated that it is harder for Blacks to acquire retail space today than it was twenty years ago.
Because of its global popularity, Nike is an important brand in the athletic world. This alone is enough to determine the viability and survival of a shop. This shoe brand implemented direct-to-customer elements that cut out most retailers. Nike has been more selective in choosing which retail outlets sell its products. It often chooses to focus on its own stores. Nike also produces fewer shoes to increase demand.
Lowman explained that once you had a Nike Account, it was possible to open any store you wanted. But it is difficult now to open a Nike store. It’s much more difficult for the people involved in expanding the business and for the people trying to enter the business.
NBC News reached out to Nike for comments but they did not reply.
The barriers can be reduced
Darius Billings is the senior director for product and marketing at the Athletes’ Foot. He has been involved in athletic apparel/sneakers since 1988 when he graduated from Howard University. Billings stated that he got inspired after a conversation with friends and family during last year’s Black Lives Matter movement to think about how his company might be used in helping bridge racial inequalities.
He launched the Strategic African American Retail Track (or StAART) program this spring. It is intended to answer Lowman’s & Whitner’s concerns about creating pathways that allow Black entrepreneurs to own retail stores.
Billings stated that the program is all about encouraging change in an industry built on Black culture and Black influence. And from a holistic perspective, I looked at ownership. Then I asked myself the question: How many Black retailers are there in sneaker sales? There are not enough of them.
StAART is a Black-owned business that encourages, promotes and supports Black entrepreneurs within the sneaker market.
Jennifer Ford is the owner of Premium Goods, a Houston-based sneaker store. She was the first Black woman to own a country-wide sneaker shop that carried all major brands, including Nike, Nike’s Jordan Brand and Adidas.
Ford was encouraged by a business friend to get involved. At the time she was buying department stores in New York.
She said, “But if StAART was around, it would’ve helped me so much.” “It would be amazing to have someone remind me to watch this and not do that. It is important to find a great accountant. A lot more confidence would have given me the ability to open new stores and expand. To open another store, it has been difficult for me.
Whitner shared with Black owners potential Black retailers through summits over many years.
He stated that half of our business was profit and the other half is non-profit. His whole purpose in creating this industry was to help people. “I’m working with business partners like Nike and from other industries like Bank of America, and we’re strategically working on summits, classes — anything that we can do to help bring Black people along to really help try to close the gap for our industry. The change isn’t happening overnight. The work is ongoing every day.”
He said Black entrepreneurs should also do their part. Whitner stated that when there are resources available, Whitner suggested that they must take advantage of them. He also said that he believes it is important to hold themselves accountable for breaking the system. You can’t just say that the system is against your will. You can break any system by succeeding within it, and then let that system know about the problems.
Sneakers: ‘Camping out’
If he could, West stated that he would only support Black-owned stores. West’s passion for sneakerheads is so ingrained that he used to spend four days waiting outside Whitner’s Social Status in order to get one of the Air Max 97s. It was a collaboration between Nike and Sean Wotherspoon, and it was partly made from corduroy. These pairs can be purchased online at as high as $2,000 The retail price is $160
West wouldn’t be the only one who would spend dark nights trying to find a pair of shoes.
West recounted that when they were camping, at the end of two days one would tell another, “I’m going to go home to shower and get food,” and he did so overnight. “I would ask the guys if they’d like something to eat so that I could return to my spot.”
West admits that his addiction to sneakers may not be practical. He pointed out, however that he gives away dozens upon dozens of shoes each year to shelters and organizations serving the homeless. He wore the same pair of shoes every day for 2 years before the pandemic.
West claimed that he spent $30,000 on sneakers that now have a value of more than $35,000, as some shoes have appreciated in price over the years. West knows that he’s overpaid for some shoes by buying them through resellers who add another dimension to the sneaker universe.
West stated, “Yeah. I understand it may not make sense for most people but it is what is it to us, real sneaker heads.” “We love it. It is worth the sacrifices. There’s no shame in it.”
His life actually is unfolding as he promised his mother. His mother said that when he was growing up in Seattle they couldn’t afford many things. Safeway was my dad’s employer, which meant that we would need to purchase Safeway shoes. When I was old enough to purchase shoes, my mother asked me. It’s been what I did for years.
The power and influence that Black culture has on mainstream society ultimately explains why sneakers are so dominant. It is a sign of something else that there aren’t many Black sneakers retailers.
Billings declared, “This is an occasion for us to have our ideas,” “Black culture is what created this phenomenon. I believe that the Black Lives Matter movement should not become an event in time. It’s important that we continue to fight for equality and equity and help create Black business.”
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