Source: ADIDAS 4D REDEFINES RUNNING FOR YOUR SPORT WITH ALL-NEW FW18 ALPHAEDGE 4D
In a recent blog post on Future Tomorrow, analyst Steve Joseph introduced a problem that I had long been discussing on ARCH in regard to adidas. His analysis measures why adidas’ recent ‘growth’ is at an end if the brand doesn’t correct serious issues particularly in pricing. In his post he delivers a quote,
In talking to users and asking them questions such as “why didn’t you buy a pair?”, I repeatedly heard that a price point of $200-$220 would have been a “cop”, but not at $300. Where did they get this $200-$220 price point from? The V3 and previous Yeezy 500 cost between $200-$220. On the most recent 700 Wave Runner “Mauve” release and the restock of the 2017 “Solid Grey” 700, Adidas raised the price by some $100-$80 for the North American market.
This quote is at the core of why I’m writing about this upcoming release from adidas. The AlphaEdge uses the Carbon 4D midsole which means that the shoe can be assembled at Speedfactories reducing the time from inception to release. The issue is 4D is not yet at a price that is attainable for the masses. This places the AlphaEdge, a shoe that is a descendent of the AlphaBounce, in the premium category. It retails for 300.00. The premium category is where sneakerheads exists and if they aren’t buying Yeezy footwear at the elevated prices, is 4D enough to drive them towards the new technology?
If eBay is used in reference to this question then the answer is clearly ‘no’. Right now on eBay using the search adidas 4D, 300 pair show up on the site. Only 118 pair have been sold. As resale is an indication of brand heat it should be noted that the majority of the releases on eBay are collaborative efforts from Kith or extremely limited releases. There have yet to be any real extensive drops of 4D footwear. This model was released in a limited fashion on 10-20-2018. When the search is modified and made more concise by adding alphaedge, there are 32 pair listed, 17 pair sold. When you look at StockX only 7 pair have been sold since their release at a 54.7% markup or 619 a pair. According to the work by Steve Joseph this trend will shift dramatically upon the restock on November 14th.
The resale value shows that this 4D release is purely fashion and not performance. It also shows that interest isn’t really very high. adidas is trending down on their hometurf and growth is slowing in the U.S., is 4D technology (3D) really what the brand needs at this moment? adidas is still showing growth because of footwear under 100.00 dollars. The adidas NMD is no longer a driver of interest and the UltraBoost in resale is completely dead. The Superstar was never going to sustain as the people who tend to buy Superstars and Stan Smiths buy very few shoes. They wear those shoes until they fall apart so while the AlphaEdge appears to be a fantastic performance model, people who truly train are going to stick with ASICS, Newton and other brands at a much smaller price point.
It’s admirable that adidas is looking at sustainability in footwear, but until the Carbon printing for 4D is reduced in cost it doesn’t seem like the logical thing to do especially as the brand is on discount in AlphaBounce and over 70% of the adidas wall at major retail. This doesn’t mean that I don’t like the shoe. I think it looks lightweight and stylish, it shows a move towards sustainability… but a white, lightweight trainer at 300 dollars for people north of the equator in the winter seems a little bit ill-timed and really isn’t what adidas needs at this moment. adidas needs something that connects with more people at a better price point with an incredible story. This shoe doesn’t hit those marks at all no matter how nice it looks.